Nandkishore Gitte

Chief Engineer,Maritime Blogger @ LifeAT SEA and MentorAtSea, Maritime Trainer, Motivator.

[Nandkishore Gitte @nandugite]

“ A calm and modest life brings more happiness than the constant pursuit of success combined with constant restlessness. “ #alberteinstein

[shobhanai @HeyShobhan]

Sam Altman (CEO of Open AI):

"You no longer need to write prompts."

In just 38 minutes, he explains how to use ChatGpt at a level that most people can't even imagine.

It's talk he gave to stanford students. A friend sent me the recording last night.

After watching it, I realized I was only taking advantage of about 15% of what this tool can really do.

Watch it in full and then read the guide l leave below on how to create a system that prompts itself.

[Jaynit @jaynitx]

Bill Ackman literally gave a 44-minute masterclass that explains money better than any business school.

1. Starting early is the single biggest advantage you have. If you save $10,000 at age 22, never add another penny, and earn 10% a year, you have $600,000 by retirement. wait until 32 to start, and the same money only grows to $232,000. The decade you lose at the beginning costs you more than any decade later because compounding does its heaviest lifting at the end.

2. The return rate matters even more than most people grasp. That same $10,000 at 22 earning 10% becomes $600,000. At 15% it becomes over 4 million. At 20%, the rate Warren Buffett has achieved, it becomes 25 million. Einstein called compound interest the most powerful force in the universe. Ackman's lecture is essentially a demonstration of why.

3. Avoiding losses matters as much as chasing returns. if you reach for a 20% return but lose half your money every 12 years from bad decisions or a rough patch, your 25 million collapses to 1.8 million. Buffett's rule one is never lose money. Rule two is never forget rule one. the math of recovery is brutal, so protecting the downside is not caution, it is strategy.

4. Debt is safer, but the upside is capped. Equity is riskier, but the upside is unlimited. In the lemonade stand example, the lender who put up $250 earns a steady 10% and gets paid back first if the business fails. the equity investor who put up $500 earns over 100% if it succeeds but gets wiped out if it fails. The equity holder earns more precisely because they took the risk the lender refused.

5. The risk that matters is permanent loss, not price movement. most people think risk is the stock price bouncing up and down every day. Ackman says ignore that. the real risk is whether you will permanently lose your money. Short-term volatility is noise. the question that matters is whether you get your capital back with a return over the long run.

6. Avoid startups and complicated businesses. You do not need 100% a year to build a fortune. you need 10 to 15% over a long period. so skip the lemonade stands and unknown ventures. Invest in public companies that are established, liquid, and have to clear real hurdles before going public. If you cannot understand how a business makes money, avoid it no matter how good its track record. Ackman cites Enron, a business almost nobody actually understood.

7. Invest in a business you could own forever. if the stock market closed for 10 years, you should not be unhappy holding it. Coca-Cola is his example. easy to understand, sells a syrup and earns a profit on every drink, the population keeps growing, and it is nearly impossible to disrupt with new technology. McDonald's is another. People have to eat, the food is cheap, and they keep growing. find a business you would be comfortable holding through anything.

8. You want products people are loyal to and will pay a premium for. People buy generic flour and sugar without caring about the brand. but they want the Hershey bar, the Cadbury bar, the see's candy specifically. you do not want to sell a commodity that anyone can sell cheaper. You want something unique that customers refuse to substitute even at a 20% discount.

9. Low debt is a safety feature. In the lemonade stand example, $250 of debt was manageable. But if it had been $1,000 and the business hit a rough patch, it could have gone under and wiped out the shareholders. Find companies with little debt or so much profit relative to their interest payments that a bad year cannot sink them.

10. Barriers to entry protect your returns. You want a business that is hard for someone to compete with tomorrow. Coca-Cola's market presence is so strong that you expect to get a Coke at any restaurant. Pepsi has coexisted with it for decades, but neither can put the other out of business. If a competitor can show up next year with a better version and steal the customers, the business is not worth owning long term.

11. The best businesses are immune to outside factors you cannot control. Coca-Cola has survived 120 years through world wars, nuclear weapons, and every kind of crisis, and each year it makes slightly more money. You want companies that do not depend on commodity prices, interest rates, or currency moves. A business that keeps earning regardless of what is happening in the world is the kind you hold forever.

12. Low capital intensity is one of the most underrated qualities. The worst businesses require massive reinvestment to grow. The auto industry has to build enormous factories and buy machine tools before selling a single car, and those tools wear out. GM's stock barely moved over 40 to 50 years for exactly this reason. Coca-Cola, by contrast, sells a formula and collects a royalty. American Express takes a few percent of every dollar spent on its card. a business that earns a royalty on other people's capital is one of the best things you can own.

13. Pay down debt and build a cushion before you invest. If you have high-interest credit card debt, paying it off is a guaranteed return equal to the interest rate. same logic, to a lesser degree, with student loans at 6 or 7%. and you want 6 to 12 months of expenses in the bank so that losing your job tomorrow does not force you to sell. You can only handle market volatility if you do not need the money.

14. Be a buyer when everyone is selling and a seller when everyone is buying. The natural human tendency is the opposite, a lemming-like instinct to sell in a crash and buy in a bubble. people sold into the 1987 crash when they should have been buying. The only way to resist this is to be financially secure enough that the money at risk does not affect your life, so you can withstand the swings without panicking.

15. The stock market is a voting machine in the short term and a weighing machine in the long term. Ben Graham's idea, which Ackman repeats. short-term prices reflect the whims and emotions of investors. long term, prices reflect the actual value of the underlying businesses. If you buy good businesses at reasonable prices and hold them while they grow, you make money over time as long as you are never forced to sell at the wrong moment.

16. A stock is just a bond where you do not know the coupon. Flip a price-to-earnings ratio over, and you get an earnings yield. A stock at 10 times earnings is a 10% earnings yield, which you can compare directly to a 3% treasury. the difference is the bond's coupon is fixed and the stock's coupon, its earnings, moves up and down. Ackman wants an earnings yield higher than a treasury that will also grow over time, so he does not need to be right about explosive growth to earn a good return.

[CA Vivek Khatri @CaVivekkhatri]

In 1998, Warren Buffett explained how to never lose money. MUST BOOKMARK🔖

The lecture was 1 hour 24 minutes long.

The company built on those ideas is now worth $1 trillion.
This is the closest thing to a cheat code that exists.

I'm sharing my latest viral find with you - watch even 5 minutes and your trading mindset will shift forever.

Share it. You'll thank yourself later.

[Ritesh Jain @riteshmjn]

This is a fantastic piece.

Actually everybody in western world should read that … (you can disagree) because majority of your public equity/ private equity investments are invested in this theme .. through your wealth manager.

Even if you disagree .. you will be able to ask better questions and think better.. afterall it is your hard earned money right?

https://t.co/sUGpZfeCVv

[John Ʌ Konrad V @johnkonrad]

This is a brilliant analysis of risk and why I keep hammering the Navy to buy fireboats, salvage ships and floating repair drydocks

What the Navy does not understand is loss works disproportionately against you.

Say I have $400 and my stocks go up 50% now I have $600. Problem is if maintain the same level of risk and lose 50% I don’t have $400… I have only $300!

Same if we build a 600 fleet Navy! Lose half of those to battle damage and we have fewer ships than we have today.

[Nandkishore Gitte @nandugite]

@jasonzweigwsj Pre booked.

[Elon Musk @elonmusk]

Not many people these days know that the British Empire was the driving force behind ending the vast majority of global slavery.

Slavery or de facto slavery was standard practice throughout the world from the dawn of civilization until a few hundred years ago. It is even discussed at length in the Bible, for example.

[Deepak Shenoy @deepakshenoy]

We've created a Capitalmind Flipbook of interesting charts that you might find useful. From economic metrics like inflation/credit growth, to which mutual funds have more AUM in direct versus regular options...check it out. Would love your feedback!

https://t.co/w4Bgb22sKN

[Contrarian EPS @contrarianEPS]

long term investors study businesses and annual reports

short term investors study markets and flows

choose ur poison

[Contrarian EPS @contrarianEPS]

Short term cautious, long term bullish. State of conservative investor.

[Contrarian EPS @contrarianEPS]

hmm.. i go with even under appreciated can generate alpha!

[Fundoo Professor @Sanjay__Bakshi]

LSE Alumni Lecture

I gave this talk titled "FROM UNTOUCHABLE TO IRRESISTIBLE: Three cases on the pricing of government-owned businesses in Indian stock markets."

Link: https://t.co/vmC6VLTPVE

@LSEAlumniMumbai

[Harsh Goenka @hvgoenka]

So much old world wisdom in this letter

[Nandkishore Gitte @nandugite]

@contrarianEPS

[Fundoo Professor @Sanjay__Bakshi]

The Orangutan Effect
https://t.co/8GsrDY3oAk

[Chander Bhatia @ChanderBhatia01]

I don’t wait for corrections in the market. I am always prepared to handle corrections.

In other words, be invested only in undervalued or fairly valued stocks with a long term perspective.

[Nandkishore Gitte @nandugite]

Given these potential outcomes, Pascal argues that it is more rational to believe in God because the potential loss (eternal damnation) is far greater if you choose not to believe and God does exist.

[Nandkishore Gitte @nandugite]

Blaise Pascal's argument is known as Pascal's Wager. It suggests that it is a better "bet" to believe in God than not to believe, based on the potential outcomes. Breakdown of the argument:

1. If you believe in God and God exists**: You gain eternal happiness in heaven.

[Nandkishore Gitte @nandugite]

4. **If you don't believe in God and God doesn't exist**: You gain little, maybe just some earthly pleasures.