Wise Wealth Advisors

D.Muthukrishnan (Muthu), Certified Financial Planner- Personal Financial Advisor

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Archive for the ‘Tweets’ Category

Nuggets for 25th November

Posted by Muthu on November 25, 2017

Some of my recent tweets:

1)As much as we focus on gains, avoiding permanent loss of capital should be the main investment objective. We gain by not losing.

2) If you look for certainty or lack of problems, you would never get an opportunity to invest. Problems would continue to be there but so is progress.

3) Celebrating others investment success and not gloating over their misery would cure us of envy.

4) In initial phase of investing, better to lose than gain. Else it creates an impression making money is very easy. Nothing can be more dangerous than this thought.

5) Foolish decisions can take us back even by a decade in terms of wealth. Avoiding wrong is more important than doing right.

6) Following discipline, developing patience and avoiding fads are really hard. But whoever said making money is easy?

7) If future looks certain and clear, it’s likely that we’re underestimating risk.

8) More patient you are and longer your time horizon, you’ll do very well as an equity investor.

9) In investing, most of the time, activity is your enemy and inactivity is your friend.

10) Those who come to markets to make quick money usually don’t last long. Be ready to grow with the businesses you own.

11) We’ll act more sensibly with our investment decisions the moment we stop bragging about our success, especially of short term.

12) You sow the seeds now for say 5 years return. Keep doing it every year. At some point, you’ll start reaping fruits regularly.

13) If we don’t want to own a company for long run, it implies we are only looking for price and not business performance.

14) Not knowing how to make money in the short term is a blessing. Sustainable wealth is usually built only over the long term.

15) In bull markets, even bad ideas can result in gains. But what is obtained through one bad idea is given back through another.

16) In investing, it is not the effort that counts. It is patience.

17) For all long term investors, patience equals profit.

18) Long term investing needs tremendous discipline especially when you hear about people making quick short term profits.

19) Learn the art of money management. If you do that, you’ve to get rich only once and can stay rich. If not, even if you get rich, you cannot stay rich.

20) You don’t get what you want from the markets. You get what you deserve.

21) If patience and long term orientation comes naturally, you are indeed blessed. From what I see and read, these are very rare traits.

22) You randomly check with some investors how long they plan to own a stock or a fund. You would then realise how rare is holding something for a decade or two.

23) Our family and our clients invest with an intention to hold for 10 years or more. We’re a rare tribe and feel proud of the same.

24) Many a time, risk is not in the markets but in our behaviour.

25) Stock price is the shadow of business. It always follows business. Focus on the business; price would automatically be taken care off.

Posted in Tweets | Leave a Comment »

Nuggets for 7th November

Posted by Muthu on November 7, 2017

Some of my recent tweets:

1)We’ve no ability to avoid down markets. We stay invested through both ups and downs with conviction that equity does wonders in long term.

2) It is better to be optimistic always. But many get optimistic at peaks and pessimistic at troughs. Sure way to lose money.

3) Time arbitrage is your greatest edge. When most investors focus on short term, ability to focus on long term is a huge competitive advantage.

4) Even if tempted with super normal returns, don’t abandon the approach which works for you and able to stick during both good and bad times.

5) Luck plays a major role in outcome. But better your process and discipline, greater is the chance of luck leading to good outcome.

6) Look for long term track records. Returns from short term, especially during bull markets, conveys very little about the quality of process.

7) Bad is to live from paycheck to paycheck. Worse is spending in anticipation of future paychecks.

8) Market does not determine your fate. Your behaviour does.

9) Avoiding debt is the cornerstone of wise money management.

10) Traits like delayed gratification, patience and discipline need not be inborn. They can be learnt, put into practice and made as a habit.

11) Other than regular needs, better to postpone our wants by a month and see if we are still interested. This would prevent impulsive buying.

12) Save money during your working years so that money can save you during retirement.

13) Plan in such a way that you work for money for two decades and the money works for you for rest of the life.

14) You need not make money every month or every year. This expectation leads to disaster. Buy and hold knowing that gains are always lumpy.

15) Trying to make money in short term would prevent building good wealth over long term.

16) Knowing what to avoid is very important in investing. Avoid many wrong things, do few right things and then just stay the course.

17) Avoid investments with lock-ins. Hold long because of discipline and not due to compulsion. Never give up liquidity and transparency.

18) Discipline and patience scores hands down than intelligence in investment success.

19) For some, the only investment strategy seems to be making money faster from stocks. This is unviable and would lead to ruin.

20) Whether it is career, wealth or health, thinking long term and avoiding instant gratification is the key to success.

21) Businesses which take long term decisions even if it means short term pain deliver greater wealth to shareholders.

22) How much ever you develop knowledge, there would be many better than you. If you develop emotional balance, there is very less competition.

23) Overreaching for returns many a time ends in wealth destruction instead of creation. Instead of quick, focus on sustainable wealth creation.

24) Don’t look only at returns, especially short term. Look at the quality of process. Long term outcomes are primarily determined by process quality.

25) Mutual funds are best option for those who want to harness the power of equity but may lack time or expertise in stock picking.

Posted in Tweets | Leave a Comment »

Nuggets for October 22’nd

Posted by Muthu on October 22, 2017

Some of my recent tweets:

1)Instead of chasing new ideas, buying more of what we own is often the best thing to do.

2) Forget alpha, those who keep timing the markets would not even make index returns.

3) Would keep saying same things with different words. There is nothing new. Good advice is always repetitive and boring but invaluable.

4) You win by not losing. If you can avoid permanent loss of capital and earn moderate returns over long run, you’re surely a winner.

5) In investing, compounding creates wealth. In borrowing, compounding destroys wealth.

6) Don’t go for shopping to kill boredom. You’ll kill both boredom and seeds of future wealth. Start reading. It’s inexpensive and rewarding.

7) While you build wealth, learn to manage it as well. Ignorance and money rarely stay together.

8) Money does not buy happiness. True. But does poverty buy happiness? Money gives freedom. Up to us to be happy or miserable.

9) In investing, discipline wins handsomely over smartness.

10) Average IQ coupled with above average discipline is the recipe for success in investing.

11) Living below means is not being frugal or miserly. It is the right balance between consumption and savings.

12) What is worse than getting into debt? Signing surety for someone else’s debt.

13) Investing is like planting a tree. Both take times to blossom, except some activities need to be left alone to grow & would nourish generations.

14) Keeping things longer is one way to reduce expenses. For example, there is no need to change phone for every new version.

15) Possessions provide a false sense of superiority. Be really superior by achieving financial independence.

16) Don’t go by titles secrets of millionaires or how to attract wealth. Many have made it old fashioned way, high savings & living below means.

17) In a country like ours, where many lead a hand to mouth existence, ability to save is a privilege. Don’t let go of this opportunity.

18) If you Google and see past predictions, you’ll not take any current predictions seriously. Predictions grab headlines. Nothing more.

19) As much we focus on term or medical cover, need to have career insurance as well. Investing in knowledge and skill is the best career insurance.

20) We always stay the course not being carried away either by exuberance or gloom. This trait has been very rewarding.

21) In investing, what you don’t do and avoid is more important than what you do.

22) Without high savings and investing it regularly in equity during accumulation phase, financial freedom would remain a pipe dream.

23) Availability of fast and easy credit leads to poor choices. Buying through cash leads to better choices. One more reason to avoid debt.

24) Great investors speak to us through their books, blogs, tweets and interviews. What a great time we live in with access to them.

25) We find lot of news and information either irrelevant or toxic. Unless you’ve right filters, would be better off by consuming less of these.

Posted in Tweets | 2 Comments »

Nuggets for October 14th

Posted by Muthu on October 14, 2017

Some of my recent tweets:

1) Investing span is getting longer due to increasing life span. Make best use of time rather than chasing high risk returns.

2) Those who try to get rich quickly gets aggressive, use leverage, chase fads and end up poor. Enjoy the investing process & get rich slowly.

3) We see only returns and not how much risk has been taken to achieve it. Sadly for many, end justifies the means.

4) You need not be rich to enjoy small pleasures of life. Don’t try to compress the natural course to get rich fast.

5) Pareto principle is applicable for markets as well. 80% of returns come in 20% of time. Always stay invested as you cannot time the 20%

6) Getting rich is difficult. Staying rich is extremely difficult. You can get rich by even luck. But staying rich needs skill, knowledge and right behaviour.

7) To save more, you need to either earn more or spend less. If you can do both, you’re on the fast lane to wealth.

8) Instant gratification destroys wealth. Delayed gratification builds wealth. Instead of borrow and buy, aim for save and buy.

9) Our approach is if we cannot pay cash and buy something it means we cannot afford it. Why buy unaffordable stuff through debt?

10) Suggestion to buy next multibagger is exciting. Suggestion to change behaviour is boring. Boring is effective and long lasting.

11) If patience and right temperament is easy, everyone would get rich from markets. Difficult to practice but richly rewarding.

12) We consider debt as a luxury instead of slavery. The biggest luxury is living within means and not to have to answer lenders.

13) It’s a sign of rich to prefer complex structured products. In reality, simple products are best for everyone regardless of net worth.

14) Be alert when you come across terms like structured, linked & alternative asset. Can lead your financial life very well without owning them.

15) Many say they would start saving when their income grows. If you don’t save when income is small, you’re unlikely to save when income grows.

16) If you’re not a good investor, choosing good investments is of little use. Get behaviour right, everything else automatically follows.

17) Of all the good traits, patience is the most critical and invaluable one. This is the biggest edge an investor can have.

18) The best way to use credit card is to make full payment every month. The worst way to use is paying only minimum balance.

19) Not only its employees, as borrowers, we all work for the banks for most part of our career.

20) Growth happens over years. Why measure performance by everyday price movement?

21) Some people get rich quickly. They are exceptions than the rule. It takes not less than 2 decades of work to build wealth.

22) If you can save and invest 30% of your income every month for two decades, you’re most likely to become financially independent.

23) Impulsive buying is the enemy of high savings. Give a month gap between buying decision & execution. Time is the antidote for impulsiveness.

24) Sticking to the investment discipline in bad times differentiates between an average and a good investor.

25) High savings would ensure that you work for money for two decades and for the remaining four decades money works for you.

Posted in Tweets | Leave a Comment »

Nuggets for October 7th

Posted by Muthu on October 7, 2017

Some of my recent tweets:

1)In hindsight, we always feel bear markets were good time for accumulation. Then why we should fear them in future?

2) In bear markets, we think bull market would never come. In bull markets, we think it would last forever. Cycle prevails.

3) See the difference in economic narrative by media this week than last. We need to focus only on bigger picture and not sway with news flows.

4) Don’t seek excitement and thrill from investing. You’ll get what you seek but would not create any meaningful wealth.

5) If you want to be a better investor, there is no substitute for lifelong learning. Things evolve and you need to evolve along with it.

6) Resisting change may work only in short term and would be disastrous over long term. Be willing to learn and evolve.

7) The moment you think the knowledge you’ve today is perfect, learning stops.

8) Knowledge is freely available in abundance. Learning cost only time not even money. Investing in learning is as important as investing money.

9) If you can read and learn, you’ll never be short of investment ideas. Ideas are unlimited. Only capital to invest is limited.

10) You hold the keys to your financial heaven. They are high savings, continuous learning and right behaviour.

11) Many advisors focus too much on asset allocation in accumulation phase. Overweight on equity helps provided you can stomach sharp drawdowns.

12) Advisors should not go by text book rules. Need to develop independent view after taking into account clients life and financial situation.

13) You’ll make big money if you don’t go behind quick money. Would rate patience as the highest virtue in investing.

14) Where we constantly fail is losing our patience and swaying to the noise. Taking care of these two alone would improve our odds of success.

15) As much as savings, investing in oneself is equally important. Without human capital, creation of financial capital is very difficult.

16) Remember that long term view should not be changed based on short term news.

17) Saving more & giving time for investments to grow is realistic. Looking for ways to earn high return in short period of time is unrealistic.

18) No magic formula exists. Save more, take a long term view, give time to compound and have patience. This is the workable formula.

19) Borrower is a financial slave to lender. Avoid debt. Avoid slavery.

20) There has always been something to worry about. Despite this, growth and everyday life continues to happen. Focus on broader picture.

21) Debt increases the cost of ownership of depreciating assets. Income is uncertain. EMIs are certain.

22) When you borrow to buy, you own the depreciating asset and the lender owns you.

23) At best we may influence few thousands or only few hundreds. In debt and investment behaviour, people will continue to be what they are.

24) Difficult to predict future inflation, interest rate & returns. Even best plans can go wrong. Saving more is hedge against this uncertainty.

25) In markets, there are more pessimists than optimists. Optimism backed by right behaviour is worth its weight in gold.

Posted in Tweets | Leave a Comment »