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Investor Behavior & Traits

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Presentation made at Investors Carnival, Goa, 2018

Published in: Economy & Finance
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Investor Behavior & Traits

  1. 1. 1 Investor Behaviour Jiten Parmar Twitter - @jitenkparmar email : jiten.parmar@aurumcapital.in https://aurumcapital.in twitter - @Capitalaurum email : info@aurumcapital.in
  2. 2. 2 IMPORTANT DISCLAIMER: This presentation is prepared solely to provide information about behavioral aspects of an investor. This presentation is NOT meant for equity investment. It should NOT be construed as an investment advice for buy/sell/hold or any other form of recommendation. This presentation does not recommend any price or price target for any company discussed. Investment in equity shares has its own risks. The information contained herein is based on my study and upon sources that I consider reliable. I, however, do not vouch for the accuracy or the completeness thereof. This material is for educational purpose and not intended for any investment decisions. I am not responsible for any profit or loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the discussion thread above/anywhere in communication. It is safe to assume that I, my family, friends have vested interest in any of the companies/stocks discussed/presented here. None of this is a recommendation from Aurum Capital.
  3. 3. 3 An INVESTOR in the stock markets can almost never lose money. *Conditions Apply
  4. 4. 4 INVESTOR Traits TEMPERAMENT  Temperament is the most important aspect in investing  A temperate investor is one who focuses on these 4 aspects.  CONVICTION  DISCIPLINE  PATIENCE  SIMPLICITY  Be your own person. No one is going to fish for you. Even if someone does, turn that down. Learn how to fish, yourself
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  6. 6. CONVICTION comes from research comes from understanding the business and the sector you are buying comes from understanding the future potential of the company comes from buying it at a value (right price) comes from focusing on investing, and ignoring the noise Timing and TIME in the market, both are important 6 INVESTOR Traits
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  11. 11. DISCIPLINE  Be greedy when all are fearful and fearful when all are greedy  The HERD is mostly not right. Prefer LONELY trades  IGNORE noise. Greece, Brexit, Rexit, Trump and Kim tweets, temporary disruptions, trade wars, media. Most of the times, these are great buying opportunities  Understand the signals from the street  Absolutely avoid Euphoria and FOMO  Quest for multibaggers is a disastrous quest for most  Multibaggers are not planned , they happen over time 11 INVESTOR Traits
  12. 12. 12 Always have a mid and long term view. Always ask, can I take a 20-30-50% correction in the stock I buy, provided fundamentals are intact. Do I have the courage/conviction to buy when these levels come ? Investors will be better off looking at the long term picture. Ignore short term volatility and noise. Use them to your advantage. Equity investing is about long term investing. Understand market cycles. Make sure you are buying for fundamental reasons. Everything has a PRICE and a VALUE. Learn to buy VALUE. TIPs lead to PITs
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  22. 22. PATIENCE An investor is never a complete investor without seeing a bear cycle Bear markets, steep corrections, fear are essential parts of a market Investments made in a bear market will probably be the best investments you make Dividends are the best balm in bear markets Wait for opportune time to invest. Never lose sight of valuations I am from a school of thought which doesn’t believe in buying great companies at any prices. Wait for them to come at your buy level 22 INVESTOR Traits
  23. 23. Do more reading, understand industries in these times Learn from your mistakes. Mistakes are the best teachers Mistakes will happen. Try to make fewer and smaller over time Great investors adapt and are flexible Make notes. And review at regular intervals Time is an investors friend. Impatience, their enemy 23
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  30. 30. 30 INVESTOR Traits SIMPLICITY  Analyze, but don’t over-analyze. Over analysis often leads to paralysis.  Avoid too many data points. A lot are irrelevant most of the times. Learn to look at appropriate data points.  There is an EARN in LEARN  Reward WINNERS.
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  35. 35. Know your style (cricket analogy – Know the format you can play. A test match player may not be a good T20 player. Understand self) Be like “Rocky” (markets will throw punches at you, learn to take them, build your stamina to stay in the fight. Survival is key, and when time comes, deliver a knock-out punch) 35 Two Analogies
  36. 36. Stock market is the only market place where people are unhappy when the goods (stocks) are available at a good discount 36
  37. 37. 37 About OUR company: Aurum Capital is a research-based Investment Advisory services company. Started by Jiten Parmar and Niteen Dharmawat, who together have more than 4 decades of experience investing in equities and guiding and mentoring fellow investors. https://aurumcapital.in twitter - @Capitalaurum email : info@aurumcapital.in
  38. 38. Thank you 38

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