CII Young Indians (Yi) Goa Chapter organised a virtual session on ‘The Discipline of Investing’ by Gautam Baid, CFA, Founder, Steller Wealth Partners and Author of the book The Joys of Compounding.
Speaking virtually from the US to an audience comprising of entrepreneurs, investors and other professionals from across CII Yi Chapters in India, during the session Gautam highlighted that a holistic approach to value investing and philosophy from his wide-ranging reading, combining practical approaches, self cultivation, and business wisdom. In the session on discipline of investing, he stated integrated strategies and wisdom of preeminent figures whose teachings have stood the test of time; drawing on the work of investing greats like Warren Buffett, Charlie Munger and Ben Graham, as well as philosophers and scholars. He further emphasised that there is no single strategy that works all the time and in every kind of market, and hence it is essential to build up one’s investing arsenal to be able to hunt for value from within different areas. And it takes discipline to make long-term gains in the stock market.
He also stressed that most importantly, before making any investment, one must study about the company, its competitors, company filings, and annual reports of the last 10 years. Gautam also suggested reading the financial statements, outlining the management discussion and analysis section where one can grasp changes in management tone and industry outlook and observe recent trends in insider shareholding. Once the initial round work is covered, one can proceed to study parameters such as income statement analysis, cash flow analysis, balance sheet analysis, returns ratios analysis, operating efficiency analysis, management, and quality analysis.