Free Stock Analysis Excel

What You Need to Succeed in Investing (Hint: It’s Not Genius Brain)

“Hey Vishal, have you read about how Albert Einstein lost so much money in the stock market?” asked my friend Ravi as we met for dinner over the weekend.

“Yes Ravi,” I said. “In fact, he lost most of his winnings from the 1921 Nobel Prize in the stock market crash of 1929.”

“Wow!” Ravi exclaimed. “And we are talking about one of the genius minds to have ever walked this planet.

“Right Ravi. And I’m sure you’ve also heard about Mr. Newton, who was wiped out while chasing the stock market bubble in 18th century England.”

“Yes Vishal, you only told me about Mr. Newton’s misdoings when we met a few months back.”

“Sometimes I fail to understand,” Ravi continued, “how men with such high levels of intelligence fail at such petty things as the stock market, even when you hear of investment stories about individuals who’ve made fortunes because of exceptional insights or sheer genius!”

“Because, my dear friend, the best rewards in investing don’t generally go to investors with the smartest brains but to those with the strongest stomachs.”

“Stomach? Are you serious?”

[Continue Reading…]

5 Lessons on Life & Investing from Guy Spier’s Education of a Value Investor

Once upon a time, there was a young man who got his dream job in the financial services industry, thought he could make it big one day and worked hard at it, then got disillusioned and disgusted by what he saw around, and finally quit to live a life of greater peace and fulfillment, while pursuing his passion in value investing.

If I had not read Guy Spier’s The Education of a Value Investor, and someone told me this story, I would have believed it was mine.

This is truly my story, but Guy has captured this beautifully in his wonderful book, which I completed reading recently.

Of course, Guy gas written about his personal story, but it resonated so much with me that I have kept this book in my must-read book advisory list for any budding value investor.

Of course, there are great differences between me and Guy –

  • He studied at Oxford and Harvard while I studied at obscure colleges;
  • He won a lunch date with Warren Buffett (jointly with Mohnish Pabrai, at a cost of US$ 650,000), while I continue to dream of a visit to Omaha to meet the Oracle some day;
  • He started and ended his career at an investment bank, and I did it with an independent research house.
  • He now manages multi-million dollars, while I barely manage to manage my own little savings. 🙂

Anyways, coming back to Guy’s story and his book, as I mentioned, I could relate to a lot of his experiences, thoughts, and lessons. I have pulled out just five of them that have guided me well.

These thoughts not only hold importance in investing but in life as well. In fact, I find Guy’s book amazing because it talks less about value investing rules and more on a value investor’s character development.

In Guy’s own words…

…this book is also about the inner game of investing, and by extension, the inner game of life. As I’ve come to discover, investing is about much more than money. So as your wealth grows, I hope you will also come to realize that the money is largely irrelevant. And what you will want to do with the bulk of your wealth is give it back to society.

So, here are those five meaningful thoughts that Guy writes about in his book, which I believe serve a great learning for most people aspiring to find a greater meaning in life and become better as value investors.

[Continue Reading…]

7 Secrets of Warren Buffett’s Success (as per Charlie Munger)

In the 2008 shareholder meeting of Wesco Financial, a shareholder asked Charlie Munger to describe what caused Warren Buffett’s success. “His success…is a lollapalooza,” Munger replied – a confluence of factors moving in the same direction. Munger outlined the following seven key factors which combined together to cause Buffett’s success – Mental aptitude (Being seriously […]

[Continue Reading...]

My Interview with Farnam Street’s Shane Parrish

Shane Parrish is the curator behind Farnam Street, a website aimed at mastering the best of what other people have already figured out. Shane is the founding partner of Syrus Partners, a holding company that acquires and operates businesses in North America. Before Syrus, Shane worked as an executive in the Canadian government, where he […]

[Continue Reading...]

A Guide to Getting Good at Dealing with Stock Market Chaos

Imagine it’s 2020. Some genius political scientist in collaboration with a computer wizard has developed a flawless algorithm that can be marketed as a revolutionary predictor. These geniuses offer their services to the United States President Donald Trump. In return for a generous down payment, they tell Mr. Trump that according to their forecasts, a […]

[Continue Reading...]

Of Bad Businesses, Unethical Managers, and Stock Market Volatility

“I’m fast losing hope in this world!” my friend Ravi exclaimed as we started talking over desserts after our last weekend lunch. “So soon?” I asked him. “What happened?” “Are you reading newspapers these days Vishal? Or are you still abstaining from them?” “I still don’t read newspapers, Ravi. But tell me what’s the news […]

[Continue Reading...]

Process, Practice, Perseverance

Have you ever wondered why a doctor’s clients are called ‘patients’? Even a more interesting question, why do doctors call their work as ‘practice’? Well, one of the reasons is that you can’t become a good doctor without practicing what you learn in textbooks. For that matter, any work done under any profession is nothing […]

[Continue Reading...]

Lesson from a Dozen Angry Men

In June 2016, I got the opportunity to attend Prof. Sanjay Bakshi’s workshop in Flame University. Prof. Bakshi’s style of teaching is remarkably unconventional. He uses a lot of images, videos and stories to explore ideas. Such method serves three purposes. First, unlike traditional classroom lectures, Prof. Bakshi’s classes, from start to finish, are very […]

[Continue Reading...]