Beginner’s Playbook: Building Your Investment Journey

Before we get into the how, we should have a clear understanding of the why.? Having worked closely with some of the best entrepreneurs, I realized early in my life that working hard alone is not enough. The money that we keep in the bank has to work harder too, generating returns and compounding year over year.?

Stepping into the world of investing is akin to embarking on a thrilling adventure, one filled with both excitement and uncertainty. Over the years, I've found myself fielding questions from eager beginners and seasoned investors alike, all seeking thoughts on navigating the labyrinth of financial markets. But the truth is, there's no foolproof roadmap to success. Like many before me, I've stumbled and faltered along the way, learning valuable lessons from each misstep. I vividly recall my early days as an investor, driven by a blend of curiosity and impulsiveness. One particular memory still resonates: investing in a struggling stock simply because it seemed like a bargain, only to watch it languish in my portfolio for years. It was a sobering reminder of the risks inherent in the market. Yet, despite my best efforts to exercise caution, I found myself caught off guard when the market took a downturn, facing losses that left me questioning my approach. In those moments of uncertainty, I yearned for guidance, a mentor to shed light on the intricacies of investing. But from the depths of adversity emerged a newfound determination to demystify the world of finance, to share the hard-won insights gleaned from my own journey. Here I am sharing my learnings and bring you all on a voyage of discovery, navigating the highs and lows of the investment landscape together

Here are some of my key learnings and guiding principles—the commandments of investing:

1. Investing is discipline, not a hobby; a marathon, not a sprint.?
2. Emotions play a crucial role; managing them is key to success. Fear, greed, overconfidence, indecisiveness, procrastination, and rashness can lead to disaster.
3. Wisdom trumps knowledge in investing. Be observant to spot opportunities.
4. Understanding organizations, economies, and geopolitics is essential.
5. Keep yourself informed about the economy, geopolitics, regulations, and business sentiments.
6. In stock markets, outcomes are relative; no single metric is determinative.
7. Investing encompasses various assets, including equities, bonds, fixed deposits, options, and cryptos, each requiring deep understanding and a consistent methodology.?
8. Different seasons favor different assets; for instance, bonds may gain popularity in periods of high interest rates.
9. Aim to be broadly right within ranges, focused on above-market returns. At all costs we must avoid big losses.??
10. There's no one-size-fits-all style; it depends on your risk appetite, understanding of products, and available investments. Avoid copying others; choose a style that suits you.

Why This Newsletter?

I started this newsletter because I wished I had someone to guide me during those early days. My goal is to simplify investing for you, breaking down complex concepts into relatable, actionable insights. Whether you’re here to build wealth, secure your future, or just learn the ropes, this space is for you.

In the next few issues, we’ll delve into:

• The basics of investing: Where and how to start.
• Building a portfolio: Crafting a mix that works for you.
• Studying a stock: Going beyond the numbers to see the bigger picture.

Here’s to taking the first step towards financial empowerment. I invite you to join me on this journey of discovery, where together, we’ll navigate the highs and lows of the investment landscape.

Warm regards,

Sumit