Rakesh Jhunjhunwala‘s 10 commandments for investors
Rakesh Jhunjhunwala‘s 10 commandments for investors (tips on how YOU can be a great investor):
Rakesh Jhunjhunwala is not a legend for nothing. Not content with telling us what techniques we should adopt whilst picking our portfolio, he also tells us what mental attitude we should cultivate to be a successful investor.
(i) Be an optimist! The necessary quality for investing success;
(ii) Expect a realistic return. Balance fear and greed.
(iii) Invest on broad parameters and the larger picture. Make it an act of wisdom, not intelligence.
(iv) Caveat emptor. Never forget this four-letter word -R-I-S-K.
(v) Be disciplined. Have a game plan.
(vi) Be flexible. For Investing is always in the realms of possibilities.
(vii) Contrarian investing. Not a rule, not ruled out.
(viii) Its important what you buy. It’s more important at what price you buy.
(ix) Have conviction. Be patient. Your patience may be tested, but your conviction will be rewarded.
(x) Make exit an independent decision, not driven by profit or loss.
Each of the said 10 commandments deserves to be etched in stone and read and re-read everyday by anyone who aspires to reach the heights of Rakesh Jhunjhunwala!!
ref - http://www.rmdhar.com/index.php/2010/05/09/rakesh-jhunjhunwalas-investment-techniques/
Soft Skills
Soft skills is a sociological term relating to a person's "EQ" (Emotional Intelligence Quotient), the cluster of personality traits, social graces, communication, language, personal habits, friendliness, and optimism that characterize relationships with other people. Soft skills complement hard skills (part of a person's IQ), which are the occupational requirements of a job and many other activities.
hard skills vs soft skills:
In the world of work, “hard skills” are technical or administrative procedures related to an organization’s core business. Examples include machine operation, computer protocols, safety standards, financial procedures and sales administration. These skills are typically easy to observe, quantify and measure. They’re also easy to train, because most of the time the skill sets are brand new to the learner and no unlearning is involved.
By contrast, “soft skills” (also called “people skills”) are typically hard to observe, quantify and measure. People skills are needed for everyday life as much as they’re needed for work. They have to do with how people relate to each other: communicating, listening, engaging in dialogue, giving feedback, cooperating as a team member, solving problems, contributing in meetings and resolving conflict. Leaders at all levels rely heavily on people skills, too: setting an example, teambuilding, facilitating meetings, encouraging innovation, solving problems, making decisions, planning, delegating, observing, instructing, coaching, encouraging and motivating.
Examples of soft skills:
§ Participate in a team (see team building)
§ Lead a team (see leadership)
§ Unite a team amidst cultural differences
§ Teach others
§ Coach others
§ Motivate others
§ Provide services
§ Negotiate
§ Decision making
§ Problem solving
§ Observe forms of etiquette
§ Active Listening
§ Maintain meaningless conversation (small talk)
§ Maintain meaningful conversation (discussion/debate)
§ Defuse arguments with timing, instructions and polite, concise language
§ Foresee situations
§ Establish rapport
§ Empathic communication
§ Self-awareness
§ Proactive Attitude
ref:
http://en.wikipedia.org/wiki/Soft_skills
Top Soft Skills a Managerial Candidate needs to possess -http://jobs.aol.com/articles/2009/01/26/top-10-soft-skills-for-job-hunters/
Top 60 soft skills at work - http://www.rediff.com/getahead/2007/jan/08soft.htm
Top 10 Soft Skills for a Manager - http://management.about.com/b/2008/09/28/top-ten-soft-skills-for-managers.htm
Investment Books
The top 7 Investment Books can give invaluable advice. The advice is provided by the giants in the field whose successful strategies have created affluence and wealth. The top 7 investing books include:
1. The Intelligent Investor
This is arguably the best, and most influential book ever written about value investing. Written by Ben Graham in 1949, this has earned rave revues by many notable investors over the years. Warren Buffett considers this “the best investing book ever written”. In this book, Graham presents investing styles for two types of investors – one for ordinary, risk-averse people who have no time for worrying about their portfolios (“defensive”), and the business man or woman who take risks and enjoy maximizing returns (“enterprising”).
2. One Up on Wall Street
It is often said that One Up on Wall Street is the first or second book any new investor must read. The famous mutual fund manager Peter Lynch builds upon the common knowledge and teaches the reader the advantages of leverage.
3. The Essays of Warren Buffett
Most professional investors have read the Berkshire Hathaway shareholders letters, written by Buffett. Professor Lawrence Cunningham arranges Buffet's corporate “essays” in order of relevance and subject. This book is a great tool to learn about management, valuation, investing strategy, stock options, economic goodwill and good accounting practices.
4. Common Stocks and Uncommon Profits & Other Writings
Philip Fisher is revered as, possibly, the most influential and articulate financial thinkers in history. In his book, he identifies fifteen qualities that he considers necessary for any good business. Using this knowledge in tandem with Graham’s “value” method, can be a very powerful tool for market analysis.
5. Security Analysis
Professor Benjamin Graham wrote this book in 1934. After five editions, and a million copies later, this seven hundred page book is still the last word in how to value and analyse almost any investment. If you are serious about your investment portfolio, this book will definitely change your life for the better.
6. How to be a Billionaire
Taking you through the financial odysseys of many American billionaires and their strategies. The book covers a span of more than a hundred years and a wide array of names; from Getty and Rockefeller to Bill Gates. It highlights the strengths of these titans in easy to decipher language. This book is not only informative, but a fun and easy read.
7. The Interpretation of Financial Statements
As an investor, you need to be able to read and understand financial statements. This classic book makes this very easy and simple to understand your financial statements.
Miscellaneous:
Stocks for the Long Run Third Edition Jeremy J. Siegel
Smart Women Finish Rich David Bach
Smart Couples Finish Rich David Bach
The Million Dollar Car and $250,000 Pizza Allyson Lewis
Rich Dad, Poor Dad (A) Robert T. Kiyosaki
Rich Dad, The Cash Flow Quadrant (A) Robert T. Kiyosaki
Rich Dad Advisors, Real Estate Riches (A) Dolf de Roos
The Art of Asset Allocation David Darst
ref:
Know Yourself !
The Japanese have a belief in three great powers:
1. The Sword (weapons)
2. The Jewel (money)
3. The Mirror (self-awareness)
The most valuable of the three is the mirror, or knowing yourself. Without this knowledge of self you will have no direction in life and in your business.
To-Do List
1. Stop what you’re doing. Take a step back to assess your situation. Stop doing what is not working and look for a new option.
2. Look for new ideas.
3. Take action. Find someone who has done what you want to do. Take them to lunch. Ask for tips.
4. Take classes and buy tapes.
5. Make lots of offers. Finding a good business deal is a lot like dating. You must go to the market and talk to a lot of people, make offers, counteroffers, negotiate, accept and reject. Many single people sit at home waiting for the phone to ring instead of going out and hitting the dating scene.
6. Take a walk through your neighborhood and look for bargain real estate deals.
7. Buy the pie and cut it into pieces. People buy only what they can afford so they think small. Think big. This goes for land and other investments.
8. Learn from history. Colonel Sanders lost everything in his 60’s and started from scratch with a fried chicken recipe. Bill Gates became rich before he was 30.
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