Dear son

Letters to my son on stock markets.
The lessons. The mistakes. The rules I learned.

[Dear son @Lettersfromappa]

Dear son, before any letter about charts, before any letter about strategy — read this one.

[Dear son @Lettersfromappa]

@_keerthiika_3 Ajinkya

[Dear son @Lettersfromappa]

@InvestorOfJAMMU Yeah the opportunity that is there currently we may not get it often. Load up and wait for the bills to steer your portfolio to new highs.

[Dear son @Lettersfromappa]

Dear son,

If you remember only one rule from these letters, let it be this:

Wait for a stock to hit a 52-week high before you buy it.

This rule alone will save you from most of the wealth destruction retail investors suffer.

— Appa

[Dear son @Lettersfromappa]

@InvestorOfJAMMU I usually buy Nifty ETF whenever I see red monthly candles. This time I am loading up BANKBEES which are available at mouth watering valuations.

[Dear son @Lettersfromappa]

@Prakashplutus It is not like people want the market to go higher. They might have bought few stocks at crazy prices and sitting on handsome loss of down 20-30% and want the overall market to hit all time high so that they can exit at cost.

[Dear son @Lettersfromappa]

@DealsDhamaka TCS is always good at predicting.

[Dear son @Lettersfromappa]

@MaridhasAnswers DMK’s downfall started when they tried to arrest Maridhas for G square now Lottery for TVK?

[Dear son @Lettersfromappa]

@KobeissiLetter It all makes sense why FII have 91% in shorts right now in Indian market.

[Dear son @Lettersfromappa]

@WatcherGuru This is a reminder that market cannot always go up. Don’t ever think you’re missing out.

[Dear son @Lettersfromappa]

@Priteshagarwals @KobeissiLetter Gap down is gap down.

[Dear son @Lettersfromappa]

There is a certain amount of patriotism that we should limit ourselves to. Anything over it would sound like too much. India missed the bus of Industrial Revolution because British ruled us for 200 years. So to stand on par with the developed nations it will take a huge effort which India is not putting up right now but we are doing okayish.
But in a democracy we have the full rights to choose what we want and bringing up the patriotism angle is too far fetched.

[Dear son @Lettersfromappa]

@InvestorOfJAMMU I may agree with your first point but 20% EPS doesn’t seem to go well with the rising crude oil prices. The next quarter results will feel the impact of rising crude oil prices and if the war continues then it may get worse in the coming quarters.

[Dear son @Lettersfromappa]

@RamTeluguTrader I feel that should be part of investment. Personal investment. That’s the one which compounds faster than any instrument.

[Dear son @Lettersfromappa]

@vini546 Yes and the sad thing is people will get the fruits of it when the bull run is back.

[Dear son @Lettersfromappa]

@sumitkbehal The stock is recovering faster than an Ola scooter waiting at a service center for a spare part. Truly revolutionary.

[Dear son @Lettersfromappa]

@InvestorOfJAMMU Lower circuit in Nifty today?

[Dear son @Lettersfromappa]

@Finlo_com Yes we have long way ahead. Every penny matters.

[Dear son @Lettersfromappa]

13 crore Indians have registered to invest in stocks.
Of those, 6.1 crore also hold mutual funds.

That is roughly 9% of our population in the capital markets.

For perspective:
→ United States - 62%
→ Canada - 47%
→ Australia - 37%
→ India - ~9%

We are early. India has a long way to go.

Two ways to ride the next decade with a SIP:

The safer bet - Nifty 50.

The risky bet - a capital markets ETF. Exchanges, depositories, brokers, AMCs. If more Indians join the markets, these companies grow before any of the stocks they trade.

[Dear son @Lettersfromappa]

Institutions I mean big money. For example - Murugappa group has brought CG power when the stock was at 27-30 I guess now the stock price stands at more than 800. Big money creates the candle and if the stock price hits 52 week high, it means huge money has brought the stock.

Tiny bits - Murugappa group recently bought NACL and it is 2X from their buying price.