Harish Kawalkar
3.3K posts
@kawalkar
Biology Student, Reader, Writer and Value Investor. Feel blessed & honored to be followed by @MohnishPabrai
Today we release the next video on investinghub.in @kawalkar discussed a 10-bagger stock from his portfolio and explains why he continues to be bullish on it!
Individual stocks can fall like this or even become zero. There is nothing new in this. If you're not an expert stock picker but want to enjoy the process of stock picking, don't allocate more than 10% to 20% of your financial asset to direct stocks. If you're a stock picker who go by tips, eager to multiply money fast - you should not be even in stock picking. If you are an average stock picker investing only in fundamentally strong companies, even then don't beyond 33%. Invest in equity through mutual funds. Vast majority of direct stock pickers don't come anywhere close to returns generated by fund managers. Be it stock picking in particular or making money in general- it looks deceptively easy. The reality is most wealthy people became so because of earning high income and did not become wealthy through investing prowess. Legends make it appear investing is easy. It is easy for them because they are legends. For lesser mortals like us, it is one of the difficult game on earth. Focus on improving your income through human capital. Leave investing to fund managers. If you are not a fan of active fund management, simply invest in index funds. The time and energy you spend on stock picking is better spent either on upgrading your skills or even simply relaxing.
How much cash should a company hold? See our latest: Cash Holdings: Data, Theory, and Alternatives @dcallz -We seek to discern the proper amount of cash a company should hold, a big issue in capital allocation. - Cash is at the same time a non-productive holding and a resource that provides financial flexibility. - Empirical data on the cash holdings of public companies in the U.S. since 1970 reveals a steady increase since 1990 driven by the rise in intangible assets. - We discuss theories of why companies hold cash and review options to disburse excess cash.
