Ishan Martins’ Post

There’s no mega lottery if your returns are more than another persons. One doesn’t become a genius if a pathetic stock goes up 100% over a strong business rising 10% . Bill Ackman famously said; If you can’t explain what the company does in one line, you shouldn’t own it. Circle of Competence. Until recently when I became extremely risk averse. Let the market price a stock however it wants to. It rewards and destroys wrong companies on a daily, monthly and yearly basis. • The stock market is a story of the fittest characters that will play and continue to play a role in it. Characters die, and that is why you should be careful to not back the wrong one. • Just because it’s cheap, doesn’t mean you should buy it. • Maybe it’s cheap for a reason. • “How much lower can it go?” In One up on Wall Street, Peter Lynch explains a personal story. (++ It’s okay, if your returns are in line with the index and even below it. As long as the fundamentals of the company haven’t changed ++)

Small companies offer higher returns. But, small companies are also very risky. How do I relate risk and returns? Higher the returns, higher the risk. Remember, a swing-swings both ways. If the rise of a stock pushed a company 5% on a trading day, it can just as easily bring it down with gravity and then some 15% the next. If you can’t sell it, that’s how I equate risk. Look out for these markers; 1️⃣ If results are mediocre but a company paints a very beautiful illusion. 2️⃣ Not reinvesting into their processes, systems, technology and strategy for the future. (++ This is not investment advice, kindly do your own research to invest in the stock market ++)

What’s the biggest lie everyone tells in business? It is that you “should never be nice”. Yes, I’ve heard this too often.. “Good people are always taken advantage of.” Or, That he/she was too good to him/her. Here’s how you can manage it; 1️⃣ Have a reward based system. 2️⃣ Have a support based system. • A reward based system is a covariance of behaviour and company culture. • A support based system is one that employees help/teach each other skills, etiquette etc. • The second is, a detailed support for employees and their complaints. ((If this was helpful, do follow me for more interesting views on investment, culture and finance))