Poke the Box: Never Give Up, Never Give Up, Never Ever Give Up

Let’s Start with Safal Niveshak
Just in case you missed any of this on Safal Niveshak over the last few days and weeks…

• Peter Lynch said, “Owning stocks is like having children, don’t get involved with more than you can handle.” Here’s a post that brings together diverse thoughts on how many stocks you should own.
• Some amazing lessons on life and money I learned from a taxi driver, Kantilal.
• Here’s an amazing e-book from Balaji Ganesan, a Safal Niveshak tribesman, on behavioural biases and how they impact you in your financial decision making.
• Carried an interview of value investor and blogger Ninad Kunder on what has shaped his life as an investor. Some really amazing stuff here!

Book Worm
I was reading Whitney Tilson’s The Art of Value Investing, and came across these thoughts from Seth Klarman on how an investor must deal with Mr. Market…

Most investors take comfort from calm, steadily rising markets; roiling markets can drive investor panic. But these conventional reactions are inverted. When all feels calm and prices surge, the markets may feel safe; but, in fact, they are dangerous because few investors are focusing on risk.

When one feels in the pit of one’s stomach the fear that accompanies plunging market prices, risk-taking becomes considerably less risky, because risk is often priced into an asset’s lower market valuation.

Investment success requires standing apart from the frenzy—the short-term, relative performance game played by most investors.

Stimulate Your Mind
Here’s some amazing content I read during the week gone by…

• Farnam Street shared some amazing thoughts on the importance of process over outcome.
• Michael Mauboussin speaks on the role of luck and skill in investing.
• 11 or 12 things James Altucher learned about life while daytrading millions of dollars.
• Seven tips from Ben Graham for the sinful investor.
• Jana Vembunarayanan, a Safal Niveshak tribesman, writes this brilliant post on Prisoner’s Dilemma.
• Meet the master of capital allocation, Henry Singleton.

“Nothing in the world can take the place of Persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. The slogan ‘Press On’ has solved and always will solve the problems of the human race.” ~ Calvin Coolidge

First, a short story – Two frogs fell into a bucket of cream. The first frog, seeing that there was no way to get any footing in the white fluid, accepted his fate and drowned.

The second frog didn’t like this approach. He thrashed about and did whatever he could to stay afloat. Soon his churning turned the cream into butter, and he was able to jump out.

Let’s now look at Warren Buffett. When he originally wanted to work for his mentor Ben Graham, Graham denied him a job. Buffett was shocked and asked why. Graham told him it was because he wasn’t Jewish. Graham wanted to save a spot in the firm for a Jewish person. To be fair, Graham was worried that Jews couldn’t be hired anywhere else on Wall Street so he wanted his firm to be Jewish-friendly.

Buffett however was persistent. He went back to Omaha but kept pitching ideas to Graham until Graham eventually hired him.

You see, persistence is the only sure-fire method for obtaining success – in life or investing.

While it’s important to strike quickly to reach your goal, you must also be prepared for a long campaign. You’re likely to get knocked down a few times. When that happens, get up. Everyone has setbacks.

Winston Churchill put it brilliantly when asked to describe the most important lesson life had taught him. He said – “Never give up, never give up, never ever give up.”

Keep poking.

Never give up.

Never ever give up.

Be kind to others, and to yourself.

Till next weekend…

Vishal Khandelwal
Chief Poker – Poke the Box