"There is no research to double money overnight"

Avoid stock channels: TV channels have to remain on the air 24x7 so they need sound bytes, views and opinions from experts round the clock. The views may be useful for speculators who trade several times in a day but a waste of time for long-
term investors.

The big picture: Focus on the fact that we invest for the long term, over a five- to 10-year period. As investors, we need to recognise that there will be challenges and changes in the macro environment, at a sector level, or even within a company, and we need to evaluate and assess how these companies will perform across business cycles. 

Invest in managements: Invest in the abilities of senior managements and founders of companies and not in their quarterly numbers. We trust they will make the right decisions and treat minority investors with fairness and respect. If we own 1% in a company, we deserve 1% of its attributable profit — not more and not less. 

Process is important: There is no research or investment process to double money overnight or in short periods of time. But believe in a process and a discipline that allows us to avoid wild bets and identify good businesses run by good managements that can deliver less bumpy returns over the long term.

  Stay focused: Respect the fact that the stock market is a place where people have different opinions on the same set of facts. Don’t get swayed by wild swings perpetrated by daily traders. If we stay focused on what we set out to be — being disciplined, long-term investors — we will not be distracted by the noise around us.