Hi, starting a new thread here to cover investing quotations and ideas I read/think about in one place so people can benefit from it.
The basic idea would be to compile a list of interesting thoughts over a few days and then deliver them here for everybody to read and reflect. You can add whatever you read here too.
Hoping to see an amazing amount of participation here.
Thinkable Thoughts #1:
Something I thought about:
Smart investing really boils down to buying something today that many more people would want to buy at the end of your investing horizon.
As retail investors we don’t think about investing as something where there has to be a buyer when we sell and a seller when we buy, because the liquidity on most counters is extremely strong, however if you think of it in terms of a buying and selling exercise, it can give much more clarity on how you can make your processes better.
“The real money isn’t made in buying what other people like. It’s about buying what
others underestimate. Buying that kind of thing can be a lonely business”
Howard Marks
“Proper allocation of capital is an investor’s number one job.”
Charlie Munger
“Picking a winner is only half the battle won, real wealth gets generated when one allocates significant capital to the winning idea”
Charlie Munger
“If all you succeed in doing in life is getting rich by buying little pieces of paper, it’s a failed life. Life is more than being shrewd in wealth accumulation.”
Charlie Munger
Hi Value Pickr,
Happy New Year. I hope this year gets you closer to what you want to achieve in life and brings out the best for you in the investing world.
One thing I’ve realised for myself this year, is that I want to do something broadly in the business world rather than just being glued onto the markets as a major source for my life experiences and remuneration. But with that said, I would hope to speak to many people in the markets this year, make my things a little more trackable and efficient and lead into a future where I can have a more disciplined life.
Do write in your observations from last year or what you want to achieve this year. We’re all in this together.
‘Be “Stubbornly” Disciplined in the market, where participation is historic high. Temperament is the only edge.’
From Nirav Parikh
“Returns are not linear, and people get out of their winners just before they start to win because it is the darkest before dawn.”
“Emotional intensity is far less important in the long run than disciplined consistency.”
‘The most amount of money is made when a bad business moves towards becoming a good business, the second biggest amount of money is made when a good business turns towards becoming a great business.’
“If you don’t cringe when you look back 10 years ago at what you wrote, what you thought, how you invested, then you aren’t growing. Don’t beat yourself up judging yesterday’s mistakes with today’s wisdom. You grow, you get pruned back (mistakes), and regrow stronger.”
The biggest valuation increases in a bull market happen with futuristic companies. With the great optimism that accompanies fast moving bull runs, it is a new and promising future that receives better discounting over and above other more “normal” companies.
-Something i have been thinking about
“In most likelihood, all you need is -
-Some money as emergency fund
-1 term insurance
-1 health insurance
-2-3 high quality MFs
-10-12 high quality stocks (optional)
-Some debt (PPF, FD, liquid fund)
-Some gold (optional)
Personal finance is simple. Keep it that way.”
“Building a big position in the portfolio is the same as building trust in a relationship. It can’t be rushed. You need to experience how the management/business will react in good/bad times and how they treat you. Let the position earn its scale.”
I think this is the insight of the week for me, in a time where everybody is talking about positioning sizing because it is working well for them, I wanted to have a better process to decide which positions do actually become larger in my portfolio.
“You build your network, tools, screens, relationships like a spider builds a web. You keep building it out. Then one day something hits the web. You feel the tremor and you go look at what you caught. This is how the great ideas find you.”
I’ve often been frustrated by how long and frustrating this process of trying to build a framework for good ideas getting to you seems like, this analogy offers some solace and perspective on the entire process.
