@royatirek

The best way to avoid bear markets is to refrain from investing. One of the famous quotes attributed to Charlie Munger is ” Tell me where I am going to die and I won’t go there” In stock markets, bear markets are part and parcel of the game. If you are too scared of them, or want to avoid them altogether better not invest on your own. Ideal thing in such a scenario would be to invest through SIP in a disciplined way for 10-15 years and hope for the best.

@Anand_Dharsandia has provided a good list of books and guidelines to follow with respect to your queries.

Most investors after years of experience will not be able to predict exact time of bear markets. So trying to predict them is a pipe dream.

I have been seriously investing in markets since 2008-09 and since then have faced many bear markets of varying intensity and duration and still have come up to fight another day. That’s the spirit to have if you are investing on your own. No one likes a bear markets but its tough to predict one and always get it right.

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

A comparative view point between FLAIR / DOMS / LINC:

a) GP-Margin / EBITDA-Margin / Inventory to sales / Receivables to sales:

b) Du-Pont ROE:

c) Cash Flows:

Disc: No holdings in any of the three.

“Also they will be more open to external growth now that it’s a 51% sub in terms of maybe allowing contract export to group to gain more sales…”

Can you explain a bit more for clarity?