Investing in stocks is risky. It’s very rare, if ever, to witness someone who has remained isolated from the volatility inherent in equities. That’s the reason returns from equity have the scope to amplify. It makes better sense to assume a certain level of risk while modelling or strategizing equities. There are quite a few ways one can pursue this. These are some basic rules that I have learnt over many years of investing to help me navigate the erratic nature of markets-

a. Always keep a margin of safety: The biggest problem with estimating the intrinsic value is that two investors with the same set of information can value a company differently. For this reason, an investor should always look for margin of safety. This simply means that the investor should buy the stock at a huge discount so as to allow for some room for error in the estimation of the intrinsic value. The biggest advantage of using margin of safety is that it limits the risk of a permanent loss of capital. Unlike penny stocks whose price can tumble, it is less probable that value stocks will continue to experience decline in prices.

b. Avoiding losses is more important than sizable returns: For investors, avoiding losses should be the first priority; even over generating investment gains. Long term success in investing comes from making consistently safe long-term investment decisions. Successful value investors minimize the risk of big losses by investing at a discount to a company’s intrinsic value. They may not always get market-beating growth, but if they can minimize losses (and the need to recover from those losses), they’ll need less growth to meet their investing goals over time.

c. Try not to follow the herd: We see lots of examples of herd mentality in investing and financial decisions, due in no small part to the fact that many people don’t really understand what they are doing when it comes to the markets. When a well-known investor buys or sells any stock, many investors not well versed with the dynamics of the stock markets follow him blindly, by buying or selling that particular stock. They do not analyze the strategy that such investors follow. They do not apply their skills nor their own understanding of the stocks while taking the necessary action, thus leading to losses. When it comes to investing, you have to do the research and follow the path of logic and facts, not the way of media hype and enthusiasm from all quarters. d. Think long-term: There’s no secret recipe to stock market success, but perhaps the best advice is to buy shares in great companies and hold them for decades. Patiently sticking with stocks through bear markets can be hard, but historical returns prove that the results are very pleasing. Gaining success in stock markets is all about being undeterred about your conviction for a stock /company and staying put through market peaks and troughs.

Investing in stocks is risky. It’s very rare, if ever, to witness someone who has remained isolated from the volatility inherent in equities. That’s the reason returns from equity have the scope to amplify. It makes better sense to assume a certain level of risk while modelling or strategizing equities. There are quite a few ways one can pursue this. These are some basic rules that I have learnt over many years of investing to help me navigate the erratic nature of markets-

a. Always keep a margin of safety: The biggest problem with estimating the intrinsic value is that two investors with the same set of information can value a company differently. For this reason, an investor should always look for margin of safety. This simply means that the investor should buy the stock at a huge discount so as to allow for some room for error in the estimation of the intrinsic value. The biggest advantage of using margin of safety is that it limits the risk of a permanent loss of capital. Unlike penny stocks whose price can tumble, it is less probable that value stocks will continue to experience decline in prices.

b. Avoiding losses is more important than sizable returns: For investors, avoiding losses should be the first priority; even over generating investment gains. Long term success in investing comes from making consistently safe long-term investment decisions. Successful value investors minimize the risk of big losses by investing at a discount to a company’s intrinsic value. They may not always get market-beating growth, but if they can minimize losses (and the need to recover from those losses), they’ll need less growth to meet their investing goals over time.

c. Try not to follow the herd: We see lots of examples of herd mentality in investing and financial decisions, due in no small part to the fact that many people don’t really understand what they are doing when it comes to the markets. When a well-known investor buys or sells any stock, many investors not well versed with the dynamics of the stock markets follow him blindly, by buying or selling that particular stock. They do not analyze the strategy that such investors follow. They do not apply their skills nor their own understanding of the stocks while taking the necessary action, thus leading to losses. When it comes to investing, you have to do the research and follow the path of logic and facts, not the way of media hype and enthusiasm from all quarters. d. Think long-term: There’s no secret recipe to stock market success, but perhaps the best advice is to buy shares in great companies and hold them for decades. Patiently sticking with stocks through bear markets can be hard, but historical returns prove that the results are very pleasing. Gaining success in stock markets is all about being undeterred about your conviction for a stock /company and staying put through market peaks and troughs.

Investing in stocks is risky. It’s very rare, if ever, to witness someone who has remained isolated from the volatility inherent in equities. That’s the reason returns from equity have the scope to amplify. It makes better sense to assume a certain level of risk while modelling or strategizing equities. There are quite a few ways one can pursue this. These are some basic rules that I have learnt over many years of investing to help me navigate the erratic nature of markets-

a. Always keep a margin of safety: The biggest problem with estimating the intrinsic value is that two investors with the same set of information can value a company differently. For this reason, an investor should always look for margin of safety. This simply means that the investor should buy the stock at a huge discount so as to allow for some room for error in the estimation of the intrinsic value. The biggest advantage of using margin of safety is that it limits the risk of a permanent loss of capital. Unlike penny stocks whose price can tumble, it is less probable that value stocks will continue to experience decline in prices.

b. Avoiding losses is more important than sizable returns: For investors, avoiding losses should be the first priority; even over generating investment gains. Long term success in investing comes from making consistently safe long-term investment decisions. Successful value investors minimize the risk of big losses by investing at a discount to a company’s intrinsic value. They may not always get market-beating growth, but if they can minimize losses (and the need to recover from those losses), they’ll need less growth to meet their investing goals over time.

c. Try not to follow the herd: We see lots of examples of herd mentality in investing and financial decisions, due in no small part to the fact that many people don’t really understand what they are doing when it comes to the markets. When a well-known investor buys or sells any stock, many investors not well versed with the dynamics of the stock markets follow him blindly, by buying or selling that particular stock. They do not analyze the strategy that such investors follow. They do not apply their skills nor their own understanding of the stocks while taking the necessary action, thus leading to losses. When it comes to investing, you have to do the research and follow the path of logic and facts, not the way of media hype and enthusiasm from all quarters. d. Think long-term: There’s no secret recipe to stock market success, but perhaps the best advice is to buy shares in great companies and hold them for decades. Patiently sticking with stocks through bear markets can be hard, but historical returns prove that the results are very pleasing. Gaining success in stock markets is all about being undeterred about your conviction for a stock /company and staying put through market peaks and troughs.

Investing in stocks is risky. It’s very rare, if ever, to witness someone who has remained isolated from the volatility inherent in equities. That’s the reason returns from equity have the scope to amplify. It makes better sense to assume a certain level of risk while modelling or strategizing equities. There are quite a few ways one can pursue this. These are some basic rules that I have learnt over many years of investing to help me navigate the erratic nature of markets-

a. Always keep a margin of safety: The biggest problem with estimating the intrinsic value is that two investors with the same set of information can value a company differently. For this reason, an investor should always look for margin of safety. This simply means that the investor should buy the stock at a huge discount so as to allow for some room for error in the estimation of the intrinsic value. The biggest advantage of using margin of safety is that it limits the risk of a permanent loss of capital. Unlike penny stocks whose price can tumble, it is less probable that value stocks will continue to experience decline in prices.

b. Avoiding losses is more important than sizable returns: For investors, avoiding losses should be the first priority; even over generating investment gains. Long term success in investing comes from making consistently safe long-term investment decisions. Successful value investors minimize the risk of big losses by investing at a discount to a company’s intrinsic value. They may not always get market-beating growth, but if they can minimize losses (and the need to recover from those losses), they’ll need less growth to meet their investing goals over time.

c. Try not to follow the herd: We see lots of examples of herd mentality in investing and financial decisions, due in no small part to the fact that many people don’t really understand what they are doing when it comes to the markets. When a well-known investor buys or sells any stock, many investors not well versed with the dynamics of the stock markets follow him blindly, by buying or selling that particular stock. They do not analyze the strategy that such investors follow. They do not apply their skills nor their own understanding of the stocks while taking the necessary action, thus leading to losses. When it comes to investing, you have to do the research and follow the path of logic and facts, not the way of media hype and enthusiasm from all quarters. d. Think long-term: There’s no secret recipe to stock market success, but perhaps the best advice is to buy shares in great companies and hold them for decades. Patiently sticking with stocks through bear markets can be hard, but historical returns prove that the results are very pleasing. Gaining success in stock markets is all about being undeterred about your conviction for a stock /company and staying put through market peaks and troughs.

Investing in stocks is risky. It’s very rare, if ever, to witness someone who has remained isolated from the volatility inherent in equities. That’s the reason returns from equity have the scope to amplify. It makes better sense to assume a certain level of risk while modelling or strategizing equities. There are quite a few ways one can pursue this. These are some basic rules that I have learnt over many years of investing to help me navigate the erratic nature of markets-

a. Always keep a margin of safety: The biggest problem with estimating the intrinsic value is that two investors with the same set of information can value a company differently. For this reason, an investor should always look for margin of safety. This simply means that the investor should buy the stock at a huge discount so as to allow for some room for error in the estimation of the intrinsic value. The biggest advantage of using margin of safety is that it limits the risk of a permanent loss of capital. Unlike penny stocks whose price can tumble, it is less probable that value stocks will continue to experience decline in prices.

b. Avoiding losses is more important than sizable returns: For investors, avoiding losses should be the first priority; even over generating investment gains. Long term success in investing comes from making consistently safe long-term investment decisions. Successful value investors minimize the risk of big losses by investing at a discount to a company’s intrinsic value. They may not always get market-beating growth, but if they can minimize losses (and the need to recover from those losses), they’ll need less growth to meet their investing goals over time.

c. Try not to follow the herd: We see lots of examples of herd mentality in investing and financial decisions, due in no small part to the fact that many people don’t really understand what they are doing when it comes to the markets. When a well-known investor buys or sells any stock, many investors not well versed with the dynamics of the stock markets follow him blindly, by buying or selling that particular stock. They do not analyze the strategy that such investors follow. They do not apply their skills nor their own understanding of the stocks while taking the necessary action, thus leading to losses. When it comes to investing, you have to do the research and follow the path of logic and facts, not the way of media hype and enthusiasm from all quarters. d. Think long-term: There’s no secret recipe to stock market success, but perhaps the best advice is to buy shares in great companies and hold them for decades. Patiently sticking with stocks through bear markets can be hard, but historical returns prove that the results are very pleasing. Gaining success in stock markets is all about being undeterred about your conviction for a stock /company and staying put through market peaks and troughs.

Investing in stocks is risky. It’s very rare, if ever, to witness someone who has remained isolated from the volatility inherent in equities. That’s the reason returns from equity have the scope to amplify. It makes better sense to assume a certain level of risk while modelling or strategizing equities. There are quite a few ways one can pursue this. These are some basic rules that I have learnt over many years of investing to help me navigate the erratic nature of markets-

a. Always keep a margin of safety: The biggest problem with estimating the intrinsic value is that two investors with the same set of information can value a company differently. For this reason, an investor should always look for margin of safety. This simply means that the investor should buy the stock at a huge discount so as to allow for some room for error in the estimation of the intrinsic value. The biggest advantage of using margin of safety is that it limits the risk of a permanent loss of capital. Unlike penny stocks whose price can tumble, it is less probable that value stocks will continue to experience decline in prices.

b. Avoiding losses is more important than sizable returns: For investors, avoiding losses should be the first priority; even over generating investment gains. Long term success in investing comes from making consistently safe long-term investment decisions. Successful value investors minimize the risk of big losses by investing at a discount to a company’s intrinsic value. They may not always get market-beating growth, but if they can minimize losses (and the need to recover from those losses), they’ll need less growth to meet their investing goals over time.

c. Try not to follow the herd: We see lots of examples of herd mentality in investing and financial decisions, due in no small part to the fact that many people don’t really understand what they are doing when it comes to the markets. When a well-known investor buys or sells any stock, many investors not well versed with the dynamics of the stock markets follow him blindly, by buying or selling that particular stock. They do not analyze the strategy that such investors follow. They do not apply their skills nor their own understanding of the stocks while taking the necessary action, thus leading to losses. When it comes to investing, you have to do the research and follow the path of logic and facts, not the way of media hype and enthusiasm from all quarters. d. Think long-term: There’s no secret recipe to stock market success, but perhaps the best advice is to buy shares in great companies and hold them for decades. Patiently sticking with stocks through bear markets can be hard, but historical returns prove that the results are very pleasing. Gaining success in stock markets is all about being undeterred about your conviction for a stock /company and staying put through market peaks and troughs.

Investing in stocks is risky. It’s very rare, if ever, to witness someone who has remained isolated from the volatility inherent in equities. That’s the reason returns from equity have the scope to amplify. It makes better sense to assume a certain level of risk while modelling or strategizing equities. There are quite a few ways one can pursue this. These are some basic rules that I have learnt over many years of investing to help me navigate the erratic nature of markets-

a. Always keep a margin of safety: The biggest problem with estimating the intrinsic value is that two investors with the same set of information can value a company differently. For this reason, an investor should always look for margin of safety. This simply means that the investor should buy the stock at a huge discount so as to allow for some room for error in the estimation of the intrinsic value. The biggest advantage of using margin of safety is that it limits the risk of a permanent loss of capital. Unlike penny stocks whose price can tumble, it is less probable that value stocks will continue to experience decline in prices.

b. Avoiding losses is more important than sizable returns: For investors, avoiding losses should be the first priority; even over generating investment gains. Long term success in investing comes from making consistently safe long-term investment decisions. Successful value investors minimize the risk of big losses by investing at a discount to a company’s intrinsic value. They may not always get market-beating growth, but if they can minimize losses (and the need to recover from those losses), they’ll need less growth to meet their investing goals over time.

c. Try not to follow the herd: We see lots of examples of herd mentality in investing and financial decisions, due in no small part to the fact that many people don’t really understand what they are doing when it comes to the markets. When a well-known investor buys or sells any stock, many investors not well versed with the dynamics of the stock markets follow him blindly, by buying or selling that particular stock. They do not analyze the strategy that such investors follow. They do not apply their skills nor their own understanding of the stocks while taking the necessary action, thus leading to losses. When it comes to investing, you have to do the research and follow the path of logic and facts, not the way of media hype and enthusiasm from all quarters. d. Think long-term: There’s no secret recipe to stock market success, but perhaps the best advice is to buy shares in great companies and hold them for decades. Patiently sticking with stocks through bear markets can be hard, but historical returns prove that the results are very pleasing. Gaining success in stock markets is all about being undeterred about your conviction for a stock /company and staying put through market peaks and troughs.

Investing in stocks is risky. It’s very rare, if ever, to witness someone who has remained isolated from the volatility inherent in equities. That’s the reason returns from equity have the scope to amplify. It makes better sense to assume a certain level of risk while modelling or strategizing equities. There are quite a few ways one can pursue this. These are some basic rules that I have learnt over many years of investing to help me navigate the erratic nature of markets-

a. Always keep a margin of safety: The biggest problem with estimating the intrinsic value is that two investors with the same set of information can value a company differently. For this reason, an investor should always look for margin of safety. This simply means that the investor should buy the stock at a huge discount so as to allow for some room for error in the estimation of the intrinsic value. The biggest advantage of using margin of safety is that it limits the risk of a permanent loss of capital. Unlike penny stocks whose price can tumble, it is less probable that value stocks will continue to experience decline in prices.

b. Avoiding losses is more important than sizable returns: For investors, avoiding losses should be the first priority; even over generating investment gains. Long term success in investing comes from making consistently safe long-term investment decisions. Successful value investors minimize the risk of big losses by investing at a discount to a company’s intrinsic value. They may not always get market-beating growth, but if they can minimize losses (and the need to recover from those losses), they’ll need less growth to meet their investing goals over time.

c. Try not to follow the herd: We see lots of examples of herd mentality in investing and financial decisions, due in no small part to the fact that many people don’t really understand what they are doing when it comes to the markets. When a well-known investor buys or sells any stock, many investors not well versed with the dynamics of the stock markets follow him blindly, by buying or selling that particular stock. They do not analyze the strategy that such investors follow. They do not apply their skills nor their own understanding of the stocks while taking the necessary action, thus leading to losses. When it comes to investing, you have to do the research and follow the path of logic and facts, not the way of media hype and enthusiasm from all quarters. d. Think long-term: There’s no secret recipe to stock market success, but perhaps the best advice is to buy shares in great companies and hold them for decades. Patiently sticking with stocks through bear markets can be hard, but historical returns prove that the results are very pleasing. Gaining success in stock markets is all about being undeterred about your conviction for a stock /company and staying put through market peaks and troughs.

Investing in stocks is risky. It’s very rare, if ever, to witness someone who has remained isolated from the volatility inherent in equities. That’s the reason returns from equity have the scope to amplify. It makes better sense to assume a certain level of risk while modelling or strategizing equities. There are quite a few ways one can pursue this. These are some basic rules that I have learnt over many years of investing to help me navigate the erratic nature of markets-

a. Always keep a margin of safety: The biggest problem with estimating the intrinsic value is that two investors with the same set of information can value a company differently. For this reason, an investor should always look for margin of safety. This simply means that the investor should buy the stock at a huge discount so as to allow for some room for error in the estimation of the intrinsic value. The biggest advantage of using margin of safety is that it limits the risk of a permanent loss of capital. Unlike penny stocks whose price can tumble, it is less probable that value stocks will continue to experience decline in prices.

b. Avoiding losses is more important than sizable returns: For investors, avoiding losses should be the first priority; even over generating investment gains. Long term success in investing comes from making consistently safe long-term investment decisions. Successful value investors minimize the risk of big losses by investing at a discount to a company’s intrinsic value. They may not always get market-beating growth, but if they can minimize losses (and the need to recover from those losses), they’ll need less growth to meet their investing goals over time.

c. Try not to follow the herd: We see lots of examples of herd mentality in investing and financial decisions, due in no small part to the fact that many people don’t really understand what they are doing when it comes to the markets. When a well-known investor buys or sells any stock, many investors not well versed with the dynamics of the stock markets follow him blindly, by buying or selling that particular stock. They do not analyze the strategy that such investors follow. They do not apply their skills nor their own understanding of the stocks while taking the necessary action, thus leading to losses. When it comes to investing, you have to do the research and follow the path of logic and facts, not the way of media hype and enthusiasm from all quarters. d. Think long-term: There’s no secret recipe to stock market success, but perhaps the best advice is to buy shares in great companies and hold them for decades. Patiently sticking with stocks through bear markets can be hard, but historical returns prove that the results are very pleasing. Gaining success in stock markets is all about being undeterred about your conviction for a stock /company and staying put through market peaks and troughs.