– Stock markets are wealth creating machine. Invest. Sit tight and see yourselves becoming wealthy over a period of time.
– Buy when nobody wants to buy. Hold when nobody wants to buy or sell.
– Sell stocks only when you need to upgrade your life & meet “long term” needs. Like buying an apartment. Marriage. Children higher education. Retirement.
– Don’t sell stocks to meet short term requirements like traveling, buying an iPhone, etc.
– It’s rare that you find quality businesses at dirt cheap valuations. If you got them, it makes less sense to book out of them for a quick profit.
– Let your winners ride high. To make 100x, you need to hold till 100x & not exit at every 2-3x gains.
– Some months and decades pass without much happening, while certain days witness significant events.
– Stocks may keep moving irrationally in either direction. Your job is to remain rational & solvent both ways.
– Initial years are difficult in market. It takes years if not decades to make ₹1 crore. The next crore may come within few months.
– Tail end returns are enormous. A single day profit can be equivalent to your initial capital.
– It’s ideal to sit on profits while a stock is on the verge of multi year breakouts. It usually makes tons of money once a breakout is successful.
