Ekansh Mittal

Dear Readers, Like most investors, are you prone to bouts of irrationality when it comes to investing in stocks? If yes, then read below. Charlie Munger was asked a few years ago to explain how he achieved his amazing success in the stock market. He thought for a second, and then replied simply:“I’m rational.” Implicit in Munger’s reply is that other investors are prone to bouts of irrationality. A rational investor, such as Munger, has an edge if other investors…

Dear Readers, With the markets scaling new heights, it’s easy to ignore quality businesses and fall into the traps of poor quality, low PE businesses with the assumption that such stocks too will get re-rated. Well, in the short term the stocks may get re-rated, however if the business of the company isn’t good or if the business is cyclical, then the fall in prices will be very vigorous and therefore at this point it is much more important to…