Author: devvratkumar.utk

Types of businesses that fail  David Rocker identified three types of businesses that fail: “frauds, fads, and failures.” Accepting and Learning From The Mistakes  “It’s okay to be wrong; it’s not okay to stay wrong.” People will do anything to downplay their mistake. That’s the biggest mistake. Accept it and…

Test of investor = Time  “Only a longer time span reveals the truly Prudent Man, who knows that the first rule of making money is not to lose.” What to sell: Sell your loser. Let your winners ride  You can cut your losses and let your profits run, and it…

Main Idea: “buy right and hold on.” Inactivity has a mathmetical advantage. People crave activity. If you open the news you are bombarded with buy/sell. This is counter intuitive but a lot of activities doesn’t improve your result in this game. “In Alice in Wonderland, one had to run fast…

Questions to ask before buying First, do I understand it? Second, is it good? And third, is it inexpensive? Value investing gives a better return over time than other strategies.  Look for ugly annual letters “A good rule of thumb is the prettier the page, the less useful it is.…

Never mortgaged, never borrowed for car He never had a mortgage, never borrowed to buy a car, and always had enough savings to live through a tough time. Bargain hunting—a pervasive life philosophy Bargain hunting does not have to apply to investment only. “Searching for the best deal is a…

Job of CEO “CEOs need to do two things well to be successful: run their operations efficiently and deploy the cash.” Choices of deploying capital investing in existing operations acquiring other businesses issuing dividends paying down debt or repurchasing stock Methods to raise cash tapping internal cash flow Issuing debt…

Charlie passed on the values of thrift, duty, hard work, and simplicity to the world. Charlie considered Ben Franklin his hero and got the value of lifelong learning, intellectual curiosity, sobriety, avoidance of envy and resentment, reliability, learning from the mistakes of others, perseverance, objectivity, willingness to test one’s own…

Pulak Prasad invests in businesses run by entrepreneurs, of which the entrepreneur is typically the largest shareholder. There are three rules they follow in investing: Avoid Type I Error Pulak pulls an idea from evolutionary theory where species usually choose to stay hungry compared to making mistakes that can take…