WEALTH CREATION IDEAS

WEALTH CREATION IDEAS

1. Investors have overwhelming affection for things that are certain.

2. Technology has changed but human psychology has not.

3. Risk comes from not knowing what you are doing.

4. Never mistake activity for achievement in portfolio management.

5. Money is made when greed meets Mr. Earnings & Mr. Pessimism.

6. Trade with a trend not your Friend.

7. Quality, rather than quantity of ideas will result in Big Money.

8. Changes in opinion, but nothing else, cause changes in stock price.

9. In Investing, courage becomes the supreme virtue after analysis.

10. Own not the most, but the Best.

11. Investors & Traders learn nothing & forget everything.

12. Chief losses to investors come from the purchase of low quality stocks in boom time.

13. If we shopped for stocks the way we shop for socks, we would be better off.

14. Have ability to differentiate few outstanding companies from masses.

15. Though difficult to practice, think ahead of the crowd.

16. Plan your play & play your plan. Don’t delay.

17. Too much of churning is injurious to your wealth.

18. Patient investors, buying value instead of hype, win out.

19. Growth is not enough to sustain a profitable investment strategy.

20. Always play for meaningful stakes.

21. When you sell in desperation, you always sell cheap.

22. Earning money is easy, but preserving wealth is difficult.

23. There is no formula to figure out intrinsic value of a stock, you have to know the business.

24. Don’t confuse brains with the bull market.

25. Wealth Creation is the art of buying a rupee for 40 paise.

26. “Margin of Safety” renders unnecessary accurate estimate of future.

27. Multi-baggers are found in huts & lost in palaces.

28. When fear subsides, intrinsic value wins out.

29. No matter how fast firms are growing, there are limits to valuation.

30. No stock picker has ever had a 100% success rate.

31. Valuation always matters when buying stocks.

32. Short term transactions frequently act as invisible foot, kicking society in the shin.

33. Never buy a stock because it has low price.

34. Three things determine the direction of the market: Earnings, Interest Rate & Psychology.

35. Be fearful when others are greedy. Be greedy when others are fearful.