Tag: investing framework

The Quest for the Right Tail

The biggest returns earned over a long period would come from compounders—that is, companies who are monopolistic or oligopolistic and are able to grow their earnings power by 20% to 30% with a long runway. Find these companies and hold on to them for a long time. Focus not on price movements but on the company’s earnings power.

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Focus on Total Returns, Not Income Investing

The desperate search for yield has led to a number of people choosing to invest in income funds, or in mature companies providing a high dividend yield. On the surface, it might sound sensible, but it is erroneous. It may lead to investors underestimating the risk of investing in high yield instruments. Moreover, what is less obvious is the opportunity cost of focusing on yield ...

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How to Invest Better during Market Crashes

“Bull markets are born on pessimism, grown on skepticism, mature on optimism and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.”- Sir John Templeton In the two months after Feb 2020, the S&P 500 has been trading like a penny stock, making extremely volatile movements of more than 5% on ...

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Breaking Down My Investing Framework

I started my investing journey around 14 years ago, after reading Rich Dad, Poor Dad. The idea of acquiring income-producing assets resonated with me and I have since been consuming numerous books and resources on the web regarding investing. Today, I focus mainly on growing companies with a wide moat and great management in place. Looking back on my investing journey, I first started out ...

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