Had an interesting conversation – “what is the feeling on Markets? I think further selling will be there. Everything is robotstockgoing against the economy Crude, Rupee, Earnings, Monsoon. Global issues not cooling down, Greece planning to exit Euro, China Production is slow, Saudi might again attack Yemen. Yaa but we had a spectacular run up this year as well as all in anticipation.  Macro was improving and micro we were discounting and were giving time, but now Macro is against us and micro will take time to improve. People are booking profits big time I think ….”

To be honest no one knows how market will react, if you are keeping these points in check probably you might do well :-

  • Saying “I’ll be greedy when others are fearful” is much easier than actually doing it.
  • The gulf between a great company and a great investment can be extraordinary.
  • Not a single person in the world knows what the market will do in the short run. End of story.
  • The analyst who talks about his mistakes is the guy you want to listen to. Avoid the guy who doesn’t — his are much bigger.
  • You don’t understand a big bank’s balance sheet. The people running the place and their accountants don’t, either.
  • Most of what is taught about investing in school is theoretical nonsense. There are very few rich professors.
  •  The majority of market news is not only useless, but also harmful to your financial health.
  •  Professional investors have better information and faster computers than you do. You will never beat them short-term trading. Don’t even try.
  • How much experience a money manager has doesn’t tell you much. You can under-perform the market for an entire career. And many have.
  • However much money you think you’ll need for retirement, double it. Now you’re closer to reality.
  • The next recession is never like the last one.
  • Remember what Buffett says about progress: “First come the innovators, then come the imitators, then come the idiots.”
  • And what Mark Twain says about truth: “A lie can travel halfway around the world while truth is putting on its shoes.”
  • And what Marty Whitman says about information: “Rarely do more than three or four variables really count. Everything else is noise.”
  • The bigger a merger is, the higher the odds it will be a flop. CEOs love empire-building by overpaying for companies.
  • Investments that offer little upside and big downside outnumber those with the opposite characteristics at least 10-to-1.
  •  The most boring companies — toothpaste, food, bolts — can make some of the best long-term investments. The most innovative, some of the worst.
  •  The best investors in the world have more of an edge in psychology than in finance.
  •  What markets do day-to-day is overwhelmingly driven by random chance. Ascribing explanations to short-term moves is like trying to explain lottery numbers.
  • There is virtually no accountability in the financial pundit arena. People who have been wrong about everything for years still draw crowds.
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