Let’s Start with Safal Niveshak
Just in case you missed any of this on Safal Niveshak over the last few days and weeks…
- Are you right because your stock moved up 200%? Answer here.
- Is the Sensex heading towards 30,000…40,000…100,000? Find out here.
- Follow these 5 simple rules of investing successfully in a Modi-fied India
“The Little Book that Builds Wealth” from Pat Dorsey is a wonderful book if you want to understand the concept of economic moats and how companies and their shareholders benefit from them. Here is an important excerpt from the book on the various ways to make money in stocks, and why moat investing stands out…
There are lot of ways to make money in the stock market. You can play the Wall Street game, keep a sharp eye on trends, and try to guess which companies will beat earnings estimates each quarter, but you’ll face quite a lot of competition.
You can buy strong stocks with bullish chart patterns or superfast growth, but you’ll run the risk that no buyers will emerge to take the shares off your hands at a higher price.
You can buy dirt-cheap stocks with little regard for the quality of the underlying business, but you’ll have to balance the outsize returns in the stocks that bounce back with the losses in those that fade from existence.
Or you can simply buy wonderful companies at reasonable prices, and let those companies compound cash over long periods of time. Surprisingly, there aren’t all that many money managers who follow this strategy, even though it’s the one used by some of the world’s most successful investors. (Warren Buffett is the best-known.)
Stimulate Your Mind
Here’s some amazing content I read during the week gone by…
- Akash Prakash of Amansa Capital answers if we have moved into a secular bull market.
- A ready-made nine-point checklist for value investors.
- Learn these four timeless lessons from the young Warren Buffett.
- The wonderful Jason Zweig answers if you set out deliberately and systematically to remake yourself into a great investor, how would you go about it.
- Before you ask what moat a company has, ask what is your moat.
- Learn how to apply Charlie Munger’s Human Psychology Checklist.
Face your fears head on.
Stop wasting more of your time, potential and energy (you may run out of these!)
Be kind to others, and to yourself.
Chief Poker – Poke the Box