📚 📈Investing Lessons and Mistakes-1 📚📉

It has been a while that I wrote my last blog. Now year  2021 is ending and like 2020 it was another eventful year in all aspects be it health, economy finance anywhere. I hope in 2022 we will have a happy ending of this long pandemic which have changed the entire world and lifestyle of the people.

However, I have learnt & still learning on the investing side in my whole financial journey esp in last 2 year. Thought of writing down my learning and mistake so that others can also be benefited from it in some or otherwise

Lets Discuss Leanings first

                                               Key Investment leanings

Be with like minded group - This was what Peter Lynch/warren buffet said It is always good to have good like minded investing people around who can discuss ideas, trends even share some stocks based on their research. It helps you all to find pro & cons (Thesis and anti thesis) of that particular sector/ stock . Most important is to avoid some bad investment. The best learning you can get is by having like minded people around you

Don't discuss bullshit, discuss ideas - I guess once Steve Jobs said " Creative mind discuss ideas and ideal mind discuss about people".  Avoid discussions with people who discuss about others / social political issues where they don't act only discuss as per their opinion. This is not helpful either to society or anyone. Discuss ideas(any) /trends going around you, any brands getting famous etc. This will not only help you but also enhance knowledge and in the hindsight will help society too.  

I only know that political social discussion with diverse mind people creates hatred while discussing ides bring harmony and open new avenues.

Keep Reading/learning - Keep learning new things that interests you even in your field. You may find a good investment idea or even may end up having your own business from your expertise. At least read one page per day. For investments read Earnings call transcript/ Annual reports/ management interviews / good books to change your mindsets. Learning never ends. Invest in knowledge. Listen podcasts/ audibles etc. Learn technical too for good entry and even knowing the exit if needed

Never chase returns, Chase the ideas/stories - Patience is the key to investment. Sometime you invest in ideas where story is cooking but other stocks move. Keep an eye on these stocks and happenings around them. When these ideas ripe then you can get mind boggling returns. Mind that you will not get fruitful results in all stocks but your study will fetch you better returns than others. Few examples in Indian context -  Goldiam intl, Tata Elxsi, Deepak Nitrate, Alkyl Amines, Apollo hospital, Pix transmission and internationally MSFT,AMD, NVIDIA, ASML &  many more where patience has rewarded investors by leaps and bounds. 

Have a forward looking thinking not backwards.

Asset allocation and Diversification - Don't put all of your money in one asset diversify it, have some intl exposure as well. Debt, Gold, Real estate and Stocks.

Never act on news -  Wise investors are unfazed by news flow. Stocks may move suddenly on any news. Keep an eye and verify. Sit calmly and enjoy. Respect your discipline.

Anchoring Bias - We usually get biased with the investment. Sometime we follow the herd. Sometime we by our own perception think stock price is high. Rather than studying/enquiring about that story we just leave it and find later that again getting multiplied. Quality never gets cheaper.

Example - Few people called me for stocks like IRCTC/I EX in India and Google/ Nvidia in US that they are costly.. I told them the story behind them. They are doubled tripled after that.. Same happened for Index. 

Also, avoid buying at 52 week or at lifetime lows and then selling at all time highs This is the most common mistake an investor do

NEVER FOLLOW TIPS - You may get good/bad tips. Even I do follow sometime but always realised it does not work as you don't know the story when it will unfold or is fluke. If you can't study on your own then invest in Mutual funds. You are likely to invest in dead/bad or low yielding  stocks and ultimately your folio in all will under perform.

Always keep in mind " EXIT is MORE IMPORTANT than ENTRY"

                                         For Key Investing Mistakes Visit Here