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Weekend Thoughts

weekend thoughts

Weekend Thoughts – 8

 

  • An investment philosophy is not available next door. It gets built over a period of time. One needs to go through a lot of ups and downs in order to visualize what really works best for him/her.
  • If you want to be a cricketer, you need to practice 10-12 hours a day. While it’s exactly opposite when it comes to investing. With an extremely low activity, you can generate one of the best results in the long-term.
  • The sparks of Warren Buffett picking a minority stake in Paytm have been flying for quite a while now. Certainly, a big boost for tech startups in India. It clearly indicates the huge potential of technical breakthroughs that are happening in India.
  • Money is put at risk when invested in equities. But when it’s well diversified over a set of quality companies, it grows considerably in the long-term. Money is put at risk too when kept in a savings account. And the inflation risk ensures that you fail to achieve your goals.
  • The buy-and-hold strategy doesn’t mean Buy-and-Forget. It means Sitting Passively and Observing Actively.
  • When we wrap our mentality around a long-term orientation, we start competing against ourselves. It’s too difficult to manage emotions for such a huge timespan.
  • Based on the bits of advice from the business news channels, most of us invest in order to reap the profits at the end of the day. A time horizon of just 1-day. Is buying quality and waiting not important? Is today really important?
  • The way we behaved in past can be one of the best indicators to show how we would react during future declines. In the hindsight, we may now look at the past declines as opportunities but show the same irrational behavior whenever a decline would happen in future.

 

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The cover image has been taken from Jeremy Gouge

 

 

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Weekend Thoughts

Weekend Thoughts – 7

 

  • If the recent selloff couldn’t deter your investing discipline then the upcoming 4 State Elections, General Elections, Spike in Oil Prices, further Depreciation in INR, CAD, Sanctions on Iran in Nov, Hike in US Rates mustn’t impact it either. Macros are not going to improve soon
  • Due to the recent sell-off in small & midcap space, many quality scrips had to bear the brunt too. The gains made in 2017 have been wiped out in 2018. But don’t be disheartened. Continue investing in the quality companies. Going forward, you’ll surely reap the benefits
  • Some of the stocks rise due to their strong fundamentals. While a few others rise in the anticipation that they’ll perform well in the near future
  • There are many companies that don’t look good on the paper. But people love the euphoria behind them. Emotions come into the picture and the stocks start rising
  • We don’t need to have an IQ of Einstein or Newton to invest. Investing is simple. Formulae make it complex
  • Mark Zuckerberg’s wealth plunged by $18 Billion yesterday. A decline of 20-30% has happened in the past too. That too with strongest of the strongest stocks. It’s always better to be psychologically prepared to face such drawdowns
  • The quality holding will always bear the brunt of the noise in the market. Its price may fall down in the short-term but in the long-term, it will always stand tall
  • If you are investing through SIP route, never stop following the process. Have faith in the Indian economy and stay disciplined with your approach. You’ll surely get rewarded

 

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The cover image has been taken from Wallpapers Den

 

 

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Weekend Thoughts by RichifyMeClub

Weekend Thoughts – 6

 

  • One of the biggest challenges I have ever come across is to manage my emotions during the downsides. Even a fundamentally strong stock can go southwards due to weak sentiments. But the emotions that lead to panic selling need to be kept under check
  • A 4-letter word, WAIT, has an immense magical power to make you filthy rich, provided that you are ready to wait
  • Whenever an entrepreneur tries to enter a diversified segment, he gets a thumbs down from the investors. But personalities like Ajay Piramal have done it beautifully. Migrating from Textile to Pharma was itself a huge diversification. And his track record speaks on its own
  • Keep following the process of disciplined investing without worrying much about the outcome. You’ll surely get rewarded in the long-term
  • The difference between how you think you’ll behave and how you really behave during a downside is a deciding factor behind creating wealth
  • Life is of no use if what we all have is just money but no happiness. And if we are really content with what we have, we won’t be able to practice growth. Shouldn’t we live a happily unsatisfied life?
  • Long-term investing consists of many dry spells of zero or negative returns. Don’t get frustrated. After every dry spell, there comes a time when you get remarkable returns in just a few months. Just wait and stay
  • What really matters: Positive Long-Term Returns. What doesn’t really matter: Negative Short-Term Returns

 

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weekend thoughts richifymeclub

Weekend Thoughts – 5

 

  • We wish to reap all the benefits of a bull market without bearing even an iota of the brunt in a bear market.
  • In the hindsight, it looks fairly easy that one should have invested at the bottom of the market to reap maximum benefits. But in reality, it’s too tough to time the market.
  • A concentrated portfolio can do much better than the market average when the times are good. And much worse when the times are not good.
  • While trying to beat the market, more often we fall into a trap where the market beats us down.
  • A lot of investors invest in 15-20 schemes just for the sake of reducing risks. It doesn’t make sense. There is no point in over-diversification across the funds when a single fund itself is well-diversified.
  • We live in an era where the abundance of information is just a click away. It’s up to us how we filter the relevant data out of it and skip the non-essentials.
  • Since you don’t have the pressure to present the performance report card in the short-term, you can win. Since you don’t have the restriction to buy a large or small-cap, you can win. Since you can wait for the better deals and sit idle on cash, you can win.
  • Focus primarily on your behavior, not the market behavior.
  • If you believe that volatility is risky then not investing is a lot riskier.

 

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PS: The cover image has been taken from Every Pixel

 

 

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Weekend Thoughts

Weekend Thoughts – 4

 

  • Be cautious with your life savings whenever you hear about a hot stock-pick from someone. Don’t just invest blindly. Do your own research.
  • You are a smart investor if you believe that timing the market is totally worthless.
  • The real fun is in buying quality and waiting.
  • Speculation brings Excitement but highly Dangerous. Investing brings Boredom but highly Rewarding in the long-term.
  • Sachin Tendulkar won his maiden ICC World Cup in his 6th attempt. He continued his investment process over a period of 22 years. Dasrath Manjhi continued his process for 22 years to carve a 110-meter long path deep through a mountain. If they can, we too can. Stay Invested.
  • Mr. Market gives us an opportunity to invest in a business of our own choice even if we don’t have enough capital to start our own business.
  • First of all, we buy them at their peaks in late 2017. And then, we sell them when they fall down in 2018.
  • I have observed that people have become a lot more cautious in 2018 when the stocks have started falling down. I didn’t notice the same emotions when stocks were rising in 2017 since they were a lot riskier then.
  • A stock going up always attracts our attention while it scares us a bit when goes down. And during this whole process, we take our decision based on how we feel, not what we know.

 

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PS: The cover image has been taken from Photo Travellings

 

 

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Investing Thoughts

Weekend Thoughts – 3

 

  • Market corrections, which had been happening in the past, will keep on happening in the future too. You needn’t lose your temper as per the market’s behavior. Rather, they should be seen as opportunities to buy more quality companies which are available at discount.
  • John Templeton has said – People who try to become rich quickly, lose their capital quickly too. The burst of the year 2000 dot-com bubble proved this analogy right. People were buying internet companies shares ignoring other quality companies available at discount and regretted.
  • What I have understood in these many years that the more I keep myself calm when my holdings are down, the more I see appreciation in it once the market recovers from the setback. It’s my temperament & the emotional behavior that works as a strategy, not my brain.
  • If you really want to teach your kids something beneficial, teach them to set aside a part of their income and invest it when they start earning. Not only you’ll help them build a secure future but also make them transfer the same attributes to their kids as well.
  • Investing is something which you do to build wealth. Jumping in and out of the stocks on daily basis won’t do any justice to it. It may make you small profits but won’t make you rich.
  • If you learn to avoid a behavior which leads to poor outcomes, you will always have an edge over other investors. One such behavior is having a blind faith in the company you own. People fell in love with & Anil and saw their investments getting blown up in smoke.
  • During the dot-com bubble, people were rushing towards buying billion dollar valued internet companies. But Berkshire Hathaway was not performing well & Buffet had refused to buy dot-com stocks. Eventually, the internet companies went bankrupt and billion dollars were lost.
  • Heard it from that in long-term, you tend to witness various cycles with maximum returns, lowest returns, zero returns, and negative returns. People don’t want to see other cycles except for the one with maximum returns and thus try to time the market and lose money.

 

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