Stream

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.

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

Investing/Stock Market

• (850 words / 3 minutes read) We are fortunate to be living in an era where we have all the teachings of wise investors available to us. As compared to 19th century, it has become much easier and cheaper for small investors to participate in the growth of businesses through stock market. Jason Zweig, in his recent article, reminds us some of the greatest words of investing wisdom that have been spoken in the past century. Zweig writes –
  

  You don’t need to have known these people to be grateful for their wisdom. As the biologist Richard Dawkins pointed out in a lecture in 1996, many of us today know more about the world around us than Aristotle, the greatest mind of his age, did more than 2,300 years ago: “Science is cumulative, and we live later.

  [Read more…] about Safal Niveshak Stream – December 3, 2016

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.

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

Investing/Stock Market

• (3 minutes watch) Recently, government of India took a drastic step to invalidate the Rs. 1000 and Rs. 500 currency notes. We don’t have any opinion on how effective or ineffective this demonetization step would be in addressing the problem of black money and fake currency. However, it would be very interesting to see the unintended (positive and negative) consequences of this policy. One immediate effect was that people started hoarding Rs. 100 notes. Valid currency notes (1000s and 500s) suddenly turned into bad money and it drove out the good money (lower denomination notes i.e. 50s and 100s), perhaps temporarily, from the circulation. This is known as Gresham’s law. It is a monetary principle stating that “bad money drives out good.” Watch the latest episode of Latticework of Mental Models video series on Gresham’s Law.

  Click Here if you can’t see the video above. [Read more…] about Safal Niveshak Stream – November 26, 2016

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.

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

Life/Learning

• (970 words / 4 minutes read) Nilanjana Roy discusses the concept of being a “time-millionaire”, a measure of how much person has control over his or her time. It’s not so straightforward to draw an analogy between time and money in the bank. However, the importance of having control of one’s time cannot be emphasized enough when it comes to understanding human happiness…
  

  The American writer and blogger Mason Currey tracked the daily routines of 161 highly creative people, from Twyla Tharp and Agatha Christie to Matisse and Benjamin Franklin, in Daily Rituals: How Artists Work. Despite wide variations in working styles and habits, some patterns emerge. The brightest humans find work satisfying in itself, continuing to be productive long after they’ve achieved financial stability; they tend to work for a few hours every day, with the odd marathon session.

  The most happily successful people you might imagine — Warren Buffett, for example — have the knack of enjoying what they do for work, and take time off to play bridge, learn the ukulele, or whatever. Although Currey didn’t explicitly say this, it also becomes clear that highly creative people exercise iron control over their time — and enjoy spending time, perhaps as much as we’re conditioned to think of enjoying spending wealth.

  [Read more…] about Safal Niveshak Stream – November 19, 2016

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.

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

Life/Learning

• (1250 words / 6 minutes read) The ability to expand your mind and strive for lifelong learning is more critical to your success than you think. Don’t give up on lifelong learning. Ever. Research shows that it pays beyond the skills you acquire. More than ever before, a challenged, stimulated brain may well be the key to a vibrant later life. There are a few skills that are hard to learn but pay off for the rest of your life. Like the skill of adaptability…
  

  We live in ever-changing world which is unlikely to ever slow down. So, what mattered yesterday (e.g. skill, knowledge, social circle, etc.) very much so might not be worth a dime tomorrow. Change used to be slow and incremental: now it is rapid, radical and unpredictable.

  Adaptability enables us to dwell on new circumstances and stay on top of the situation. Of course, this skill is best when combined with insight, giving us fresh perspective before the change itself. Growth depends on how adaptable you are. To stay relevant, most companies will need people who can change with time.

  [Read more…] about Safal Niveshak Stream – November 12, 2016

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.

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Some nice stuff we are reading, watching, and observing during the middle of this week…

Investing/Stock Market

• (1700 words/7 minutes read): It’s said that there’s very little we can learn from successes for studying successful people is fraught with survivorship bias. However, one shouldn’t outrightly reject the idea of looking at methods of successful because it does have some value. John Huber in his latest post on the competitive advantage of an owner-operator writes –
  

  …the risk of succumbing to survivorship bias is a risk worth taking. I’d rather risk that bias in exchange for the reward of potentially learning something useful from these success stories…They key is trying to reverse engineer their success while simultaneously being aware of the inherent bias can occur when analyzing these situations…. So it’s good to be aware of bias (hindsight, survivorship, etc…), but it’s not worth letting those biases restrict you from trying to learn why something or someone became so successful.

• (3 minutes watch): Here’s the next episode of Latticework Video Series. In this video we explain a very important mental model from the field of Statistics, called Mean Reversion, and what investing lessons one can draw from this big idea. Click here to watch the video. [Read more…] about Safal Niveshak Stream – November 9, 2016

Some nice stuff we are reading, watching, and observing during the middle of this week…

Investing/Stock Market

• The long run is just a collection of short runs, writes Morgan Housel…
  

  …value is ultimately created in the long run. That’s where scale takes off and compounding works its magic – over years and decades, not months and weeks.

  The key is recognizing that the long run is just a collection of short runs, and capturing long-term growth means managing the short run effectively enough to ensure you can stick around for a long time.

• In 2011, Seth Klarman explained the psychology necessary to be a good value investor, in an interview that he did with Charlie Rose. In this interview, Klarman says, “Investing is the intersection of Economics and Psychology.” He added…
  

  The economics, the valuation of a business is not that hard. The psychology, how much do you buy, do you buy at this price, do you wait for a lower price, what do you do when it looks like the world might end. Those things are harder.

  [Read more…] about Safal Niveshak Stream – October 19, 2016

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

Investing/Stock Market

• If I could reveal just one secret of sensible, successful investing (which isn’t a secret, by the way), it would be…
  
• Buying stocks when the market collapses is far harder to do than to imagine. But the great economist — and equally great investor — John Maynard Keynes waded into the wake of the Great Crash of 1929, when US stocks fell by more than 80% from peak to trough. His experience should teach all investors the importance of preparation, courage and patience…
  

  Keynes understood, as did his contemporary, the American value investor Benjamin Graham, that bear markets are so unpredictable that reliably sidestepping them is nearly impossible — and that the pain of losing money is nearly unbearable.

  Still, Keynes knew, barging into bear markets to buy, rather than trying to sidestep them, is the way to prevail. Since, over the long run, stocks tend to go up more than they go down, one of the greatest advantages an investor can have is the gumption to buy stocks aggressively in falling markets.

  [Read more…] about Safal Niveshak Stream – October 15, 2016