Try to buy stocks when they are distressed. => Safety of margin [ Mohnish Prabai ]
Go for less P/E for long term compounding.
Don’t rush to buy. There are so many companies in the market some of them will be distressed always. Wait for correction.
Whenever buying always think of long term[at least 3 years]. Keep long term in mind. No need to go for small cap when my required return is 15%. Don’t make bet on small companies not for you. Only go for cleanly managed companies with capable and proved management. A little higher P/E is okay. Multi-bagger should not be your aim. If it can give (15-18)% return with high conviction go for it.
Great business Great execution
even costly stocks can be an option this way ..
Healthy Investing Activities are very important for a sustainable business.
Moat: Brand, Network effect, IP, Establishments, Huge entry barrier, Gov. regulation
Always try to find at least three reason for not buying a stock.
Only after listing the three reason(however small or big they are) decide.
Simplicity beats complexity.
There is no easy money. Don’t go for noise(FOMO).
Never sell best performer for profit until you have a good reason. => I have made this mistake with many stocks like Avanti feed, Rain Industries etc.
Never buy something just because it is looking good right now at this price.
No need to go for small cap companies. You will never know much about them.
Don’t buy just because it is a momentum stock do your analysis.
Try not to follow herd go opposite.
invest for lifetime if not at least for 8 years timeline
Never try to get rich fast. NOPE NEVER!!