Archives for 2017

Safal Niveshak Stream – January 7, 2017

January 7, 2017 | Reading Time: 9 minutes | 3 Comments |

Note to Readers: In Stream, we suggest worthwhile reading material on a variety of topics, not all of which are directly related to investing. Some of the articles require you to be paid subscriber of those sites. However, it is often possible to read such articles by going to Google News and searching for the article’s title.

Some nice stuff we are reading, watching, and observing at the start of this weekend…

Life/Learning

(930 words / 4 minutes read) Meet the ‘James Bond of Philanthropy’ who has given away the last of his fortune…

Nearly five years ago, Charles F. Feeney sat in a cushy armchair in an apartment on the east side of Manhattan, grandchildren’s artwork taped to the walls, and said that by the end of 2016, he was going to hand out the last of a great fortune that he had made.

Altogether, he had contributed $8 billion to his philanthropies, which have supported higher education, public health, human rights and scientific research … His remaining personal net worth is slightly more than $2 million. That’s not quite broke, by any standard, but it is a modest amount for a man who controlled thousands of times as much wealth. He and his wife, Helga, now live in a rented apartment in San Francisco. “You can only wear one pair of pants at a time,” Mr. Feeney has said.

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10 Qualities of Great Investors

January 6, 2017 | Reading Time: 18 minutes | 6 Comments |

One of the first lessons I learned from my Yoga teacher was what she told me during my first class – “Yoga isn’t about rapid movements but long pauses. Slow down, calm down, don’t hurry, and trust the process.”

The thing about yoga — or any exercise — is that there isn’t a comfort zone. But if you have a sound process, and practice it diligently, over time it starts to work for you.

The act of investing your money, as I realize, isn’t much different from practicing Yoga. A superior process and greatness often go hand in hand in yoga, and also in investing. For serious investors, thus, it’s wise to learn to trust the process that generates winning investment results.

I came across one such time-tested process framework recently while reading Michael Mauboussin’s “Reflections on the Ten Attributes of Great Investors.” Mauboussin is a Managing Director and Head of Global Financial Strategies at Credit Suisse, and author of some amazing books like The Success Equation and More Than You Know. He is one successful value investor, and thus the process he has laid out in his note is a great help for any serious investor seeking a winning investment process.

Here are my reviews of the ten attributes Mauboussin has laid out in his note.

Spotlight: An Investors’ Disease Called Rhinophobia

January 5, 2017 | Reading Time: 14 minutes | Leave a Comment |

A lot of us suffer from the temptation of buying stocks or mutual funds as soon as we have some cash in the bank. Beware! It could be a symptom of a contagious disease called Rhinophobia.

“All of the humanity’s problems stem from man’s inability to sit quietly in a room alone.” ~ Blaise Pascal

“There is an itch to do things, particularly when you haven’t done anything in a while.” ~ Warren Buffett

“Dude! These bank guys have suddenly started giving me too much attention,” my friend told me. He recently had a cash windfall when his startup was acquired by one of India’s leading e-commerce company.

“Of course they would. You are a rich client for them now,” I told him.

“Earlier I had to run from pillar to post to get even the basic account details updated. But now they are after me like anything. Quite a few people from different departments in the bank have approached me and offered their advice for investing my money,” he complained.

“It’s better to stay away from these advisors. They’re the agents of Rhinophobia,” I warned.

“Rhinophobia? Never heard of it before. Sounds like a disease,” he looked at me with furrowed brow.

“It’s an investor’s disease meaning the dread of ever having any cash. These so called expert advisors will convince you that having un-invested cash in the bank is the biggest sin an investor can make,” I explained.

“Sounds interesting. You should write about it in your Value Investing Almanack,” he suggested. I haven’t been in touch with him since some time so I don’t really know if he heeded to my warning about staying away from his bank’s advisors. However, I took his advice seriously. So here I am sharing my thoughts on Rhinophobia.

7 Acceptances (Not Resolutions) to Live By in 2017

January 2, 2017 | Reading Time: 3 minutes | 8 Comments |

I wish you a very happy, healthy, peaceful, and fulfilling 2017.

Life is short (it’s already almost six years since I started Safal Niveshak), so let me not waste another moment and thank you for being here for me.

As we begin 2017, let’s not start with New Year resolutions that anyways don’t last till 5th of January. Let’s start with some acceptances that you should come to terms with in 2017 and beyond.

Print what follows below – Your Note of Acceptance as an Investor – and look at it every day. It might help you deal better with the reality of the investing world.

Here it goes…

[My Note of Acceptance as an Investor]
I ACCEPT THAT…

I will act stupid and envious at times and make mistakes, how much ever intelligent I am, and whatever resolution I make to avoid all mistakes this year.
I, or anyone else, have no clue about the impact of macroeconomic or socio-political events on my investments.
I, or anyone else, cannot predict the future of markets with any degree of accuracy, however certain things look like.
I will lose a lot of money over time if I invest on tips, in bad businesses, with bad managements, and in expensive stocks.
I may create wealth from stock market in the long run only if I practice patience in owning good businesses, not when I chase multibagger returns.
Luck will play an important role in my investing, and especially when I make high returns in quick time.
However good my investment process is, the outcome at times may not be to my liking.

Finally, it’s good to admit and accept that the future is inherently unknown and unknowable, and that there is no point blaming “uncertainty” for your investment mistakes and losses. Relax, and learn to appreciate the thrill of finding out what happens next. That’s the best part of being a stock market investor.

What you can control is your own behavior – and only to a certain extent – and how you respond to whatever happens around you. For all things outside your control – including return on your investment – there is no point fearing the future.

Stay happy, healthy, and peaceful.

Happy New Year!

P.S. The idea of this post comes from here.