Insanely Practical

Without a basic knowledge in the business, one should not invest in companies. Investing in companies is like being the business owner. If you don't know about the business or not satisfied with the management, stay away from those companies.

Market corrections are inevitable and every correction should be seens as an opportunity to accumulate more good companies. As long as you are invested in companies with solid fundamentals, you don't need to worry about correction.

Keep investing in index funds as sip. Market corrects frequently and sip done at constant intervals make the money work for us.

Why should we invest after the crash? It has a lot to do with just buying the stock at a discounted price. After the crash, we can filter out the fundamentally strong stocks that survived the crash and made very little correction. Most of the new age stocks are overvalued and could not survive the crash. They might lose half of their value and would be a disaster for investors. By the way they publicize the IPO most of the retailers fell for it and make the investment. During the crash, this would be the top loser and struggle to break the all-time high. Therefore a crash can be viewed as an opportunity to invest in the filtered blue-chip stocks.

You can exit the position from your investment of you think the management is not as good as you thought. Even a company with solid financialls may default with wrong management.

There is no use case with investing of it doesn't best inflation. That is how we keep our purchasing power in our hand.

Portfolio diversification is important when it comes to maintaining an all weather investment.

Moving very slowly in the market earns good amount of return. This is exactly like investing through SIP.

Panic selling the cause of loss. If we invest in a very good company with strong fundamentals and a leading player in the growing industry, there is no point in worrying about the correctionms that the market gives. Market always corrects if the valuations are in a state of bubble. You should be focusing on companies that are fundamentally good.

Valuation is a key factor to look for before investing. For a highly valued stock, it is better to give time for a correction.

Margin of safety should be considered as a form of safeness factor. The amount of risk it will helps us to minimize while making an investment is highly useful. Buying stocks rather at the fair value than market value makes sense.

Focusing on industrial average return is good for wealth creation. Most of the time, when trying to double the money by each results in havoc. The wealth creation turns into a rollercoaster of ups and downs and finally yielding to a huge loss. We tend to put money based on the momentum and by the time we put this, it will be over and might turn to the distribution stage. Since the long term vision is now way nearer, then it will be hard to sustain at worst stages.

 Valuation should be taken into account before considering the investment. Once you find the company as overvalued, then you should stay away from it at least till correction. Correction is inevitable and for whatever it is, correction will happen sooner or later.

To have a good portfolio isn't about finding several multibaggers or investing in coins that are ready to explode, it is about diversifying the portfolio. Diversifying the portfolio is not just putting money into some random assets, it is actually diversifying the risk. Because narrowing risk to just a few assets is foolish. The greater the risk, the greater the reward and worser the failure. So having a well-diversified portfolio is important than having multibaggers.

It is evident that people migrate their assets to which gives good yields. Those who holds position in stocks at the time of bull run consider themselves as long term investors. But that won't last longer. Whenever the fed comes up with good bond yield followed by the inflation, these long term investors becomes short term investors and sell all their positions to build new positions in government bonds. This is swing. Wherever they see big number, they switch. But this is not how an actual investor do. He invests and stands still, may be even for decades. At the end of his tenure, we call him successful and study him. But the only thing that we see different there is a simple factor of patience. He never swings with the news, but stick with the guts.

 What to do when the market is heavily falling down? It is not certainly cell. Of course, you can sell if it is calculated and like you intended. But for the majority of the mobs fall into the mode of panic selling. The reason is quite simple. They are out of their wits. And they are acting like nuts. That won’t solve any problem. It actually makes things worse. What often people don’t realize at this time is that they are actually under the sunk cost fallacy. Sunk cost fallacy is simple to explain. But the practical solution is often to perform and very much rare to find a person who actually does above the fallacy trap. Sunk cost fallacy can be simply defined as an action inspired by fear and panic. But sadly these are the times we mostly do insane things captivated by decisions taken out of our wits. To make a better decision, either we have to be mindful or must be prepared. So when we are prepared, we know the decision that is ought to be taken at unanticipated times. Do it now

Why you should develop your own analysis method for sorting outnthe stock is  a really important question. This question is relevant to most of the speculators in the market. We call them investors once they know what they do, which only could be attained by developing your own method. The irony is each way of investing is pegged with emotions. So, even if you copy Warren Buffet formula of investing, you will get a poor result unless you peg with emotion.

Imperialism meant to take the possessions as much as possible. When the ideology of imperialism thrived at the period where everyone considered having more land is the sign of power and wealth, it is quite natural to have such a bias. The war were in the name of lands, bribes were measured by how much acres therein and certainly the wealth both of an individual and a kingdom. This was practised from the very beginning and multiple centuries before. The more land you own, the richer you are. Because there is no equivalent alternative to measure wealth. It took centuries to sway away from this notion. Slowly people started believe in assets. By then the most favourable one was gold (among matals). So the greedy ones went to hunt for gold, they dig deeper and deeper until they found some trace and they did. But with a short period of time, when compared with the duration at which people veered from lands to gold, people started believing in more assets classes are preferably the ownership

Investing is a healthy habit. It creates wealth and wellness. But investing isn't easy. It is easy to create a broker account and our money in. But inorder to be a good, patience and courage is the skill.

When the current price of a stock is way higher than its book value, then it is the time to think before investing. It means then the share is over priced and we can expect a correction sooner or later. Once the fundamentals are equally balanced, them the further movement indicates the real trend.