Blog on Value Investing | Safal Niveshak

3 Words to Change Your Short Life

Life is short!

That’s what was the unanimous answer of respondents (aged 70 to 100 and above) in a survey, when asked – “What are the most important lessons you have learned over your life?”

“Life is short,” a retired engineer told the researcher. “It passes in a nanosecond.” A 99-year-old woman said, “I don’t know what happened, but the next thing you know you are 100.”

Well, this research study was forwarded to me last night by a tribesman, Sudhir, and it led me to write this post, one not really on investing but on the more essential things in life – lessons on how to live life.

How to Create Your Circle of Incompetence

One of the oft-asked questions in my Art of Investing Workshops is…

“How can a small investor create his circle of competence?”

This is a very important question, because “circle of competence” is in itself one of the most important facets of successful investing.

Fear, Investing and You (Yes, You!)

In the course of my Art of Investing Workshops over the past three months, I have met several tribesmen who are fearful of starting out as investors.

Plus, there are those who have been investors but are extremely fearful of taking their next step, especially given the uncertainty around.

How to Live Prosperously Without the Paycheque (A Personal Experiment)

It’s been exactly two years since I quit my job to start on my own. A lot of people I meet now think I am lucky to be living a life of my own choice – following my passion…doing what I love doing.

But it hasn’t been hunky dory all the way. Living without an “almost certain” paycheque has been a difficult transition for me. But then, it’s a choice that I made, and thus have no regrets.

In fact, I find myself blessed and very lucky to be able to see this day, when I am writing to you about how I have been living happily, prosperously, and without a paycheque.

Nah, it’s no secret! It’s just the way I have started to define prosperity.

Are BHEL, EIL, SAIL Priced to FAIL?

First thing, SAIL is outside my circle of competence, and I have already written on BHEL and Engineers India (EIL)…so I won’t talk about these businesses here.

Rather I have a few questions for you, in case you are competent to answer them.

That Sinking Feeling Can Destroy Your Wealth

Imagine two scenarios.

Scenario 1: You are looking to watch that latest Hollywood action flick you’ve been waiting for the past six weeks. Going by the pre-release popularity of the movie, you’ve had to pay Rs 500 per ticket, which is almost 3 times the normal price.

However, you are excited for the movie so the cost doesn’t pinch you that much. Now, just a day before your show, a couple of your friends who’ve already watched the movie tell you that it’s not worth watching at all. The hero’s acting is poor, and the story is very predictable and boring.

What do you do? You’ve already spent Rs 1,000 for a couple of tickets for you and your wife.
[Read more…] about That Sinking Feeling Can Destroy Your Wealth

The Most Important Portfolio of My Life…and Yours

I met a long-time Safal Niveshak tribesman and a great friend Sanjeev Bhatia and his family yesterday. Sanjeev took out time from work to visit me in Chandigarh (where I am holidaying), travelling almost 100 km from his hometown, Ludhiana.

While Sanjeev looks pretty lean and young (as you can see above :-)), he has a couple of grown-up boys, one studying engineering and the other also looking to go that way.

Being from a family that has several engineers – including Sanjeev and his wife – it’s obvious for the kids to head in that direction.

Investing and Shortcuts

It’s human nature to want to get a job done as quickly as possible. Like you cross the street between intersections instead of using the zebra crossing, or jump a fence instead of using the gate.

It isn’t your problem!

Many of us have grown up being told that it’s important to accomplish as much as we can. But what we often aren’t told is that rushing can result in accidents, errors, and more time spent in the long run.

How to Lose Weight and Make Money Fast

“What is an article on losing weight doing on an investing blog?” you may wonder.

Now, you asked this despite that you opened this article expecting a real good way to lose weight in seven days. Isn’t it? 🙂

Anyways, you are not alone in this search for a quick fix to your weight issues, for this is what the world is searching on Google when it comes to losing weight…

As you can see, most searches are for losing weight fast and without much hard work – “in a week”, “fast”, “in 7 days”, “in 1 month”…and “without exercise”.

The truth is that, and this is what I have realized, the faster you lose your weight, the faster you regain it.

Analyze a Stock in 30 Minutes (Free Excel)

A few readers have accused me in the past of being a sadist who wants them to do the dirty work of analyzing companies on their own, instead of simply recommending stocks like so many other blogs do.

But I’d rather give you a compass instead of a map, for you can confuse map with territory and lose your life’s savings walking that path!

In this pursuit of handing you another compass, here is an excel file (see below) that you can download on to your PC, and analyze not just the past performance of a company but also arrive at its intrinsic value in 30 minutes or less (only after you already have the annual reports with you).