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My Thoughts on Investing in 2017, 2018, and Beyond (Video)

I was on ET Now yesterday to share my thoughts on investing in 2017 and 2018. While I managed to duck their questions on specific stocks, you can see the nervousness on my face even when I talk about a few old names. 🙂

Here is the video of the chat (click here if you are not able to watch the video below) –

Here are some notes from my talk that I prepared just to make the task a bit easier for you –

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Circle of Competence: What and Why

Tom Watson [the founder of IBM] said – “I’m no genius. I’m smart in spots and I stay around those spots.”

Charlie Munger and Warren Buffett define these spots where you are smart as your ‘circle of competence’ – the area beyond which you must not venture out if you were to make effective, profitable investment decisions.

I have talked about the circle of competence numerous times in my posts and presentations. But if you still have doubts on this concept, its relevance, the dangers of not adhering to it, when do you know something is within your circle, and how to grow that circle, here is an illustration that, to the best of my knowledge, may help you with the answers.

Circle of Competence - Safal Niveshak
Click here to download a larger image

Let me know if you think I may have missed out on anything related to the subject in the above illustration.

P.S. You may read a detailed explanation on ‘circle of competence’ here.

The 39th Lesson

Life’s passing by too fast, or so it seems. I complete 39 years in my present state of existence today. That’s 14,245 days or around 57% of the average life expectancy of an Indian male. While spiritualists would want me to believe that I have existed from anadi (before the beginning of cosmos), and will […]

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What We Are Listening To: Our Favourite Podcasts on Business, Investing, and Learning

If you don’t know who Charlie Munger is, then here’s a quick introduction. He’s a billionaire and he’s 93 years old. He’s not the oldest and he is not the wealthiest but when it comes to being the “oldest billionaire”, he doesn’t have any competition. In other words, he has the two most coveted things […]

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My Thoughts on Value Investing, Personal Finance, and Life (Podcast)

I recently had the opportunity to get interviewed by Paisa Vaisa, an audio show/podcast based on topics around money, investing, and personal finance. In the interview, I discuss my background, what got me to the stock market, thoughts on value investing, buying and selling stocks, core rules of personal finance, and my way of living […]

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Latticework of Mental Models: Manufactured Memories

Yesterday when I logged into my Facebook account, it showed a picture I had posted six years back. In the frame, I was having lunch with an old school friend. It brought a smile on my face. Interestingly, I had completely forgotten about the lunch. I just couldn’t remember being present when that picture was […]

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The Biggest Killer of Investment Returns

Somewhere, right this very moment, an investor you know of is having more fun than you. He has just made a lot of money – more than you – thanks to the graphite electrode stock he owns. And you just missed out on it. Not just that, you realize you have missed out on so […]

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16 Investing Lessons from a Superinvestor the World Forgot

What do you call an investor who earned 16% per annum on average over a 47 year period – that’s a 1,070-bagger – and is not called Warren Buffett? What if I told you that this investor… Did not care about corporate earnings Rarely spoke to managements and analysts Did not watch the stock market […]

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