Below notes are taken while listening to youtube videos.
Date : 30/September/2020
We like to buy beach balls being underwaterderwater with water levels rising.
Protect capital against:
Grow capital by:
In order to protect capital, you need to invest, equities gives higher rates of return
Measure ourselves over a period of time that's appropriate, we feel real way to measure yourself is over a very long time period important one and we believe from one market peak to another market peak.
Investment Strategy: Desired Investment Attributes
a. Business with high ROTAs( returns on tangible assets) b. Example consumer staples, low price used on regular basis. They have edge because they can manage capital much efficiently. c. High market share and keeping the capital working you can make lots of money. d. Eg: John Deere tractor business 17 years life cycle whereas toothpaste lasts only a month. So consumers companies handle well.
Investment process of management of the company, when you buy equity, some part you get as dividend and other retained by management for reinvestment that's the wildcard. For long term second part is more important as it gives you more return. Management has 5 basic options on how to use the retained money,
Low Purchase Price
Date : 29/September/2020
Self-Assessment Make a careful exploration of who you are and the work that you've been given, and sink yourself into that Don't be impressed with yourself. Don't compare yourself with others. You must do your creative best with your own life.
One thing. Idea of one thing is that you have clear priority. If you align your priorities over time. You get huge momentum and leverage in your actions. 2inch domino can knock down Eiffel tower.
Compound interest is the eighth wonder if the world. Good habits, diet, financial habits compound. Live on less than I earn and invest the rest. Positive habits and negative habits define us and being aware of them and purposeful in building them is one of the powerful thing you can do. If you start working for your habits, whats beautiful is quickly they will start working for you. Success is sequential not simultaneous. Look at your to-do list on weekly basis and prioritze them. In the todo list always prioritise by numbering them. Work on the one.
What is your WHY
Habits of the Wealthy
Date : 30/September/2020
“I’m no genius. I’m smart in spots—but I stay around those spots.”
— Tom Watson Sr., Founder of IBM
rational : based on or in accordance with reason or logic.
Date : 01/July/2020