Views on Life & on Equity Investing

Wonder, Wealth & Abundance

Value investing indigestion

with 6 comments

I have respect for the work that Vishal (http://safalniveshak.com/) does to educate individual investors to become independent in their decision making and have sometimes read articles from Morgan Housel, http://www.morganhousel.com/

In this interview from Vishal, https://seekingalpha.com/article/4119368-interview-morgan-housel

I was shocked and bewildered reading this answer from Morgan Housel. Because those three instruments are near as near 0% of my net worth, as possible, and likely to stay that way all my life.

Q: How do you manage your own money? Is it through direct stock picking, or mutual funds, or both?

A: My entire net worth is a house, a checking account, and the Vanguard Total Stock Market Index. I don’t think investing needs to be complicated so I keep it as simple as I possibly can.

I’ve basically never watched financial news TV but this was a huge reminder to not follow certain financial writers who don’t have skin in the game.

As a spiritual aspirant I cannot be following a practitioner who himself has not experienced first hand the light, as a soldier a military general who has not fought on the front lines, a rock climber who has not scaled the heights. Given my journey in equities is about finding individual companies, what good would it be to invest time in reading someone who does not have the same goal and experiences? From Morgan’s viewpoint its perfect, he loves it, its his way, works for him. But someone else may be foolish choosing his path. For me, it was a realization that I will never read about a company from Morgan, so my expectations corrected massively.

Its not that there is nothing to learn from one another, we can even learn something from a goat or a house fly. But you need to know the goal post someone has before following them, otherwise you will suffer ‘value investing indigestion’.

I know its a broad generalisation and there are students who can surpass their coaches but things just aren’t what they seem to be. Its a world of paradoxes, Hollywood comedians are depressed in real life, famous people have empty lives, spiritual giants are unknown, happy people don’t advertise, they are quiet as the bee sucking nectar of bliss. As Vivekananda said, one needs a little bit of adulteration / ignorance to work actively in this world, people who are too pure like 24 K Gold don’t mix much in the world, jewellery / public popularity cannot be wrought from them.

It boils down to what you consider your core competence to be. There is no shortcut to finding who you are, nobody can do that job for you.

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Written by amitdipsite

February 10, 2018 at 10:11 pm

Posted in Uncategorized

6 Responses

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  1. Yup. Skin in the game heuristic of NNT is a the way 2 figure out whom 2 listen.
    Interviewer and interviewee both are academicians imho and so thats that.

  2. Sirji the more I try to think about it the more I realize, almost everyone has something to sell.. it’s that we don’t understand the business model of some people.

    Like in my observation, the business model of a few life hackers on podcast or motivation speakers is to give too.much of good advice so that you keep on coming back but unable to use it. Seneca’s second letter made me realize this.

    And second important thing which I remember reading on your blog itself is the quote by Vivekananda that I would rather train my mind for 25 years and then pour all the knowledge of books in 26th year because knowing something is not that much of an edge, we all know what should be done. It’s the execution of what should be done is important.

    Sarvdeep Malhan

    February 11, 2018 at 4:14 pm

  3. Hola, Amit.

    Am a bit surprised that you’ve found Safal Niveshak’s work noteworthy. Having interacted with him a few years ago, I’ve found him to extremely bookish. And actually, found him to be someone who is scared of investing in stocks! Yes, believe it or not, but to me he came across someone who is petrified of investing in stocks.

    He had a posted an article on his blog a few years ago. Some of the stocks quoted in the article went awry. When I questioned him, he said the stocks were not his recommendations, but the recommendations of his readers. Further, in 2013, his blog had a post titled “15 stocks for the coming stock market crash”. In Feb/Mar 2016, he had a blog post that was suggesting selling/cashing out of stocks and holding cash.

    Fortunately for me, I was actually buying stocks during both those time periods and a lot of those stocks did amazingly well.

    What Vishal’s good at is copying and pasting quotes from WB, CM & Graham. On that front, he’s impeccable actually.

    Cheers,
    Sam

    Sam

    February 19, 2018 at 1:31 pm

    • Hello Sam, I did not idea of Vishal but believed some who new zero about stock market will benefit with China NSE seed course on value investing not sure about Vishal’s stock picks.

      Many other rich and famous people lost 100s of crores and had to close PMS like Sandeep Sabharwal after poor performance, I agree being journo is different skill to picking stocks on gutfeel, Kind Regards, Amit

      amitdipsite

      February 19, 2018 at 7:21 pm

  4. Lots of typos in above…….. Hello Sam, I did not idea of Vishal’s picks but believed some who knew zero about stock market will benefit of investing crash course on value investing not sure about Vishal’s stock picks.
    Many other rich and famous people lost 100s of crores and had to close PMS like Sandeep Sabharwal after poor performance, I agree being journo or being charming is different skill to picking stocks on gutfeel, Kind Regards, Amit

    amitdipsite

    February 19, 2018 at 7:23 pm


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