#82 Investing Lessons, Pure Independence, Buying at a Low Valuation
Sensible Take on FPI Selling & Taxation (Source)
Key Investing Lessons from Durgesh Shah
A simple yet powerful tip (Book)
Newsletter by Monarch AIF (Credit)
A wonderful Newsletter was published by Monarch AIF highlighting their-
Thoughts on current market scenario & FII inflows
Stock selection & analysis framework
AQCG scoring mechanism & Valuation methods used among other points
Pure Independence by Morgan Housel (Article)
Doing something on your own terms can feel better than doing the exact same thing when someone else is peering over your shoulder, telling you what to do, guiding you along.
Independence is the best financial goal for most people.
In business, finance, and everyday life, a great decision for me might be a terrible decision for you and vice versa. If everyone had the same goals, the same family dynamics, and the same personalities, we could make finance a hard science and say, “Here’s how everyone should save and invest.” But it’s not like that.
A lot of financial mistakes come from decisions that would be right for someone else but wrong for you.They are the most dangerous, because smart people around you say, “This worked for me. It changed my life. You should do it too.”
Charlie Munger’s 3 practical rules for success:
Don’t sell something you wouldn’t buy.
Work for people you admire.
Partner with people you enjoy.
When you’re independent you feel less desire to impress strangers, which can be an enormous financial and psychological cost.
A Solid Foundation is Buying at a Low Valuation (Article)
All successful investors have two things in common. They are extremely disciplined, and they understand the downside of their investments even more than the upside.
Most investors forget about valuation in bull markets. All they see is more upside to justify paying up.
Valuation is like a great balance sheet – eventually it matters.
Multiple expansion is a beautiful thing when you buy before the multiple expands.It’s better to buy companies before the multiple expands. Before they are discovered by institutions. Before they are priced for perfection.
By the time everyone calls it a great business the exceptional returns are usually in the rearview. The time to buy is when a company is misunderstood, undiscovered and under-appreciated.
Your purchase price matters. Valuation matters. When you combine low valuation with double digit organic growth and a company that doesn’t need to raise money, you get market beating returns.
Interesting Books to read
Tiny Experiments: Embrace Uncertainty, Commit to Curiosity, and Build a Life of Discovery
A neuroscientist’s guide to redefining goals, creativity, and life. Tools to overcome limits, embrace imperfection, and harness curiosity.
This warm and inspiring book, Bill Gates’ origin story, allows readers to understand his energy and ambition – and to see how he sets himself in the world.
The 5 Types of Wealth. Launch your journey to fulfillment with this transformative system from inspirational writer, speaker, and entrepreneur Sahil Bloom
The book explores semiconductor power shifts, China’s role, and future trends.
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Dhaval
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