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Archives for December 2017

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 exist till ananta (infinity), I see thirty-nine years as a good enough time to find some meaning in one’s life. At least, my rapidly greying hair and receding hairline help me realize that.

Now, while it amazes me that I’ve been around that long — I feel like I’ve barely begun.

I’m not usually one to make a big deal about my birthday, but as always, it has given me an opportunity to reflect.

So, like I have done over the past three years – see here, here, and here – let me share one of the key life lessons that have guided my life over the years, and two small but wonderful books that have brought this lesson to fore every time I have read them, including when I read them this year.

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