BKasal's Portfolio

[bkasal]

The Intelligent Investor’s Mistakes: Warren Buffett

38 Buffett’s Investment Stories, Gain Wisdom, Master Risk, and Maximize Profits to Build Enduring Wealth

“It’s good to learn from your mistakes. It’s better to learn from other people’s mistakes.” - Warren Buffett

One of its kind the author captured the investment mistakes of none other than a legend – Warren Buffett. It is an amazing one who started from scratch and became one of the richest men through investment. Buffett has the longest successful journey as an Investor and later as a businessman.

Along this decades-long journey, Buffett did many mistakes. It is an unusual paradox. These mistakes of both types of commission and omission.

Buffett acquired Berkshire Hathaway Inc. in 1965. It was a sick textile company. He turned it into a self-sustaining machine that generates massive returns for its Owners.

The book has 38 stories of companies. In them, Buffett made many types of mistakes that investors face. The book starts with the acquisition of Berkshire Hathaway. It goes up to recently in 2023, Taiwan Semiconductor Manufacturing Company Ltd. (TSMC).

The book is divided into three parts -

Part-A: Mistakes of Commission

The commission mistakes are typical to any investors, including Buffett. These are due to biases, evaluation of the company’s economic outcome, competitive strength, how to think about the market price movement, and much more.

Part-B: Failed to Capitalize in 2008 Crash

2008 US market scenario was comparable to the 1929 depression. This was the time the market was giving exceptional opportunities to invest. Buffett’s inappropriate capital allocation cost more to Berkshire.

Part-C: Error of Omissions: “Thumb Sucking”

The error of omission is not recorded in Berkshire’s net worth. Buffett and Munger both regret often the habit of thumb-sucking. These opportunities include companies like – Amazon, Google, and many more. The book presents you with what was going in Buffett’s mind when missed these opportunities and the lessons to be learned from them.

These stories help an investor to get exposure to different situations where mistakes are possible. Also, these companies are from various industries and operate in the global market.

The author has presented the lessons based on the Buffett’s story and own experience as an investor. The lessons are touching many aspects of investments like -

1) Investment Framework and Processes

2) Investment Strategies

3) Risk Management

4) Capital Allocation

5) Valuation

6) Smart Diversification

7) Decision Making

The book is a collection of 38 companies or industries written in crisp and to the point. The author avoided jargon and wrote to give maximum value to the investors. The author himself in the stock market for the last 20 years. Hence he understands the problems faced by investors. Hence he focused on lessons and solutions for investors.

These lessons would help investors to guard against their own emotional biases. These are common challenges faced during investment journey. However, the important aspect is to recognize and act upon is what counts.

So, the investors who want to leverage on legend’s mistakes and take lean in their own journey through the book.

Get Here: https://relinks.me/B0CW1CKX8H

[bkasal]

Investors,

Remember -

1. Zoom Out, Don’t Drop Out

• Markets fall, but history shows they always rise again’.
• Sensex grew from 100 in 1979 to over 70,000+ today — despite multiple crashes.
• Bear markets test your patience, not your potential.

2. Stick to Value, Not the Noise

• Ignore headlines. Focus on businesses with strong cash flows, low debt, and a moat.
• Remember: Warren Buffett made most of his money by being greedy when others were fearful.

3. Keep Investing Consistently

• Bear markets are discount seasons for great stocks.
• Staying invested during down phases is what builds long-term wealth.
• Compounding only works when you don’t interrupt the process.

“Tough times don’t last. Consistent investors do.”
Stay calm, stay invested, stay free.
Follow value based long-term investment strategies and framework.

[bkasal]

Top 3 Ways to Handle a Bear Market

1. Zoom Out, Don’t Drop Out
   Markets fall, but history shows they always rise again.
   Sensex grew from 100 in 1979 to over 70,000+ today — despite multiple crashes.
   Bear markets test your patience, not your potential.

2. Stick to Value, Not the Noise
   Ignore headlines. Focus on businesses with strong cash flows, low debt, and a moat.
   Remember: Warren Buffett made most of his money by being greedy when others were fearful.

3. Keep Investing Consistently (SIP = Success in Progress)
   Bear markets are discount seasons for great stocks.
   Staying invested during down phases is what builds long-term wealth.
   Compounding only works when you don’t interrupt the process.

“Tough times don’t last. Consistent investors do.”
Stay calm, stay invested, stay free.

[Mudit.Kushalvardhan]

Can u suggest some concrete ideas and specific companies and sectors which we can study further and actual make use of your knowledge and experience??

[bkasal]

I think rather than sectors focus on businesses and valuation/MoS. There are multiple ways/strategies can be used based on what is offered by the Market.

You can study any company and create own circle of competence. You may make money over the time…

Simple rule in investing is - get more than what you put in.
Variables to review are gap (value vs price), capital allocation, risk of loosing, business economics, promoters as partners, opportunity cost, other…

Usually, I avoid talking about specific company for 2 reasons - 1. I may be biased, 2. I don’t want to increase the demand for shares artificially.

[bkasal]

Over period time I realized, managing own emotions is the KEY in the Stock Market Success.
The market system in only to serve to give opportunities to - Buy or Sell.

1. Identify a wonderful business, Buy and sit on it to Compound the Wealth. [Of course be watchful]
2. Buy any stock with wide Margin of Safety and Sell to generate cash.

Move only needed. Is that SIMPLE.

Cheers!

[bkasal]

Invest smartly today to transform your needs into dreams, and dreams into legacy.

[bkasal]

This weekend reflect and transform your mindset for better financial future,

[bkasal]

10 Inspiring Moments from Warren Buffett’s 2025 Shareholder Meeting

A blend of wisdom, wit, and wealth-building magic — straight from Omaha.

1. “We’re Still Winning Big” – (08:24)
   While the world was worried, Berkshire grew ‘+19%’ in just 3 months. The rest of the market? ‘Down 3%’. Proof: Calm minds build wealth in chaos.

2. $1 Trillion Dream Come True – (16:30)
   From a failing textile company to a ‘₹83 lakh crore giant’ — Buffett’s Berkshire crossed ‘$1 Trillion’ in value. A reminder that big dreams take time… and patience.

3. Squishmallow Frenzy – (23:00)
   Warren & Charlie plush toys sold at ‘1,000 per hour!’ Even in investing, joy and brand love can create magic. People don’t just invest in stocks — they invest in stories.

4. Bold Moves in Japan & US Bonds – (56:37–1:07:01)
   Berkshire now owns ‘5% of US Treasuries’ and made bold gains in Japan. Buffett’s secret? Stay liquid. Be ready. Strike only when it’s worth it.

5. Skipped Real Estate Deals – (1:17:19)
   He skipped flashy real estate offers. Why? Because ‘time’ is Berkshire’s most valuable asset. A gentle nudge to all of us: not all shiny things are gold.

6. Geico is Back, Stronger – (1:47:31)
   Geico’s turnaround is a case study in resilience. And guess what? Berkshire gets ‘paid to hold money’ — a rare power move in the insurance world.

7. “Don’t Panic, Just Think” – (3:09:30)
   Buffett said: If market swings make you nervous, you may be playing the wrong game. In investing — ‘calm > clever’.

8. Casino vs Cathedral – (4:38:48)
   Buffett warned: We’re feeding the financial ‘casino’ too much, ignoring the ‘cathedral’ of real businesses. A deep lesson — build wealth on substance, not hype.

9. A New Leader with Buffett’s Blessing – (5:53:01)
   Greg Abel will lead Berkshire forward — with Buffett as his guide. A touching sign of leadership with love, trust, and legacy in mind.

10. “Buy When Others Are Afraid” – (6:02:27)
    Buffett’s golden rule echoed again: ‘The best deals happen when fear is in the air.’ Courage creates fortunes — not comfort.

‘Big Takeaway:’
Warren Buffett’s 2025 meeting wasn’t just about stocks. It was a masterclass in patience, simplicity, and staying human in a noisy world.

These are simple, but powerful messages for all we investors to learn and cultivate.

[bkasal]

I’ve officially cleared the SEBI-authorized NISM Research Analyst Certification Exam – a key step in my mission to build India’s most trusted tribe of intelligent, freedom-focused investors.

Thank you to Valuepickr. I learnt many things from the portal. It is a wonderful platform. Thank you.

[bkasal]

Based on my observation A retail investor investing directly into the Stocks has must more advantageous position that a large institutions. Here is Why?

1. They Buy Junk You Don’t Want

• Institutions Must buy the same 50 boring stocks everyone owns
• Direct Investing: Buy only the best companies YOU choose

2. They Move Like Snails

• Institutions Take weeks to buy/sell while you lose money
• Direct Investing: Buy or sell in 3 seconds when you see opportunity

3. They Water Down Your Wins

• Institutions Mix your winners with 100 losers - kills your profits
• Direct Investing: Put all money in your best picks - maximum returns

4. They Hide What They’re Doing

• Institutions You don’t know what garbage they bought until 3 to 6 months later
• Direct Investing: You know exactly what you own every second

5. They Take Their Commissions First

• Institutions Take 0.1-5% of your money every year - win or lose
• Direct Investing: Zero fees. You keep everything you earn

Wake up: Fund managers get rich from YOUR fees. They win when you lose. They collect millions while your returns stay average.

You deserve better. Keep your money. Make your choices. Get rich YOUR way.

Learn the Value-base investment game for long-term wealth creation, not for a mediocre returns.

[Mudit.Kushalvardhan]

@bkasal , but sir, if you check the cagr returns of prominent mainstream funds, from last 15-20 years, whether large cap or midcap or smallcap, they have consistently given 15-18% returns. They have given these returns inspite of all down phases of 2008, 2018 ,2020 etc. While most retail investors lose money over long period by direct stock investing. And those who claim that they are getting multibaggers , of you ask them what has been their cagr, either they lie or just no idea about returns.
So for long term wealth creation , how much sensible it is to depend on our own skills, when we dont even know how to calculate our cagr returns?? And by the time a retail inveator gets enough knowledge and depth of business analysis, he is already retired or 64 year old…

[amitvohra]

I agree with your views and still suggest to park some money in mutual funds based on your experience and equity performance.

Retailors have great advantage in choosing micro caps and a disciplined approach over long periods can have good results.

Above is only true if you are able to research for at least 10 hours a week, remain nimble footed and disciplined in portfolio rebalances and have a long term India story view.

[Mudit.Kushalvardhan]

@amitvohra , what has been your xirr of portfolio in last 10 years?

[amitvohra]

Its around 15 percent for last 7 years and I believe I will be able to improve more with time. I am late in putting more allocation in equity as was more comfortable with @9.5 percent tax free IRR for my Forward NRE FDRs.

[Mudit.Kushalvardhan]

There are many mainstream mutual funds who have given 25-30% over the same period. And you might have bought and sold stocks and incurred capital gains tax and other costs.

[amitvohra]

My learnings is not on selection of mutual fund or stocks but discipline in holding the winners and pruning the loosers and investing with a long term vision.

With above now sorted, CAGR is a matter of time

[bkasal]

I understand, Mudit from where you are coming.
Yes, first own emotional control, and skill to manage own portfolio need efforts… serious efforts.

First, difficulty should not keep away people from learning and evolving. It gives them more management of own capital, and of-course FREEDOM - Life.
My intention is everyone must work towards it We are in a growing economy and businesses… will find good opportunities in the market.

Secondly, as specifically you mentioned Mutual Funds. We need to account the capital flow into them been grown substantially in last 15years. So, the NAV.

As you can see, SENSEX itself been steep post covid. It elevated CAGR. And so funds.

Thanks!

[Mudit.Kushalvardhan]

Agree that fund flows after covid has added to the fund performance. But just fund flows cannot be the reason for their stellar performances. If that would have been the case, returns of mutual funds in only last 5 years would have been great. But check last 15 years and some funds even 20 years, they have given consistently good returns. And mutual funds have faced all sorts of market conditions, bear market, geopolitical headwinds, 2008 crash, 2012 asian crisis, 2018 debacle in small and midcap. Even after all these issues they survived and triumphed. They have given stable returns over time as against most retail investors lost money big time.

[bkasal]

Here, the question is not about MF or any other institutions, there are some exception… They have their own role to play in overall financial ecosystem.

However, the major focus I wanted to bring up is that Retail investors has edge if they learn and follow discipline that can create generational wealth. They been more in control and manage of own portfolio and journey towards financial freedom. As every individual has different financial position, goals, risk-appetite, time-frame and so forth…
Retail people MUST take informed decisions and what is BEST for them.
Thanks.