Sun rises from East
Though I shy away from discussing specific stocks, the intent behind such motive is to stop people from getting carried away suggestions which has a thin line of demarcation with a dangerous concept called tips. I may pick up some stock name and their rationale behind selection, but primarily I want to reach out to the inquisitive and eager investors who can take a cue from experience leaves if they feel appropriate. This is pure flame of what I saw all across these years, may not include ideal solution for any one.
My objective is to cover:
- Evolving investing philosophy and changes as the hair started becoming grey
- Beliefs, broken beliefs and role of emotions in shaping investment execution and strategy
- What made me turn to full time investor?
- Importance of writing (I try to do a lots of them-15-20 pages on an average a day), reading and meeting diverse people.
- The pivotal points which one has to create as you go on. E.g. wandering mind, experimentations etc.
- The difference between decision made and decision to be taken.
- All the tools, checklists, books and other resources that helped me to survive till now.
- How music, reading about speculators etc pump up your life to do more.
I always believe in tell all, this thread will reveal all that I learnt, did mistake over the years except personal information. I am going to cross reference a bit here and there with my other threads. Hope you enjoy the same as I am by writing, thanks in advance.
A summary on date
A qualified accountant (CA) and lawyer (LLB) ; backed up few more certifications and degrees, ironically never practiced any of these qualifications and certifications perhaps in true spirit. I used a couple of these certifications for capital allocation via salary and free lance consulting.
Total Experience- 21 years continuing
Full time investor since Jan 2016, after serving 17 years faithfully with different corporate.
Net worth days- 53 years 3 months (as on 31 August 2016)
Indirect Income/Direct Income- irrelevant as salary doesn’t flow (at the time of leaving job dividend was equal to take home salary). I am not including capital appreciation/gains as indirect income.
Indirect Income/Direct Expenses- irrelevant as salary doesn’t flow (at the time of leaving job indirect income was 2.9 times higher than direct expenses.)
CAGR-24.7% (as on 31 August 2016) with reinvestment.
Current Base investment philosophy- value, growth and active trader now
Mode of capital formation and allocation- trading profit, target based profit booking when required
Philanthropy- involved, may be not to the extent what I want.
Note- I covered a detail note on all the terms such as indirect income, net worth days earlier. Here is the link.
How the day looks like for this consultant?
- I get up diligently at 7 O clock in morning. Post morning rituals I open my trading tracker and review the decisions taken for yesterday. I will write more about trading in due time, for now I don’t do day trading normally; more of a swing and position trader.
- If I get some time, a lot of days I don’t have any trading or investing decisions; I read few pages of self development related books.
- Once the market opens if there are some actions needs to be taken (buy, sell) either for trading or investing I execute post 10 AM thinking initial opening emotions settle down.
- Till lunch I start focussing a stock screener, even if I don’t get one I keep trying. Sometimes if time permits I start documenting a stock.
- Post lunch I start documenting a stock analysis (either new stock or refresh for holding stock).
- After markets closed I update trading tracker, change the stop loss required and conclude decisions of exiting, adding further positions.
- Again during evening I devote time following books either on trader/investor profiles, investment or business strategy/economics books. Try to hit bed early.
Apart from this I keep myself engaged in special projects, currently I have 1 project in hand , I have opened a thread for this project here called “The Jewels of India”. Just completed two projects on growth trends and quasi investment philosophy.
Working hours -10-12, Stock Documentation- 4-5 hours (annual report, valuation, business model etc). Stock Screener- 1 Hr, Reading books- 2 hours every alternate day, all others- 2 hours.
I take off all Sundays and half of Saturday. In addition 5 leave in every quarter with one 15 days annual leave (coming next month).
Don’t get bored, lots more to come. I will move next to how it all began in 1992 (no investing only inquisitiveness and excitement), actual investment (1996, first year of article ship) and of course of lots of failures and a bit of successes. Like many others I managed few 200 baggers even a 446 bagger stock. At the same time colossal losses of 90-95% and subsequent learnings and un-learnings. Continue to fire questions if you have, happy to provide a reply if I can.
Meanwhile I got some interesting trends on my project working with Top performers of India. I will update them this week end.
Every time I write here it become an obligation to finish my work as most of things I write here is currently what I am doing. That’s a big help from valuepickr.
Good wishes and happy investing.