Some important lessons in Investment management and Investment experience….

1. Investment Management Fee hurts: I never wanted to do PMS for a fee. This hurts the customer – especially if the client cannot understand that I would drive like a maniac! Imagine the risk that I would take – just to earn my fee. I would prefer that I choose to help you in your behavior for a fixed fee charged by the mutual fund.
2. Brokerage business TODAY conflicts with wealth building for a client: I have a broker who is more interested in my wealth creation than his brokerage income. However, such people are difficult to find TODAY.
3. Investment team will not work: I never hired somebody expensive to do what I could ask him/her to do. I have bought research reports (made them too) but never hired a full time research person.
4. Talking to 2 smart people for 2 hours is better than 2 weeks of research with just the annual report and Google.
5. Conviction is difficult: When I bought Coromandel International in 1986 the person who was selling was Idbi! They were sitting on the board. I was seeing a turnaround, STILL surprised that they couldn’t see it.
6. You can be right, market can be wrong – ONLY IN THE SHORT RUN. I could spot some arbitrage opportunities – I am still surprised that nobody else thought it worthwhile to do the transaction.
7. Do not argue with the market – it is like spitting against the wind.
8. When a fund manager tells you interest rates will go up, and you believe it, there are many things that you can do to benefit!

more…..to come…as always..