value investor

Important points to be remembered in value investing…

    1) Read books from successful investors.

    2) Stop watching TV News Channels.

    3) Nobody knows the future, so stop asking.

    4) Crazy people of like nature enforce yet conceal each others’ craziness. Find your craziness and tone it to saner proportions.

    5) Average common man will buy more in peaks and less in trough.

    6) Excesses in under and over valuation is an enduring theme.

    7) Find High Growth Companies in Low Growth Industries.

    8) Stop Finding companies in High Growth Industries.

    9) Find out the type of investor you are, someone who buys on borrowed tips of one who researches on their own.

    10) Thinking in 3-5 year time frames and not 3-4 months / quarters.

    11) Understand the business, competitive forces and ability to predict future of the business.

    12) Stop thinking solely in PE terms.

    13) Bet on four stocks at a minimum, don’t over concentrate, don’t over diversify.

    14) Think independently. You will outperform the majority.

    15) Get rich slow-but-sure, don’t buy lotto, don’t play in casino, don’t gamble, don’t leverage.

    16) Make money and stock market both your slave, make money and forget about them.

    17) Never retire, work incessantly.

    18) Money is means and not an end. Money is a slave to free you from your daily routine…

    19) Admit mistakes.

    20) Learn from own and others’ mistakes

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