Coming to the end of the year, we take stock. This year I published the Curiosity blog every Friday. Without missing a single week. I started this a few years back to put the habit of noting down the important points from some of the best articles that I read through the week so that I can come back to it later if needed.
Over the years, this practice has helped me, and at times forced me, to read more attentively and more broadly.
Thank you all for being part of my learning process. With this blog, I now get the occasional mail from readers suggesting good articles they have read. If you find something interesting do send me a link.
In this edition of Curiosity, I will do excerpts from my writing during the year. It will help me revisit what I have written and if it has stood the test of time.
1.
Market Turbulence: Way forward
In manufacturing, we are seeing a very strong migration of global businesses away from China. India is one of the potential beneficiaries and it is a decadal theme. China’s manufacturing dominance took over two decades and the next decade is likely to belong to non-Chinese emerging markets.
I believe India is on the verge of a big capex cycle recovery which will play out in the coming two to three years. PLI schemes, govt focus on railways, highways, airports, water distribution, green energy and other infra projects are also seeing a large bump up in the central budget.
With the turbulence in the markets, it is possible that some of your individual portfolios are temporarily in the red. Markets are currently in the stage where it is digesting the huge gains in the Covid years. This is not unusual. Equities are a non-linear asset class and short-term drawdowns are a part and parcel of the overall scheme of things.
For investors with a long-term view, times such as now is a great opportunity to keep adding capital to their portfolio. I am firmly of the belief that once Indian markets pick up, it will provide disproportionate returns.
2.
The Progress of AI and the Art of Questioning
For investors, chatGPT has been a boon. The most important skill to use is the ability to ask questions. Our questions need to be concise, precise, contextual and simple. And that is not something we are adept at. From childhood, our education system teaches us to learn by rote. We are rarely asked, permitted or encouraged to question. And that is the skill that we most need to possess in the new era. So, encourage yourself and your next-gen to be creative and fearless in asking questions. Because the better questions we ask the better answers we will get.
3.
Why investing in markets is like cooking
If you want to become a good investor, the most important thing to do is to start practising and getting feedback from the market and keep refining your process. Another critical point is to follow those investors whose style gels with your own and who have demonstrated success over a reasonable period of time. It is best not to fall for glib talk from finfluencers on YouTube or the media.
Investing is a lived skill, not a learned one. The availability of information today, especially on social media, is so much that people tend to get a feeling of expertise just by repeated exposure. However, this is not the same as actually investing and gaining experience.
4.
Lessons from the investing trenches
1. Stocks are not forever
2. Be a fair-weather friend of a company
3. Capital is sacrosanct. Don’t lose it.
4. Have multiple strategies
5. Look for sustained momentum - both in business and price
6. Price is the final adjudicator.
7. Value is in the eye of the beholder
8. Get both fundamental and technical factors in your favour
9. Diversify across timeframes
10. Psychology is the most important thing
5.
Other notable articles
Market is at an all-time high. Should you invest now or wait?
Don't waste your time on PE - focus on the business instead
Build your financial resilience
The Worldly Wisdom of Charlie Munger
Videos of the Year
Intelsense Insights
To choose a subscription service, you can watch this short video to understand each offering:
Once you decide, you can directly go to https://intelsense.in/subscription, you can pay online and the service will be activated immediately.
DISCLAIMER:
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
SEBI Registered Research Analyst - Cupressus Enterprises Pvt Ltd - INH000013828.
Registration granted by SEBI and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.