Learnings from the markets

For investors like us , Markets are the best teachers, I use this opportunity to pen down what i learned over the past few years. Just penned these thoughts. Trust this is helpful.

Investing in stocks is one of the best ways to build lasting, long-term wealth.

Cases can be made for achieving wealth through real estate or the creation and ownership of private businesses, but few asset classes have a track record of wealth creation as solid as public stock ownership, especially on a real (inflation-adjusted) basis.

Stocks represent an ownership stake in a real business.

Stocks aren't just flashing blips on a computer screen. They're legal claims on the current and future cash flow of a business and should be treated as such. When viewed through this lens, the fundamental drivers of long-term investing success become clearer and easier to grasp.

As such, buy shares in the best businesses you can find...

Those with the strongest competitive advantages, largest growth opportunities, and best management. The innovators, disruptors, and best of breed. These businesses are ... LEADERS. And they tend to create tremendous wealth for their shareholders as they lead the world forward.

Buy stocks with the intent of holding them for as long as you possibly can.

Warren Buffett has said his "favorite holding period is forever."

While we don't impose that restriction , we do strive to only purchase stock in businesses that we plan to hold for years -- and potentially many years -- to come. I'm talking about outstanding businesses such as and

These companies have dominant competitive advantages that provide a wide moat around their cash flow, yet they still have tremendous runways for growth.

Winners tend to keep on winning.

This is another valuable lesson I learned. We like to invest in companies & management teams with proven track records of success. That's because we believe past success is one of the best indicators of future success. It's certainly not a guarantee, but...

Winning is a habit. The confidence and momentum achieved from past and current wins tend to pave the way for further risk-taking. Not blind risk predicated on arrogance, but prudent, calculated risks based on optimistic and opportunistic bets on a brighter future.

Strive to buy these great companies early in their growth cycles.

The earlier you invest in a great business, the more you can profit as other investors catch on to the company's success. This is where fortunes are made.

It's our goal to find more of them going forward so that we can help more people achieve potentially life-changing -- returns.

Never stop learning.

To have an informed opinion , we should seek to expand our horizons and circle of competencies.

For the market moves not solely on others' rational thinking, and it's often swayed by the biases and other intricacies of human behavior.

Each day, we have to strive to learn more about the world in which we live.

Never quit.

There will be times when you throw up your hands in frustration and question whether it's worth all the trouble. Seemingly irrational short-term volatility and vicious bear market declines tend to be brutal on high-quality yet often premium-priced businesses. These difficult market times can play havoc on your emotions.

However, the only way to win is to stay the course through the inevitable downturns. Steel yourself with the knowledge that this, too, shall pass, and that your best- of-breed businesses will likely emerge from the rubble even stronger as they take share from weaker rivals.

As such, learn to look at these sell-offs as opportunities to add to your positions at even better prices, and you will magnify your long-term gains.

Use for good the tremendous wealth these principles will help you create.

Along with investing in businesses that lead people forward, strive to have a positive impact on the people around you. Help others and pass on what you have learned, as I have attempted to do here.

Disclaimer : We are registered Distributors of Financial Products. The included performance is an aggregated returns of products we may have distributed & past performance is not a necessary guide to future performance.?This document is not for external circulation.

要查看或添加评论,请登录

Growthfiniti Wealth Pvt Ltd的更多文章

社区洞察

其他会员也浏览了