I am going to keep this post as short as possible. What is important is that you read it, remember it and implement it:

• Keep Investing as simple as possible, simple investments yield good results
• Do not invest in products that you do not understand
• Most complexities in products are created so that the manufacturer makes a lot of money – be aware.
• Insist on a margin of safety
• A high pe ratio is not just risky, it makes getting a good return almost impossible
• stay away from ‘free’ advice – there is no free lunch
• if you do not know who is paying the bill at the dinner table / poker table, clearly it is YOU.
• be patient. Remember Dravid has more runs, more respect, and a higher average than Sehwag.
• Risk is not a number. It is a goddamn PERMANENT loss of capital and it HURTS..
• Be a contrarian – but to know that maintain an investment diary and record your thoughts
• One index fund, One term insurance, one credit card, one savings account, …..anything more is a waste of time