Unlocking the Secret of Investing: When to Act and When to Wait

Today, I want to share with you a profound perspective on investing that I stumbled upon, and it has completely changed the way I look at taking action in life. It's a lesson I learned from Vinod Sethi, the former MD and CIO of Morgan Stanley India, during a fascinating conversation I had with him on The One Percent Show (watch here - • The One Percent Show w... .
This insight is all about the art of separating hard work from action and the wisdom of waiting for the right moment to make a move.
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To know more about my book - The Sketchbook of Wisdom - which Morgan Housel calls "a masterpiece," please visit - book.safalnive...

[@awskaran]

One of the best podcast episodes. Loved it.

[@ajays070]

Thank you sirji....

[@saurabhgoel4241]

Thankyou Sir, for giving us (retail investor) a great insight

[@hemantkumarsaxena7101]

Keep going sir.... kindly upload such videos on daily basis

[@Truthcentral]

Thanks Vishal ji . Please do maintain the momentum of uploading content it's really very helpful

[@chanduprajan5436]

What a wonderful idea Sir. Thank you so much❤❤

[@One_Inv]

Think this can be summed up in what Pabrai said about Munger: "Charlie Munger will go into a supermarket and look for the things that he loves, and then he keeps going back every day until what he loves has dropped in price, and that's when he buys it."

[@dhavalrohilla696]

So isn’t it like timing the market because you are waiting for the right price to pay , and that price may or may not come ,and probability of events like Covid ,wars happening are very small,till then the cash is getting evaporated by inflation

[@One_Inv]

@@dhavalrohilla696 Yes, you are correct. In a sense, we are timing the market. However, I believe that is a bad thing only when we depend upon the market to give us a good exit. For example, timing a trade in a stock selling at a P/E of 100 so that we can sell it at a higher price. We would be hoping that there would be someone who buys it at a higher price (google Greater Fool Theory for more) When we pay a high price, our downside is generally higher. Even the best companies would not be an attractive investment at a high price. Howard Marks aptly noted "There's no investment idea that is so good that it can't be spoiled by too high an entry price." It is always best to compare your potential investment opportunities with the Interest rate on Government Bonds (hurdle rate), which are extremely safe (In large countries). For example, why buy into a company at a 100 P/E (1% yield) if Bonds trade at 10%? Such an investment is rational ONLY if a- There is a lot of growth b- opportunity size is huge c- certainty is high. Else, our downside is huge With respect to the inflation part, that is an unfortunate reality. We can reduce its effect only by holding the best ideas that we have. Berkshire has a huge cash hoard due to a lack of opportunities, but smaller investors normally shouldn't have that issue. We will have some cash on hand in order to take advantage of any opportunity that may arise. Maybe 10% of your portfolio I hope you got my point😄

[@One_Inv]

@@dhavalrohilla696 “Some argue that holding significant cash is gambling, that being less than fully invested is akin to market timing. But isn’t a yes or no decision the crucial one in investing? Where does it say that investing means always buying something, even the best of a bad lot? An investor who can’t or won’t say no forgoes perhaps the most valuable tool available to investors.” -Seth Klarman Saw this quote right after i replied 😅

[@harikatragadda]

In other words, he is 1. Willing to wait for a long time, i.e. delay gratification. 2. Patiently wait for a Black Swan event i.e. luck. 3. Never lose sight of the target i.e. focus.

[@imdraditya]

❤❤