To be an equity investor is difficult. For some, it can be downright scary. The fact remains that more people lose money in equity investing than make in it. Why is that so?
You see equity investing is a science. There is a whole lot of financial analysis and valuation methodologies that enable an investor to make decisions. Interestingly, it is an art too as it is subject to ‘views’ of individuals. The simplest example of it being an art is that one company can be valued very differently by two individuals.
The real magic of investing happens at the ‘horizon’ where the ‘art’ and ‘science’ meet.
I have been on the search to find real world investors who practice this amalgamation of ‘art’ and ‘science’.
By pure chance, I came across Balaji Sridharan, an equity investor who also has a full time job as a CXO of an organisation. Balaji has generously shared his approach and thought process on equity investing.
You might be investing in direct equity or via equity mutual funds or just be getting prepared to start your journey as an equity investor, I am sure you will benefit from his ideas. I have benefited for sure.
This is Part 1 of the note. You can read Part 2 here.
So, let’s read what Balaji has to share.