Interaction with an Investor;
- Tuition Fees to the market is a must, aka Skin in the game.
- Whenever markets fall, go full scale into buying your favorite stocks.
- Macro indicators of economy domestic and international are very important to track.
- Have high equity allocation, that only will have the ability to move the needle in your lives financial independence.
- Continuous Learning is the key.
- Understanding Growth, ROCE, ROE, Debt, Promoter Feedback, Sector Tailwind, etc… helps in identifying good companies.
- Reading Quarterly results, Annual reports, and listening to Con-call is a must to understand companies.
- Whether a Stock is a Tennis Ball, or an Egg is what one must be aware, this awareness will come only with the understanding of the business.
- Exit Strategy is less discussed but is most important.
- When to take a Cash call and when to stay invested?
- Valuation of a company to be worked upon and then investment should be made.
- Knowing oneself is important as if you are a person who panics, then better to panic early in the market. This may have lesser negative impact on your Portfolio.
- Protecting drawdown during bear market is necessary.
- Questioning decisions/ understandings before investing; “What if you are wrong”?
- Future growth and Value growth of a company is to be looked for.
- Check before buying if Stock is priced in or still there is room for growth in it. PE, PE/PBV.
- Sectoral Tailwinds are important.
- Drawdowns are part of life.
-Earning Growth along with PE rerating creates multi-baggers. - Keeping Open mind
- Pattern recognition
- Study market leader of the sector to know what will work.
- Keep learning and sharing
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