Read on Twitter
1/n
Just finished “Bulls, Bears and Other Beasts” by @sant0nair. An amazing book about Indian stock market. Apart from fabulous anecdotes, the book contains timeless wisdom on markets/investing. A thread:
Just finished “Bulls, Bears and Other Beasts” by @sant0nair. An amazing book about Indian stock market. Apart from fabulous anecdotes, the book contains timeless wisdom on markets/investing. A thread:
2/n
"There are plenty of rags-to-riches stories that get talked about often. What doesn’t get publicized as much are the riches-to-rags stories, which far outnumber the success stories. People get carried away, and learn the truth the hard way." Written for 1988, so apt today.
"There are plenty of rags-to-riches stories that get talked about often. What doesn’t get publicized as much are the riches-to-rags stories, which far outnumber the success stories. People get carried away, and learn the truth the hard way." Written for 1988, so apt today.
3/n
“More than stock market professionals, company promoters used to speculate heavily in their own shares”
Exactly why management quality should be foremost factor in longterm investing.
@FI_InvestIndia
“More than stock market professionals, company promoters used to speculate heavily in their own shares”
Exactly why management quality should be foremost factor in longterm investing.
@FI_InvestIndia
4/n
“Stock market history is replete with players who went bankrupt after having made the error of thinking they had become bigger than the market.”
Even as smaller players, the markets will chew and throw us out the moment we develop ego.
“Stock market history is replete with players who went bankrupt after having made the error of thinking they had become bigger than the market.”
Even as smaller players, the markets will chew and throw us out the moment we develop ego.
5/n
“Some rules in the market never change. And one of them is that nobody can ever catch the top or bottom. Besides, to make a good profit, you need to buy cheap. This happens only when there is despair all around.”
Referred to 1996. Proved so right in March-April 2020.
@dmuthuk
“Some rules in the market never change. And one of them is that nobody can ever catch the top or bottom. Besides, to make a good profit, you need to buy cheap. This happens only when there is despair all around.”
Referred to 1996. Proved so right in March-April 2020.
@dmuthuk
6/n
“The faster the climb, the harder the fall.”
Consistent compunders >> Flavor of season.
@Vivek_Investor @BaluGorade
“The faster the climb, the harder the fall.”
Consistent compunders >> Flavor of season.
@Vivek_Investor @BaluGorade
7/n
“Almost 99% of the time, stocks are quoted below or above their true worth.” Markets are the collective conscience of the participants. Human perception and hence inefficiencies and extreme reactions are the norm. Exuberance<->Fear
“Almost 99% of the time, stocks are quoted below or above their true worth.” Markets are the collective conscience of the participants. Human perception and hence inefficiencies and extreme reactions are the norm. Exuberance<->Fear
8/n
3 days before the US stock market crash of 1929, the economist Irving Fisher said, ‘Stock prices have reached what looks like a permanently high plateau.’
Roaring bull run leads to delusion for even the most experienced participants. A fair warning for now. @WeekendInvestng
3 days before the US stock market crash of 1929, the economist Irving Fisher said, ‘Stock prices have reached what looks like a permanently high plateau.’
Roaring bull run leads to delusion for even the most experienced participants. A fair warning for now. @WeekendInvestng
9/n
“Indiscipline has cost even the best of traders a lot of money.” True for longterm investing. Process/temperament >> Outcome/IQ
@VJ_Rabindranath @drvijaymalik
“Indiscipline has cost even the best of traders a lot of money.” True for longterm investing. Process/temperament >> Outcome/IQ
@VJ_Rabindranath @drvijaymalik
10/n
“A bull market does not start till the last bull hass given up hope and a bear market doesnot start till the last bear has given up hope.”
A beautiful adage to keep our sanity on both extreme situations.
@VijayKedia1
“A bull market does not start till the last bull hass given up hope and a bear market doesnot start till the last bear has given up hope.”
A beautiful adage to keep our sanity on both extreme situations.
@VijayKedia1
11/n
“Bull markets have no tops and bear markets have no bottoms.”
This makes market timing a dangerous game as markets can remain irrational longer than one can remain solvent. Have a system in place for corrections and run-ups. Remember that this too shall pass.
@contrarianEPS
“Bull markets have no tops and bear markets have no bottoms.”
This makes market timing a dangerous game as markets can remain irrational longer than one can remain solvent. Have a system in place for corrections and run-ups. Remember that this too shall pass.
@contrarianEPS
12/n
“Returns from the tried-and-tested frontline stocks may not be spectacular, but over a longer period of time they are both handsome as well as consistent.”
Creating wealth peacefully with known quality >> Getting a heart attack betting on turnaround/chor promoters. @dmuthuk
“Returns from the tried-and-tested frontline stocks may not be spectacular, but over a longer period of time they are both handsome as well as consistent.”
Creating wealth peacefully with known quality >> Getting a heart attack betting on turnaround/chor promoters. @dmuthuk
13/n
“The market moves on sentiment, and yet is unemotional.”
Very important to not get emotional about stocks. Have a steady and flexible process.
“The market moves on sentiment, and yet is unemotional.”
Very important to not get emotional about stocks. Have a steady and flexible process.
14/n
“Promoters often forget that a healthy share price flows from the strength of their core business and not the other way around.”
Equally important for us, as investors, to keep in mind and not get carried away.
@Vivek_Investor @FI_InvestIndia @RichifyMeClub @Kiran24Rajput
“Promoters often forget that a healthy share price flows from the strength of their core business and not the other way around.”
Equally important for us, as investors, to keep in mind and not get carried away.
@Vivek_Investor @FI_InvestIndia @RichifyMeClub @Kiran24Rajput
15/n
“The law of averages spares nobody, however skilled or lucky a person may claim to be.”
Be humble in face of gains and resilient in face of losses. @position_trader
“The law of averages spares nobody, however skilled or lucky a person may claim to be.”
Be humble in face of gains and resilient in face of losses. @position_trader
16/n
“Only posterity will tell.”
The hunt for multibaggers is futile. Focus on process and consistent, steady compounding. In a decade or two, each of us will have our own stories of 100x or more.
@dmuthuk @Gautam__Baid @varinder_bansal
“Only posterity will tell.”
The hunt for multibaggers is futile. Focus on process and consistent, steady compounding. In a decade or two, each of us will have our own stories of 100x or more.
@dmuthuk @Gautam__Baid @varinder_bansal
