technotes.tick

      It is important to predict business outcomes for long term of at-least 10 years with good safety margin irrespective of market quotation for success in long term investment strategy.  For this business should have good earning potential in next 10 years. I prefer to follow this strategy as I am not a full time trader. List you circle of competence and go to step 1 only if its inside my circle of competence. Step 1 Predictable earnings - 10 yrs EPS to be found See if it has upward trajectory if there is any anomaly in any years - find the reason behind the anomaly. Step 2 Higher the price you pay lower the rate of return Find the initial rate of return: Price of the stock in current year(x) : Expected earning per share for current year(y) :                                                                  Price of stock in current Initial rate of return(z) :              ----------------------------------------                                                   Expected earning per

I always tried to learn from the very best in investment business Mr buffet and Munger. I have tried to understand and follow all their method while investing. Even though I tried to follow it I took a detour and it cost me half of my investment. Rules I broke : Always  invest long term. Always buy good business at fair price than fair business at wonderful price. Don't listen to guru's And I did break all the above rules. I happen to follow the modern warren buffet or Shameless clone of warren buffet as he himself advertises. Following where Mr Pabrai's idea of choosing stocks in a youtube video These where tips from him I followed to pick the stock 1.Business that Idiots can run 2. Great Management and Great Business is the way to go. 3. Low Risk - High uncertainty business that are always wrongly priced by markets - Look for stocks with PE less than 3 (More than 3 would be dead stocks or would not move much) - This was the point that killed me. 4. Bankruptcies etc. 5. Up

I am at a place in my life where when I look back. I think I have got everything I did with money wrong. I took too many leaves at my first job( Partially because my team lead was never here and always in US) and I had finished my work before hand while others where catching up. Then I chose to go places where I thought I was doing the best given my choices as things where contagious in personnel life. Sadly after this journey once I have reached there I realized may be I do not like it enough as I thought I would in a MNC work culture. The work we do is never to our 100 percent liking. I know I am good at what I did because it just put my 1/8th of the effort that I am capable of to match with others who had gone through hours of brainstorming to achieve what they have acheived. But after living through this and having almost 7 years of work life. I had absolutely nothing to show for it. Including the penny balance in account which does not even meet up my monthly needs. Add to this si