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You are here: Home / 2021 / Archives for March 2021

Archives for March 2021

The Sketchbook of Wisdom: Buy Now

My new book – The Sketchbook of Wisdom: A Hand-Crafted Manual on the Pursuit of Wealth and Good Life – is flying off the shelves (despite its 800-gram weight). 🙂

I have already despatched 1150+ copies of the book across India, plus in process of sending off another 200+ copies internationally.

Here are just a few reviews the book has received –

The book is now also available on Amazon India, so if you want fast delivery, please order from there.

But if you want an autographed copy and are fine with delivery in 5-7 days within India, and 25-30 days internationally, click here to order straight from my website.

And why do I take extra time to deliver the book when ordered through my site? Here’s why –

Packed with 50 timeless ideas from Lord Krishna to Charlie Munger, Socrates to Warren Buffett, Lao Tzu to Nassim Taleb, and Steve Jobs to Naval Ravikant – as it applies to our lives today, The Sketchbook of Wisdom is a manual on virtue, happiness, and the pursuit of wealth and good life.

Please email me at vishal@safalniveshak.com if you have any questions about the book.

With respect,
Vishal

No Stock is Safe

The Sketchbook of Wisdom Now on Amazon: My new book – The Sketchbook of Wisdom – is now available on Amazon India. Packed with 50 timeless ideas, the book is a manual on virtue, happiness, and the pursuit of wealth and good life, and has already been bought across 30+ countries within 15 days of launch. Click here to get your copy on Amazon or buy on my book website.

* * *

The bulls may want you to believe this, but no stock is safe.

There are businesses that may remain good (earning return on capital greater than cost of capital) for some time, maybe a long time, but you must not attach infinite values to them.

This is because high returns attract competition, generally causing return on capital to move towards the cost of capital. While such companies may still earn excess returns, but the return trajectory is down.


Everything in this world, after all, is momentary. So, your best bet is to just stick with quality (even that is momentary, just for longer moments that allows time for compounding to work its magic).

The good thing about high-quality stocks is that you can pay up for them (never overpay), expensive looking prices, and still do well till the underlying businesses remain good.

With poor quality, most probably, you have no hope.

As Charlie Munger says –

Over the long term, it’s hard for a stock to earn a much better return that the business which underlies it earns. If the business earns six percent on capital over forty years and you hold it for that forty years, you’re not going to make much different than a six percent return – even if you originally buy it at a huge discount. Conversely, if a business earns eighteen percent on capital over twenty or thirty years, even if you pay an expensive looking price, you’ll end up with one hell of a result.

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