GUEST POST Today’s post is by Manish Dhawan, founder of Mystic Wealth and my co-host at Stoic Investing Podcast. I know of very less people, who are as conscious and stringent on Risk management, as Manish is. He follows a very different style than mine. He is a proponent of Trend Following against my Value […]
Risk Management : Art of Living another day !!! Read More »
To remove all doubts, let me first come out and say this clearly: Yes, I am a ‘Value’ Investor. No, I don’t invest only in low PE, low PB stocks and Growth is an essential component of ‘Value’ for me and most importantly, I absolutely cherish Warren Buffett Letters (and many other Investor letters which I intend to
Wait: Don’t Read Warren Buffett Letters!!! Read More »
At the start of my investment career, few thoughts which made obvious sense to me were received from few amazing resources of knowledge. Besides the usual Buffett letters and Graham’s Security Analysis and many other books, a favorite of mine was ‘Common Stock and Uncommon Profits’. Philip Fisher always referred to Scuttlebutt ( Original term
Scuttlebutt with Paul Lountzis Read More »
Let’s assume that you own a hospital (say Hospital C). You have been doing well in your market and currently have the third largest market share, and you are thinking of installing 500 slice CT machine (because both your two major competitors (Hospital A and Hospital B have one each) and it will cost you
Sheep in Wolf’s clothing: An asset’s true character Read More »
It has been quite a while. In these 2 long years, I went from working for a fund to start my own advisory firm along with an excellent investor and most of the time has been spent understanding businesses and reading annual reports. Few years back, I thought of starting a series of articles called
Octavo Pansophy #1: James Gipson Read More »
Imagine the following scenario. You are sitting at your work desk sipping your coffee when your boss comes and offers you the following deal. He offers you a fixed bonus of Rs 1 crore for the year. Besides this, he offers you a variable bonus. For the variable bonus, he asks you to either
Human Misjudgment : Deprival Super Reaction Syndrome Read More »
Authority, authority!” they shout Whose minds, not large enough to hold a doubt, Some chance opinion ever entertain, By dogma billeted upon their brain. ~ Ambroce Bierce There is one thing we all have been taught from very beginning and that is to accept what our elders tell us; to accept their authority. To do
Human Misjudgment : Authority Read More »
Today I discuss the human trait that, despite all its glory, has lead to disastrous consequences for many individuals and societies and specifically in investment world. In fact, if there is one trait which, even though I do frequently observe in successful people in various other human endeavors, is very rare to find in
Human Misjudgment : Endowment Effect Read More »
Few years back, while buying a book on Amazon, I ended up buying two more books along with the intended purchase. It was due to a feature of Amazon, which tells you what other buyers have bought along with the book you are trying to purchase. I never heard of these books earlier but
Human Misjudgment : Social Proof Read More »
“I hated discussing ideas with investors, because I then became a defender of the idea and that influences your thought process.” ~ Michael Burry (The Big Short) I’m sure this is one statement most of you will relate to. We often discuss stock ideas which, we understand, are contingent to future events but if we
Human Misjudgment : Confirmation Bias Read More »
