Since the market has been falling, we should remember these important teachings from ace investors:
1. John Templeton - The time of maximum pessimism is the best time to buy and the time of maximum optimism is the best time to sell.
2. Benjamin Graham - The investor's chief problem and even his worst enemy is likely to be himself.
3. Warren Buffett - Be fearful when others are greedy and greedy when others are fearful.
4. Peter Lunch - In the stock market, the most important organ is the stomach. It is not the brain.
5. John Maynard Keynes - The markets can remain irrational a lot longer than you and I can remain solvent.
6. Rakesh Jhunjhunwala - Growth in India is not a sprint. It is a marathon.
7. Warren Buffett - The stock market is a device for transferring money from the impatient to the patient.
8. John Templeton - This too shall pass.
9. Rakesh Jhunjhunwala - Invest in a company. Not a stock.
10. Radhakishan Damani - If you are right about the business, you will make money. The market will eventually realise the value.
How I’ve been picking stocks over the past few months 👇
Whenever I come across a stock, I first try to understand the fundamentals of the business.
My process usually includes:
• Listening to or reading the concall
• Understanding the management
• Looking at the investor/shareholding profile
• Studying the business and other important fundamental factors
But one thing that has become equally important in my process is Technical Analysis.
I check:
• Is the stock near its 52-week high?
• Is it showing relative strength?
• Is it near a breakout?
• Does the overall price structure look strong?
Using technical analysis doesn’t mean I’m picking a stock for just 1–2–3 days.
Technical analysis helps me understand price strength, momentum, and timing. A fundamentally strong business with a strong technical setup can provide much better conviction.
When we combine Fundamental Analysis + Technical Analysis, it becomes Techno-Funda.
Fundamentals help me understand what to buy, while technicals help me understand when to buy.
And honestly, this combination has worked really well for me over the past few months.
Techno + Funda = A powerful combination. 📈
Mark Dowdle: The job is not done.
He said in his video that the only reason he kept running after every mile was because THE JOB WAS NOT DONE.
That's it. It's that simple.
Once you decide to do something, the only thing that can stop you from doing it is YOU.
This is also evident from the fact that before the war, around 135 vessels used to pass from the SOH every single day.
Now only 5-6 pass every day. It is a 95%+ drop in oil and goods transport. This is exactly how America is benefitting from the war.
I'm a long-term investor.
I'm not in a hurry to get returns from my companies. I put an effort to pick good companies.
A good company which is producing good results will run eventually. May be today or tomorrow or next week or next month or next year (depending on business growth and fair valuation)
In fact the more my company stagnates, the more time I'll get to invest multiple installments.
The stock price should never be your conviction. Business should be.
Be irreplaceable!
Work to the point that you have leverage over other people.
Today in my office I met(virtually) a principal engineer who doesn't go to the office AT ALL. And mind you that in Amazon it's a worldwide policy to attend the office 5-days a week. This principle engineer not only stays at home, but has set his working days from Sun-Thurs, which means he's off during Friday & Saturday. It's written in his Slack & Phone tool app. Imagine the kind of leverage he has that he'll not get fired.
I was the exact same way in my last company at Expedia Group. I used to reach the office at ungodly hours like 1-2pm. I'd stay in my hometown half the time. I knew I would be tolerated because I did get stuff done on time and I was the lead developer in an internal tool which was used by ~2000 Expedia developers every single day.
I'll aim to achieve something similar in my new job as well.
So, the moral is that we should aim to do our best work, so that our work becomes our leverage over others and helps us achieve some level of freedom.