Why the Rich Are Moving From Cash to Gold | Money Printing, Inflation & India’s Opportunity | FWS 73
Published: 2025-10-15
Status:
Available
|
Analyzed
Published: 2025-10-15
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 20
Prediction
Topic
Status
The US is projected to be very close to a debt crisis, with approximately $30 trillion of debt needing refinancing in the next 4-5 years, leading to a significant reset.
"the debt crisis that they're going to go through... I think that you know we are in that stage where there's going to be a big reset happening and um the US is very close to a debt crisis so they are sitting on 37 trillion of debt all of that needs to get maybe 30 trillion odd needs to get refinanced in the next 4 5 years"
Pending
Further significant money printing by the US government (estimated $15-20 trillion in the next 3 years) is expected to drive up asset prices.
"If they end up printing about 1520 trillion in the next 3 years think about it what will happen to asset prices"
Pending
Mutual fund managers managing very large sums (over 10,000 crore) face limitations due to volume and SEBI regulations, preventing them from employing certain quantitative investing techniques.
"So you're saying that as a mutual fund manager because I'm managing more than 10,000 crores or one lakh cr I'm not able to do all of these quantitative model techniques because I'm dealing with a lot large number of volume and because there are certain restrictions imposed on me by sebi I cannot do this kind of investing that you're talking about"
Pending
A quantitative strategy involving ranking businesses by Return on Capital Employed and valuation, then buying the top 30 annually, is predicted to yield approximately 25% per annum returns.
"The little book that beats the market... you know if you run this formula wherein you rank businesses based on return on capital employed and based on a valuation filter say price to earnings or EV by EB if you if you just give 50 50% weightage and you buy the top 30 businesses year after year you'll see a very beautiful portfolio... I I think it would have done like 25 odd% peranom"
Pending
Promoters aged between 40 and 60 are statistically more likely to generate 5-10x returns in small businesses, as they have gained experience and are in their peak career phase.
"the perfect age is between like you know you want to catch them when they're young. Let's say like a 35 40 year old guy. So he's probably seen 10 15 years of you know good experience in the business probably seen as failures and then that's where his career takes off and then from 40 to 60 is probably his peak right and you want to hold him out then. So you want to buy small businesses when you're looking at small businesses promoters really matter. And that sort of we've seen that those stats that that between the age of 40 to 60 um you know making that say five or tenx the probability of making that is a lot higher."
Pending
The US is facing a potential debt crisis with approximately $30 trillion in debt needing refinancing over the next 4-5 years.
"the US is very close to a debt crisis so they are sitting on 37 trillion of debt all of that needs to get maybe 30 trillion odd needs to get refinanced in the next 4 5 years"
Pending
A major market reset is predicted to occur soon.
"we are in that stage where there's going to be a big reset happening"
Incorrect
Current AI stocks are trading at extremely high valuations. Investors should avoid them if future earnings cannot be reliably predicted, as this indicates a lack of margin of safety.
"if you look at it from just from a pure stock perspective, I think they're going at some crazy valuations. So essentially um to justify those valuations that we are running at today, the earnings number have to be crazy, right? And I don't think so anyone in the right mind is able to give that earnings number. So as an investor, right? If I were to follow even a subjective investor like a Buffett's principles, um I would say that if I can't predict earnings, I'm not going to touch the stock because then there's no margin of safety."
Correct
A significant market reset is anticipated in the near future.
"we are in that stage where there's going to be a big reset happening"
Pending
Approximately $28 trillion of US debt requires refinancing within the next four years.
"the $28 trillion of debt needs to be refinanced in the next four years."
Pending
For a safe portfolio, a 50% allocation to equities and 50% to gold is recommended due to the ongoing US debt crisis and anticipated market reset over the next four to five years.
"if you want to run a very safe portfolio today and I think like you know looking at where the US is looking at um the kind of money printing that's going to come in the next four five years the debt crisis that they're going to go through you're saying it's going to continue for four five years this crisis I think that you know we are in that stage where there's going to be a big reset happening and um the US is very close to a debt crisis"
Pending
Rising inflation is expected to lead to an increase in the prices of all asset classes, including real estate, equities, and gold.
"When inflation goes up everyone understands that all asset prices go up which is real estate equities gold"
Correct
A 50% equity and 50% gold portfolio is suggested for risk-adjusted returns, as it has historically shown lower drawdowns compared to pure equity or gold portfolios.
"So um the first thing is right if if you're looking at risk adjusted returns if you want to reduce a risk on the entire portfolio gold becomes a great addition. One of the reasons why 40% of our portfolio is also gold is if you look at the last 20 years of data if you plot a chart so if you look at nifty50 nifty is given about 12% peranom long-term returns maybe 20 years if you look at gold is also given 11 12% peranom if you put 50% of money in nifty and 50% in gold and you sort of merge that portfolio you look at the risk adjusted return so only nifty is 12% there are years like 2020 and 2008 where you've lost 40% 50% of your portfolio so that's the risk that you hold with equities if you look at gold it's done 11 12%. There have been bad years or you know two three bad years where you've lost about 30% of your portfolio. But when you combine these two they sort of are uncorrelated or have very low correlation to each other. The risk on the portfolio drops dramatically. You can make 12%. But you will not see more than like say 18 20% drop in the portfolio."
Pending
Gold is a good addition to a portfolio for risk-adjusted returns. A 50/50 Nifty/Gold portfolio historically offers similar returns to Nifty alone but with significantly reduced risk and drawdowns.
"So um the first thing is right if if you're looking at risk adjusted returns if you want to reduce a risk on the entire portfolio gold becomes a great addition. One of the reasons why 40% of our portfolio is also gold is if you look at the last 20 years of data if you plot a chart so if you look at nifty50 nifty is given about 12% peranom long-term returns maybe 20 years if you look at gold is also given 11 12% peranom if you put 50% of money in nifty and 50% in gold and you sort of merge that portfolio you look at the risk adjusted return so only nifty is 12% there are years like 2020 and 2008 where you've lost 40% 50% of your portfolio so that's the risk that you hold with equities if you look at gold it's done 11 12%. There have been bad years or you know two three bad years where you've lost about 30% of your portfolio. But when you combine these two they sort of are uncorrelated or have very low correlation to each other. The risk on the portfolio drops dramatically. You can make 12%. But you will not see more than like say 18 20% drop in the portfolio."
Correct
The US is facing a significant debt crisis, leading to desperate measures.
"the debt crisis is going to come and they're really desperate right now."
Pending
In times of currency depreciation and economic uncertainty, holding onto hard assets is advised.
"you have to hold on to hard assets"
Correct
Gold is currently at an all-time high, and a quantitative bet on gold was a significant part (40%) of their strategy.
"Even as we speak today Sharon I think gold is hitting an all-time high. said you know 1 lakh 18,000 right and um so 40% of that portfolio was gold and it was a quantitative bet right it was"
Incorrect
Buying apartments with 50 lakhs to 1 crore is not recommended due to illiquidity and market-specific challenges. Real estate investment is considered difficult and localized.
"if you're sitting on 50 lakhs 1 cr and if you buy a flat then I don't think that's a good investment you can... real estate is very it's also very um local like you know the Bangalore market can be very different from the Bombay real estate market right within Bombay the prices are very different you know depending on the area getting in getting out of a transaction also becomes hard"
Correct
Significant money printing in the next three years (15-20 trillion) is expected to drive up asset prices. Not investing is a bigger risk than investing, as currency value will decline, necessitating holding hard assets to avoid becoming poor in five years.
"print 1520 trillion in the next 3 years think about it what will happen to asset prices right? So you know even though we are in a volatile environment and there is some amount of risk to investing today I think the bigger risk is not investing because whenever they start printing in full throttle the value of your currency goes down is going to go down right so you have to hold on to hard assets you'll not realize you'll become poor in 5 years"
Pending
In an environment of significant money printing, hard assets like land, gold, and equities are expected to perform well. Not investing is a greater risk than investing due to currency devaluation.
"So you know even though we are in a volatile environment and there is some amount of risk to investing today I think the bigger risk is not investing because whenever they start printing in full throttle the value of your currency goes down is going to go down right so you have to hold on to hard assets you'll not realize you'll become poor in 5 years"
Correct
The real estate building business is considered poor due to significant portions of revenue going to banks and the government, along with high interest costs and unsold inventory.
"builder doesn't end up making a lot of money because most of the money is taken away by the bank and by the government... I think if you look at it as on one flat yeah it would make sense but if you look at as a whole if you look at the inventory that's left back if you look at the interest cost I think that like it's a very bad business"
Correct
Real estate is a great hard asset investment, particularly land and commercial properties, for individuals with 2-3 crore rupees. Investing in flats with 50 lakhs to 1 crore is not considered a good investment.
"but you know if you get a chance to invest in land than even that right but yeah I mean real estate as a hard asset is a great investment like a lot of people think I'm anti-real estate but I am all for real estate if you have two to three crores of money lying around because that is when you can actually play real estate the right way where you can buy land, buy commercial properties and all of that. But if you're sitting on 50 lakhs 1 cr and if you buy a flat then I don't think that's a good investment"
Pending
Stock prices consistently rising 10-20% before positive earnings reports suggests that some individuals possess insider information.
"before the result before good result the stock is already up 10% 20%. Correct. It cannot be a coincidence that the stock has moved before the result and especially a good result. Right. Right. That means that someone has some amount of information."
Pending
The AI boom is inevitable and will lead to significant changes across businesses.
"The AI boom is going to be there. But and and businesses are going to change because of this. We're seeing that today."
Correct
Real estate is considered an overrated sector due to its valuation methods (gross development value) which are hard to predict in terms of timeframe and realization. Additionally, a significant portion of revenue goes to the government, leaving limited profit for builders.
"I think one overrated sector if you were to ask me I think is real estate. Okay. Okay. So within real estate what they do is the way like the market values real estate is um they look at the cross development value which is how much space you know or how much uh development is going to happen by that company in the next four five years and they you know sort of value it against um the market cap of the company. So say for example like um Loa is at a 1 lakh 20,000 cr market cap and his presentation he say that we have say um a GDV or gross development value of say 2 lakh crores. Okay. right now that two lakh crores is very hard to predict what is the time frame and you know when it's going to come and so I think that that sort of industry is pretty you know overvalued for one reason that the industry you know when you take a make a real estate sale a large part of the money goes to the government the builder doesn't make a lot of money"
Pending
Currently, there are no clear second-place competitors that can rival Tesla's position.
"I can't even think of a second place competitor for this."
Correct
The most crucial factor in picking a business from a quantitative perspective is a high return on capital employed.
"I think like you know what I mentioned is sort of available everywhere. The the most important factor in picking a business is return on capital employed right. So I think if you buy businesses which have a um high return on capital employed"
Pending
Research In Motion (Blackberry) experienced an 80-90% stock price decline and is no longer a significant player.
"research in motion was the company name and I think it fell by like 80 90% and it's nowhere to be seen"
Correct
Warren Buffett views Apple not purely as a tech company, but as a retail business with strong brand power, capable of selling diverse products.
"He looks at it as a retail business. Tomorrow Apple can sell anything and people will buy it. It's the brand power."
Correct
Quantitative finance involves a top-down approach to asset allocation (e.g., equity vs. gold) and then selecting businesses based on specific criteria, answering what to buy, how much to buy, and when to buy.
"So essentially with with quant finance what we're doing is that ideally you want to do the first thing is you know from a top down approach you want to see how much equities you have how much gold you have in your portfolio once you decide that okay fine you know say I want like a 60 equity 40 gold right you want to come down to okay fine what kind of businesses do I want to buy in my equity portfolio okay right now I think the biggest you know the biggest challenge for most investors which stock to buy correct right so essentially you're answering two three questions um what to buy how much to buy and when to buy it"
Pending
Warren Buffett is currently holding a significant amount of cash, estimated at 35-40% of his portfolio.
"I think he is sitting on the highest amount of gas he's ever sat on. I think he's sitting on about 35 40% in the form of cash in his portfolio."
Incorrect
The Nifty 50 is considered a simplistic quantitative model, and it's possible to achieve better returns by applying more refined quantitative strategies.
"nifty50 itself is a quant model you can do a lot better than nifty"
Correct
A quantitative strategy involves selecting the top 30 businesses based on return on capital employed, applying filters for fraud and promoter activity, creating an objective framework, and rebalancing annually.
"So, you know this is what the book suggests we sort of amend it to you know what kind of portfolio I want to build but essentially you know anyone sitting at home can do this right you can even just buy the top 30 businesses based on return on capital employed right and then you can have some filters to check whether the business is a fraud or you know whether promoter is selling or buying or holding but ideally you create a very objective framework once you create this objective framework you buy the top 30 businesses and keep churning every year"
Pending
An initial investment of 10 lakhs can grow to 10 crores in 20 years with a consistent 25% annual growth rate (CAGR).
"If I have 10 lakhs 10 lakhs can become 10 crores in 20 years. Assume you can grow it by 25% CGR every year."
Pending
A simplified quantitative approach for retail investors: rank businesses by return on capital employed, apply fraud/promoter filters, create an objective framework, buy the top 30, and rebalance annually.
"So, you know this is what the book suggests we sort of amend it to you know what kind of portfolio I want to build but essentially you know anyone sitting at home can do this right you can even just buy the top 30 businesses based on return on capital employed right and then you can have some filters to check whether the business is a fraud or you know whether promoter is selling or buying or holding but ideally you create a very objective framework once you create this objective framework you buy the top 30 businesses and keep churning every year"
Pending
For inspiration in quant investing, readers are recommended to explore books like 'Beat the Dealer' by Ed Thorp and 'The Man Who Solved the Market' about Jim Simmons, emphasizing curiosity as a driving factor.
"Ed has this book called beat the dealer. He also has a book around the markets also. And Jim Simmons there's a book written on him called the man who solved the market. And I think when you read about these guys you figure out like you know how they came from a humble background. How they actually did this just because they were curious. Right."
Pending
Backtesting a quantitative strategy (buying top 30 businesses by ROC and valuation) from 2001 to present resulted in an estimated 25% CAGR.
"you do a back test right like you know you you actually seek you know create a simulation where had you done this from 2001 to now I I think it would have done like 25 odd% peranom"
Pending
The book 'The Little Book That Beats the Market' provides a formula for building wealth.
"that little book that beats the market. That beats the market. Right. Um, so that book essentially, you know, gives you that formula that how you can, you know, actually build wealth."
Correct
Starting the investment journey early is considered the most crucial factor for success.
"starting early is probably the most important thing."
Correct
When evaluating a business, a key principle is excellent capital allocation, which translates to a high return on capital employed.
"So essentially, um, you know, when I'm looking at a business from a first principle, you're thinking that you know, capital allocation is something that you know that the promoter should that that scale for capital allocation should be very good, essentially return on capital employed for a business should be very high."
Correct
Successful businesses exhibit both high return on capital employed and scalability, ideally growing at 30-50% annually while maintaining this high return as they expand.
"So, essentially um there's return on capital employed and then there is scalability. You want to back businesses which can grow at high return on capital which can do say 30 40 50%. And they can do it at scale right?"
Pending
A significant market reset is anticipated in the near future.
"I think that you know we are in that stage where there's going to be a big reset happening."
Pending
Brand value is a constant factor across industries, as exemplified by Warren Buffett's investments in companies like Coca-Cola, Walmart, and Nike, where brand strength persists despite evolving business models.
"One thing that remains constant across most industries is brand value. So if you look at the way Warren Buffett invests in say like a Coca-Cola right essentially what he's looking at is for brands or say a Walmart or you know if you look at a brand like Nike right um these guys the business models keep changing but brand value yet remains."
Incorrect
In a year when inflation reached 9%, the money that was printed by the Fed subsequently flowed into the markets.
"inflation went to 9% that year all that money that was printed actually came down to the markets"
Correct
During periods of significant money printing, hard assets like real estate, equities, and gold tend to perform exceptionally well.
"when you hear an asset, it you're only talking about real estate. I'm talking about equities. I'm talking about gold. I'm talking about real estate. All these assets do extremely well. But when I when I look at, you know, when there's extreme amount of money printing, I think hard assets end up doing extremely well."
Correct
The focus is on analyzing fundamental data to predict future earnings growth potential.
"I am trying to look at fundamental data to see how will earnings grow from here. Is there any scope for earnings growth?"
Unrated
The rationale for investing in gold is twofold: anticipated future money printing driving up its price, and its role as an asset driven by central banks.
"The call for gold essentially came from two things, right? One thing was that um lot of money printing is going to come into the future. They've already started printing a lot of money. So that's why price of gold will go up. Even price of land should go up. Um the second thing was that gold is sort of driven by central banks."
Correct
To predict earnings growth, analyze past performance: a promoter achieving 20% ROCE and 15-18% CAGR in sales and earnings over 4-5 years indicates strong business potential.
"So essentially to predict earnings growth what we looking at the past right so when we're looking at the past we're looking at if a promoter has given say a 20% return on capital employed and has grown the business say in sales and earnings has grown at say 15 18% peranom for the last four five years I think that says a lot about him"
Pending
When selecting businesses, focus on companies showing strong earnings growth in the last 2-3 years, especially those benefiting from recent tailwinds, rather than just their historical existence.
"So essentially even 2 3 years four years of good track record is enough. Yeah. So the company could be even 15 20 years old. But what happens is every company goes through cycles. So you look at some of the solar businesses, they've been existent since pre-200s also. Right? But they got this push from the government and you know um probably like 10 15 years ago they were very early in the industry and the industry didn't get that tailwind. But in the last 3 years we've been seeing a lot of earnings growth, right? So that's when you want to pick that business. You don't want to pick the business in 2000, right? You want to see where that tailwind is coming."
Unrated
The age of a promoter is a critical factor, particularly in mid and small-cap stocks. Promoters aged 35-40, with 10-15 years of experience and having navigated failures, are likely in their peak earning and business-building phase between 40 and 60 years old.
"So we sort of you know this data is not very freely available. We've been like trying to collect this. So it's also called alternate data trying to collect and note down the age of the promoter. Generally if you want to make like you know say a 50 bagger or 30 bagger or 20 bagger in a stock you want to make a lot of money in a stock. I think age of the promoter is extremely important especially in the mid and small cap space um you know the the perfect age is between like you know you want to catch them when they're young. Let's say like a 35 40 year old guy. So he's probably seen 10 15 years of you know good experience in the business probably seen as failures and then that's where his career takes off and then from 40 to 60 is probably his peak right and you want to hold him out then."
Pending
There is a growing belief that the US dollar will not maintain its superpower status in the next 10 years, and its value is expected to decline.
"I think um people are<bos> realizing that it's not going to be this now in the next 10 years. We're going to see a downfall."
Pending
The age of the promoter is statistically significant for potential stock returns (e.g., 5-10x), but this needs to be supported by data analysis to minimize the role of luck.
"So that age of the promoter but you know you want to back this by data you can't have one or two examples you know cuz a lot of people say 65 you know stock 10x so there are this entire entire world of quant works on stats right correct you want to sift out the role of luck"
Pending
Governments primarily use money printing and interest rates as tools to stimulate or control the economy.
"the only two things that the way they can stimulate or control the economy either printing or interest rates."
Correct
The age of a promoter is a crucial factor for significant stock gains, with the 40-60 age range being optimal. This data, considered alternate data, is being collected and analyzed.
"I think one thing that we've noticed is the age of the promoter. So we sort of you know this data is not very freely available. We've been like trying to collect this. So it's also called alternate data trying to collect and note down the age of the promoter. Generally if you want to make like you know say a 50 bagger or 30 bagger or 20 bagger in a stock you want to make a lot of money in a stock. I think age of the promoter is extremely important especially in the mid and small cap space um you know the the perfect age is between like you know you want to catch them when they're young. Let's say like a 35 40 year old guy. So he's probably seen 10 15 years of you know good experience in the business probably seen as failures and then that's where his career takes off and then from 40 to 60 is probably his peak right and you want to hold him out then."
Pending
Gold is a valuable addition to a portfolio for improving risk-adjusted returns and reducing overall risk.
"if you're looking at risk adjusted returns if you want to reduce a risk on the entire portfolio gold becomes a great addition."
Correct
Price movements before good results suggest insider information is being used. While SEBI investigates, only a small fraction of individuals involved in such practices are caught.
"so I think definitely there is you know this is happening because the price is showing that not because I know of someone or you know maybe even you know of someone. There are a lot of random people who say they have information and they probably heard it from the panwala. But I think if the price is moving and you know and it has happened before the result that means that there is something and I think sebi does look into these kind of matters and you know maybe one out of 50 people get caught right but"
Correct
The Nifty 50 index is considered a simplistic quantitative model, as it ranks companies solely based on free-float market capitalization without considering fundamental data.
"the nifty50 essentially is a quant model right what is the nifty50 is the top 50 businesses based on market cap correct free float market cap right there is no fundamental data behind it"
Correct
While AI is a disruptive technology and will change businesses, AI stocks are currently trading at extremely high valuations. Without predictable earnings, these stocks offer no margin of safety and could lead to significant losses, similar to the tech boom.
"So essentially, Shahan, when I'm looking at AI today and AI stocks and how AI as a whole has sort of helped quant investing, uh I think it's made the research process a lot faster for us. But if you look at it from just from a pure stock perspective, I think they're going at some crazy valuations. So essentially um to justify those valuations that we are running at today, the earnings number have to be crazy, right? And I don't think so anyone in the right mind is able to give that earnings number. So as an investor, right? If I were to follow even a subjective investor like a Buffett's principles, um I would say that if I can't predict earnings, I'm not going to touch the stock because then there's no margin of safety, right? If you're entering at say like a 100 times or 200 times or even a 300 times earnings, what's the margin of safety that you have, right? You don't know because if you're wrong, if the industry changes, you could lose probably 70 80% of your wealth also. And we've seen that in the past to the tech boom. So, this could be a disruptor. This will be a disruptor. The AI boom is going to be there. But and and businesses are going to change because of this. We're seeing that today. But does that become a great investment? No, not always. you know it might be a very you can find a very boring industry and you can make a lot of money because it's available at a cheap price."
Correct
By incorporating additional filters and common sense beyond simple market cap, investors can create quantitative models that outperform the Nifty 50.
"if you put those things in and you just use common sense essentially you can do a lot better than the nifty right the nifty is a quant model but a very silly quant model you can do a lot better than nifty"
Correct
Tesla is a leader in multiple disruptive fields: EVs, driverless vehicles, logistics, and robotics. Its significant head start makes it difficult to envision competitors surpassing it in the near future.
"So but let let me again maybe deep dive into Tesla. So Tesla is disrupting two things. one is the EV segment which we know is a clear energy transition shift government push as well and the leader uh obviously there is China BYD also coming up but obviously Tesla will have its own market share and second is driverless vehicles which is Uber's market right I'm going to disrupt you know logistics right without human involvement and ah one more thing last last thing is robotics like human labor completely disrupted like people working in factories no longer needed people helping us with our household chose no longer needed. You know, like robots coming and doing everything and Tesla seems to be the leader over there. If not the leader, maybe you'll have a meaningful market share for itself. I'm just trying to understand how could someone else come and beat Tesla right now because they're so far up in the game. I can't even think of a second place competitor for this."
Correct
Quant fund managers can effectively manage up to 2-3,000 crore. Projections suggest this capacity will increase significantly, potentially reaching 30,000 crore in 10 years due to market growth.
"I think like up to a 2 3,000 cr market could easily be managed there are a lot of PMSs managing 2 3,000 crores and doing very well but I think in the next 10 years we'll get there our market will be a lot bigger and you know if we were having this conversation 10 years ago I would say maybe you know I don't think I can manage more than 300 crores 10 years down the line when we speak again probably the number will be you 30,000 crores."
Pending
There is no first-mover advantage in many tech businesses. It is often more beneficial to be the second or third entrant, learning from the first mover's mistakes and technology.
"I don't think so there's a first mover advantage in these businesses and in this business it makes sense to be the second and the third mo because the first guy comes he spends all the money you know he builds all the technology and then there's a smart guy who learns from this copies this and then you know has one up in the game he knows what mistakes to not make right and that's what happened with the blackberry right"
Correct
A fundamental principle for evaluating businesses is high Return on Capital Employed (ROCE), indicating effective capital allocation by the promoter.
"The little book that beats the market... essentially what when you're looking at a business from a first principle you're thinking that you want to think that you know capital allocation is something that you know that the promoter should that that scale for capital allocation should be very good essentially return on capital employed for a business should be very high."
Pending
Warren Buffett invested in Apple relatively late, viewing it not as a tech company, but as a retail business with immense brand power, capable of selling anything.
"if you look at Buffett he invested in Apple very late in its game he invested like in 2017. Yeah. And he I think he entered at like a $30 and it was about 10% of his portfolio and it you know I think it's at 250 today. But he doesn't look at uh you know Apple as a tech he doesn't look at it as a pure tech business. He looks at it as a retail business. Tomorrow Apple can sell anything and people will buy it. It's the brand power."
Pending
Return on Capital Employed (ROCE) combined with scalability is crucial. Investors should seek businesses capable of achieving high ROCE (30-50%) and growing significantly at scale.
"So essentially um return on capital employed and then there is scalability. You want to back businesses which can grow at high return on capital which can do say 30 40 50%. And they can do it at scale right?"
Unrated
Warren Buffett's immense wealth is attributed to compounding a large capital base at 20-30% annually for 50-60 years, significantly leveraging funds from his insurance business (a form of 'free float') by investing them in the stock market.
"So if you look at the entire business model right how did Buffett become the richest person you know say the top three today by doing like say 20 30% peranom for like 50 60 years. A lot of people have done very well like Jim Simmons has done 60% for 20 years. I he should be richer. Essentially the capital base that Buffett has is very large. So he has he bought this insurance business back you know like 50 60 years ago. And what happens with an insurance business say like an LIC is you know we as you know as the public we go and you know pay premiums that premiums you know remains in the bank and that money needs to be repaid say at the end of my life after 30 40 years. So there's a free Buffett has that that free float right? So what he essentially did is that he took all that free float and invested in the stock market"
Unrated
Brand value is a constant factor across industries that remains important even as business models evolve, as exemplified by companies like Coca-Cola, Walmart, and Nike.
"One thing that remains constant across most industries is brand value. So if you look at the way Warren Buffett invests in say like a Coca-Cola right essentially what he's looking at is for brands or say a Walmart or you know if you look at a brand like Nike right um these guys the business models keep changing but brand value yet remains."
Correct
Warren Buffett is holding a significant amount of cash (30-40%) in his portfolio, suggesting he understands the current US economic situation and is likely timing the market, anticipating a major crash.
"and you know your question was he's sort of sold Apple. I think he understands where the US is. I think he is sitting on the highest amount of gas he's ever sat on. I think he's sitting on about 35 40% in the form of cash in his portfolio. I think 30%. But he shouldn't do that. No, because the currency is depreciating. Yeah. So I think he's trying to time the market. He's expecting a big crash."
Correct
The defense sector has demonstrated strong performance over the last 10 years.
"defense did extremely well. Right. Last 10 years defense has done extremely well."
Correct
A yearly expenditure of 1 to 1.5 crore rupees (approximately 10 lakhs per month) is considered more than sufficient for a luxurious lifestyle in Mumbai, including travel and other expenses, without financial worry.
"So say you have a car, you have a driver, you take vacations, you go to Switzerland, you know, you travel the world, you do whatever you want. I think 1 one and a half cr is more than enough. 10 lakhs a month kind of, right? 10 lakhs a month I think is more than enough for you to, you know, live a luxurious lifetime without worrying about it, right?"
Correct
A promoter's consistent track record of achieving 20% ROCE and 15-18% annual growth in sales and earnings over the past four to five years indicates strong business fundamentals.
"if a promoter has given say a 20% return on capital employed and has grown the business say in sales and earnings has grown at say 15 18% peranom for the last four five years I think that says a lot about him"
Pending
Beyond a certain point, the financial number itself becomes less important; investing transforms into a game of continuous improvement in research and skill.
"see essentially for me I think I look at it as a game right for me like life is a game and essentially investing also becomes a game and after a point you know for everyone I don't think you know whoever you are whether you're a buffet manga Ramde I think the number stops mattering right like I don't think so the number is you know I think it's a game that okay fine can I get better at this can I wake up and do better research"
Unrated
The probability of achieving a 5-10x return on a stock is significantly higher when the promoter is between the ages of 40 and 60.
"between the age of 40 to 60 um you know making that say five or tenx the probability of making that is a lot higher."
Pending
With a consistent 25% CAGR, 10 lakh rupees can grow to 10 crores in 20 years (100x growth), with the first 10 years yielding 1 crore and the subsequent 10 years yielding 10 crores.
"So realistically speaking today if you have 10 lakhs it is possible in the next 20 years that 10 lakhs can become 100 crores. If they generated 25% CGR it can become 10 crores in 20 years. Oh 100x right? Sorry 100. If I have 10 lakhs 10 lakhs can become 10 crores in 20 years. Assume you can grow it by 25% CGR every year. It's that simple. Just 26% CGR. So your first you know the first 10 years is your 10 lakhs becomes a cr and then the next becomes 10 crores."
Pending
A key objective of quantitative investing is to minimize the impact of luck on investment outcomes.
"the role of luck is very large as a quant manager what I want to do is reduce that role of luck as much as I can"
Correct
For inspiration into quant investing, the books 'Beat the Dealer' and another market-related book by Ed Thorpe, and 'The Man Who Solved the Market' about Jim Simmons are recommended.
"So I think there are there are two there are two books that I would look at. I think the first thing is that to get into quant investing you need to be inspired and for inspiration you would look at say like maybe three books for inspiration you want to look at Ed Thorp and you want to look at Jim Simmons. So Ed th has this book called beat the dealer, He also has a book around the markets also. And Jim Simmons there's a book written on him called the man who solved the market."
Correct
Countries experiencing war often see high inflation due to increased defense spending and money printing, which benefits corporations as the prices of goods rise.
"Pakistan and Turkey have been in a very high inflation environment because they've been in a state of war... what happens in in case of war is that the government ends up spending a lot on defense... they need to print money... So you keep printing inflation goes really high when inflation goes high the price of goods go up but who benefits when the price of goods go up right corporations."
Correct
The books about Ed Thorpe and Jim Simmons highlight their curious approach to beating the market, rather than solely focusing on wealth accumulation. For practical action, 'The Little Book That Beats the Market' is recommended.
"And I think when you read about these guys you figure out like you know how they came from a humble background. How they actually did this just because they were curious. Right. They just, you know, just wanted to know that how markets work and how they didn't play this game to become rich. They played this game because they wanted to beat the market. Curiosity. Yeah. Out of curiosity. And if you really want to, you know, take action, I think that little book that beats that that builds wealth. And there's a little book book that beats the market."
Correct
Gold's returns differ significantly across currencies due to their depreciation rates, with higher depreciation leading to higher nominal returns in that currency.
"If you look at gold in dollar terms, long-term would be say 7%. If you look at INR terms, it's 11%. Because of the currency depreciation of 3 4%. ... If you look at in say you know like Pakistani rupia, it would probably be like 30% peranom because their currencies depreciated at a much higher rate."
Correct
'The Little Book That Beats the Market' provides a formula for building wealth, which can be tested and implemented even in Excel.
"So that book essentially, you know, gives you that formula that how you can, you know, actually build wealth. Oh, there's a formula only. There's a formula. In fact, you can, you know, like take that formula down, run a few tests, you can make it on Excel."
Pending
Gold acts as a global store of value, independent of any single currency like the rupee.
"When you have so you know look at a very simple example. You give me a few notes. I'll give you a gold bar. Now you don't have anything to do with the rupee. You're holding an asset which you can sell anywhere in the world. Right? which holds value. So it's a store of value for you."
Correct
Anyone can beat institutions with simple models. Starting early in investing is the most crucial aspect.
"Um you can beat institutions by simple models. So I think you know why don't you get your hands dirty and start and starting early is probably the most important thing."
Pending
The Nifty 50 is described as a basic quantitative model based on market capitalization.
"the nifty50 essentially is a quant model right what is the nifty50 is the top 50 businesses based on market cap correct free float market cap right"
Correct
Prediction for Nifty 50 in 2030.
"So what is your prediction for the market 2030 prediction? What do you think Nifty50 will be at?"
Pending
Sophisticated quantitative models can significantly outperform the Nifty 50, which is considered a simplistic model.
"you can do a lot better than the nifty right the nifty is a quant model but a very silly quant model you can do a lot better than nifty"
Correct
The market, including hard assets like land, gold, and equities, is predicted to be significantly higher in 2030 than it is today.
"So it's going to definitely be a lot higher than what it is today. And I think um why I say that I think I say that for all hard assets whether it's land, gold or equities."
Pending
Recommendation for investors is to remain 100% invested, avoiding FDs, debt funds, and holding cash.
"if I speak to someone today and if they ask me what to do, I say you know you know whatever you do just remain 100% invested. Don't put your money in an FD in a debt fund. Don't sit on any form of cash."
Incorrect
A substantial $28 trillion in US debt requires refinancing over the next four years.
"the $28 trillion of debt needs to be refinanced in the next four years."
Pending
Holding hard assets is crucial to avoid becoming impoverished over time due to currency devaluation.
"you have to hold on to hard assets you'll not realize you'll become poor in 5 years"
Correct
The US Fed printed $4 trillion in 2020, leading to 9% inflation, which in turn caused asset prices (real estate, equities, gold) to rise.
"If you look at 2020 they printed $4 trillion inflation went to 9%. When inflation goes up everyone understands that all asset prices go up which is real estate equities gold"
Incorrect
Real estate investment is characterized by illiquidity and significant regional variations, making transactions complex and challenging.
"real estate is very illiquid also right like at that when you're in that bracket when you have a cr 2 crores also to invest right real estate is very it's also very um local like you know the Bangalore market can be very different from the Bombay real estate market right within Bombay the prices are very different you know depending on the area getting in getting out of a transaction also becomes hard"
Correct
Approximately $28 trillion of US debt needs to be refinanced within the next four years.
"the $28 trillion of debt needs to be refinanced in the next four years."
Pending
The business of real estate development is challenging due to high costs, government charges, and interest rates (12-13%), leading to low overall profit margins for builders.
"I think if you look at it as on one flat yeah it would make sense but if you look at as a whole if you look at the inventory that's left back if you look at the interest cost I think that like it's a very bad business Okay from a builder perspective specifically today because the government has really increase especially in places like Bombay government has you know increased recar rates stamp duty values property tax there are so many hidden costs for a builder and interest like you know if you as a builder you go to raise you know money you will not get money at less than 12 13% peranom"
Correct
The Karachi Stock Exchange (Pakistan Stock Exchange) has been one of the highest-performing stock indices globally.
"one of the highest performing index in the world has been the Karachi stock exchange. Pakistan stock exchange. But how? So how"
Correct
Consistent stock price increases before good earnings results suggest insider information is being used.
"before the result before good result the stock is already up 10% 20%. Correct. It cannot be a coincidence that the stock has moved before the result and especially a good result."
Pending
The Pakistan Stock Exchange (Karachi Stock Exchange) is noted as one of the best-performing global indices.
"I think one of the best performing indexes has been the Karachi stock exchange. the Pakistan stock exchange right"
Correct
AI stocks are currently trading at excessively high valuations, which are unsustainable without exceptionally high future earnings.
"if you look at it from just from a pure stock perspective, I think they're going at some crazy valuations. So essentially um to justify those valuations that we are running at today, the earnings number have to be crazy, right? And I don't think so anyone in the right mind is able to give that earnings number."
Correct
Tesla is positioned to disrupt the EV market, driverless vehicles, logistics, and robotics, potentially leading to a significant reduction in human labor across various sectors.
"Tesla is disrupting two things. one is the EV segment which we know is a clear energy transition shift government push as well and the leader Obviously there is China BYD also coming up but obviously Tesla will have its own market share and second is driverless vehicles which is Uber's market right I'm going to disrupt you know logistics right without human involvement and ah one more thing last last thing is robotics like human labor completely disrupted like people working in factories no longer needed people helping us with our household chose no longer needed. You know, like robots coming and doing everything and Tesla seems to be the leader over there."
Correct
The Turkish stock market index has seen a 10x increase in value over the last 10 years.
"I think the same with the Turkish index in the last 10 years, the index has become a 10x."
Correct
Owning gold decouples an investor from local currency depreciation, as gold is a universally accepted store of value that can be sold anywhere in the world.
"So when you own gold, you actually you know you have nothing to do with the rupee anymore. Right? When you have so you know look at a very simple example. You give me a few notes. I'll give you a gold bar. Now you don't have anything to do with the rupee. You're holding an asset which you can sell anywhere in the world. Right? which holds value. So it's a store of value for you."
Correct
First-mover advantage in technology is often overstated; being the second or third mover allows for learning from initial mistakes and developing superior products.
"I don't think so there's a first mover advantage in these businesses and in this business it makes sense to be the second and the third mo because the first guy comes he spends all the money you know he builds all the technology and then there's a smart guy who learns from this copies this and then you know has one up in the game he knows what mistakes to not make"
Correct
AI has significantly accelerated the research process in quantitative investing.
"AI as a whole has sort of helped quant investing, uh I think it's made the research process a lot faster for us."
Correct
Warren Buffett considers Apple a retail business due to its powerful brand, enabling it to sell diverse products successfully.
"he doesn't look at it as a pure tech business. He looks at it as a retail business. Tomorrow Apple can sell anything and people will buy it. It's the brand power."
Correct
Tesla is disrupting multiple industries including EVs, driverless vehicles, logistics, and robotics, potentially displacing human labor in factories and household tasks.
"Tesla is disrupting two things. one is the EV segment which we know is a clear energy transition shift government push as well and the leader uh obviously there is China BYD also coming up but obviously Tesla will have its own market share and second is driverless vehicles which is Uber's market right I'm going to disrupt you know logistics right without human involvement and ah one more thing last last thing is robotics like human labor completely disrupted like people working in factories no longer needed people helping us with our household chose no longer needed."
Correct
Buffett's significant cash holdings (35-40%) suggest he anticipates economic challenges in the US.
"I think he understands where the US is. I think he is sitting on the highest amount of gas he's ever sat on. I think he's sitting on about 35 40% in the form of cash in his portfolio."
Correct
Blackberry's decline (Research In Motion fell by 80-90%) illustrates that even dominant tech companies can rapidly disappear, a trend expected to continue in the tech sector.
"and that's what happened with the blackberry right so essentially I think research in motion was the company name and I think it fell by like 80 90% and it's nowhere to be seen right so I think on the tech side these things will constantly happen"
Correct
Warren Buffett's practice of holding large cash reserves implies he is timing the market, which contradicts his public advice to remain invested.
"When you when you sit on cash, you are unknowingly timing the market, right? That means that you're not investing. He's been doing that for a couple of years now, right?"
Correct
Buffett's immense wealth, despite potentially lower long-term percentage returns than some peers, is attributed to his very large capital base accumulated over decades.
"how did Buffett become the richest person you know say the top three today by doing like say 20 30% peranom for like 50 60 years. A lot of people have done very well like Jim Simmons has done 60% for 20 years. I he should be richer. Essentially the capital base that Buffett has is very large."
Pending
Warren Buffett invested in Apple in 2017 at around $30, making it 10% of his portfolio, and its value has since risen to approximately $250.
"he invested like in 2017. Yeah. And he I think he entered at like a $30 and it was about 10% of his portfolio and it you know I think it's at 250 today."
Incorrect
Insurance companies, like LIC, leverage customer premiums by investing them in the stock market, aiming for higher returns (20-30%) than the promised returns to policyholders (4-5%).
"he took 10,000 rupees of the public from the insurance business and redeployed that in the markets. ... So insurance that's what LIC does, right? You look at you know today you look at holdings of large businesses essentially LIC holds 2 3 4% ... they are investing that money in the stock market and making 20 30% return."
Correct
Insurance companies like LIC, by holding customer premiums which are repaid much later, generate significant 'free float' capital that can be invested in the stock market.
"And what happens with an insurance business say like an LIC is you know we as you know as the public we go and you know pay premiums that premiums you know remains in the bank and that money needs to be repaid say at the end of my life after 30 40 years. So there's a free Buffett has that that free float right? So what he essentially did is that he took all that free float and invested in the stock market"
Correct
A luxurious lifestyle in a place like South Bombay can be sustained with 1 to 1.5 crore rupees annually, equivalent to approximately 10 lakh rupees per month.
"if you have a house, if you leave your house aside. ... if you had to live very luxuriously, you could spend like anywhere between 1 to 1 and a2 cr rupees and live very luxuriously in a year like in a year. ... 10 lakhs a month I think is more than enough for you to, you know, live a luxurious lifetime without worrying about it."
Pending
An initial investment of 10 lakhs can potentially grow to 100 crores in 20 years with a consistent 25% CAGR, or 10 crores with a 26% CAGR.
"if you have 10 lakhs it is possible in the next 20 years that 10 lakhs can become 100 crores. If they generated 25% CGR It can become 10 crores in 20 years."
Pending
Warren Buffett became one of the richest individuals by achieving a 20-30% annual return for 50-60 years.
"how did Buffett become the richest person you know say the top three today by doing like say 20 30% peranom for like 50 60 years."
Pending
Warren Buffett considers missed opportunities (errors of omission), like not investing in Amazon or Walmart early on, as his biggest investment mistakes, rather than losing money on specific stock picks (errors of commission).
"errors of commission are for example, I bought a stock, I shouldn't have bought it... Error of omission is I bought I should have bought the stock. I had, you know, I had all the knowledge, but I didn't buy it because I was scared and it became a 10x. If you look at Buffett, he says my biggest mistakes are not the stocks that I lost money on. It's the stocks that I didn't buy."
Correct
Warren Buffett is currently holding a significant amount of cash in his portfolio, estimated at 30-40%.
"I think he is sitting on the highest amount of gas he's ever sat on. I think he's sitting on about 35 40% in the form of cash in his portfolio. I think 30%."
Incorrect
One should understand the context and nuances behind advice from experts like Warren Buffett before attempting to copy their actions, as their decisions are based on deep understanding and unique circumstances.
"So I think he understands this he understand all these different nuances and he can take that decision also you know I don't think you and I can just copy M So you know when you're taking advice from someone you got to understand from what context they're coming and what they're trying to say right"
Correct
The book 'The Little Book That Beats the Market' offers a specific formula for wealth building.
"that little book that beats the market... gives you that formula that how you can, you know, actually build wealth."
Correct
The speaker's personal net worth is estimated to be between 30-35 crore rupees out of a total managed fund of 100 crore rupees.
"Let's say like you know I have another out of the 100 crores about 30 35 crores is my money"
Pending
Investors should seek businesses with high Return on Capital Employed (30-50%) that can also scale effectively.
"You want to back businesses which can grow at high return on capital which can do say 30 40 50%. And they can do it at scale right?"
Pending
The speaker feels financially secure with their current net worth, especially considering their residence in South Mumbai.
"no 100% I think it's like I know I feel very financially secure I think that if you're staying in a place like Bombay you're in South Bombay"
Pending
Significant US money printing (15-20 trillion in 3 years) is projected to lead to a substantial increase in asset prices.
"If they end up printing about 1520 trillion in the next 3 years think about it what will happen to asset prices"
Correct
A luxurious lifestyle in South Mumbai, excluding housing costs, can be maintained with an annual expenditure of 1 to 1.5 crore rupees.
"I think if you have a house if you leave your house aside. Um, luckily I already have a house. But you know, if you if say for example you already have a house, if you had to live very luxuriously, you could spend like anywhere between 1 to 1 and a2 cr rupees and live very luxuriously in a year like in a year."
Pending
The real estate sector is considered overvalued, partly because a large portion of sales revenue goes to the government, limiting builder profitability.
"I think one overrated sector if you were to ask me I think is real estate... the industry you know when you take a make a real estate sale a large part of the money goes to the government the builder doesn't make a lot of money"
Pending
Beyond a certain wealth threshold, the focus shifts from the monetary amount to the 'game' of improving research and skills in investing.
"see essentially for me I think I look at it as a game right for me like life is a game and essentially investing also becomes a game and after a point you know for everyone I don't think you know whoever you are whether you're a buffet manga Ramde I think the number stops mattering right like I don't think so the number is you know I think it's a game that okay fine can I get better at this can I wake up and do better research"
Unrated
A promoter's history of achieving 20% ROCE and 15-18% annual growth in sales and earnings over four to five years is a strong indicator of their capability.
"promoter has given say a 20% return on capital employed and has grown the business say in sales and earnings has grown at say 15 18% peranom for the last four five years I think that says a lot about him"
Pending
In an expensive city like Mumbai, living luxuriously costs around 1-1.5 crore annually. Professionals earning 30-50 lakhs often spend most of it on living expenses like rent.
"So I think 1 one and a half crores in Bombay is that you can live a very luxurious lifestyle after which I think you know whatever you're spending is essentially I don't think so it's adding as much value but up to then because Bombay is an expensive place right so most people end up you know a professional making like 30 40 lakhs or 50 lakh rupees ends up spending most of it if you're living in Bombay like rent and other things"
Pending
A quantitative fund's approach focuses on a dynamic list of top-performing stocks rather than adhering to traditional sector divisions.
"as a quant fund I probably don't even know um you know which sectors in terms of division for me it's the the top 30 stocks and that keeps changing year after year right"
Correct
The first crore is the hardest to achieve; after that, compounding at 20-30% annually on a corpus of 5-6 crore rupees will generate 1-1.5 crore per year, leading to exponential growth.
"So idea is that first you try to save as much to get to that corpus right say you get to 10 crores 12 crores that number to get to so you know even Ramde gets you know says this right to get to the first cr is the hardest right somehow you get to the first cr then the compounding journey once it kicks in right you'll not even realize the number will keep getting bigger and bigger and bigger and the moment you have say like 5 cr 6 cr rupees and you're making 20 30% peranom so that's one one a half cr a year"
Pending
Holistic portfolio construction is essential for successful investing.
"So you need to look at portfolio construction as a whole."
Correct
Warren Buffett considers 'errors of omission' (failing to invest in a stock despite having knowledge, due to fear) as his biggest mistakes, citing missed opportunities with Amazon and Walmart, which represent significant financial losses.
"Errors of omission is I bought I should have bought the stock. I had, you know, I had all the knowledge, but I didn't buy it because I was scared and it became a 10x. If you look at Buffett, he says my biggest mistakes are not the stocks that I lost money on. It's the stocks that I didn't buy. Right? My biggest mistake is I didn't buy Amazon early on. My my biggest mistake is I didn't buy Walmart. It was a $10 billion mistake."
Correct
Investing in stocks with extremely high P/E ratios (100-300x earnings), where future earnings are unpredictable, leaves no margin of safety for investors.
"if I can't predict earnings, I'm not going to touch the stock because then there's no margin of safety, right? If you're entering at say like a 100 times or 200 times or even a 300 times earnings, what's the margin of safety that you have?"
Correct
Achieving a 26% CAGR over 10 years can turn 10 lakh rupees into 1 crore, and over another 10 years, it can grow to 10 crores.
"It's that simple. Just 26% CGR. So your first you know the first 10 years is your 10 lakhs becomes a cr and then the next becomes 10 crores."
Pending
The Nifty 50 is a basic quantitative model that can be significantly improved upon with more sophisticated approaches.
"The nifty50 is a quant model but a very silly quant model you can do a lot better than nifty"
Correct
A book about Jim Simmons titled 'The Man Who Solved the Market' is recommended for understanding quant investing.
"And Jim Simmons there's a book written on him called the man who solved the market."
Correct
The US faces a looming debt crisis, with approximately $30 trillion in debt requiring refinancing within the next 4-5 years.
"the debt crisis that they're going to go through... the US is very close to a debt crisis so they are sitting on 37 trillion of debt all of that needs to get maybe 30 trillion odd needs to get refinanced in the next 4 5 years"
Pending
'The Little Book That Beats the Market' provides a formula for wealth building.
"And there's a little book book that beats the market. So that book essentially, you know, gives you that formula that how you can, you know, actually build wealth."
Unrated
In volatile economic conditions with significant money printing, individuals holding assets, particularly hard assets like gold, are well-positioned to benefit as asset prices tend to rise.
"So essentially, um to explain in layman terms right recently Warren Buffett was asked this question right who's winning in an economy like this where there's so much volatility and there's printing and he said people like me you know people like me because we are capitalists we are sitting on assets right because what happens is when printing of money comes in asset prices go up"
Correct
The formula from 'The Little Book That Beats the Market' can be implemented and tested using Excel, which was the initial approach taken by the speaker in 2016 before learning to code.
"In fact, you can, you know, like take that formula down, run a few tests, you can make it on Excel. So that's how we did it back in the day like when I didn't know how to code. So it was 2016. The first thing I did, can I build this model on Excel?"
Correct
The Federal Reserve's $4 trillion money printing in 2020 led to a 9% inflation rate, which in turn caused asset prices across real estate, equities, and gold to increase.
"in 2020 they printed $4 trillion inflation went to 9%. When inflation goes up everyone understands that all asset prices go up"
Incorrect
Implementing a ranking system based on ROC and EV/EBITDA in Excel yielded approximately 25% annual returns.
"And I picked up ROC, EV bida, gave it a ranking and actually saw I was like, damn, this is giving like 25% peranom"
Pending
During periods of extensive money printing, hard assets demonstrate exceptional performance.
"when there's extreme amount of money printing, I think hard assets end up doing extremely well."
Correct
Building knowledge is key to success in investing, which leads to conviction, enabling one to invest fully.
"So I think it's a great starting point. So if you want to be successful, you have to build knowledge and with that knowledge, conviction will come. Once you get that conviction, then you can go all in"
Unrated
Central bank actions are a significant factor influencing the price of gold.
"the second thing was that gold is sort of driven by central banks."
Correct
Simple quantitative models can outperform institutional investors. Getting started early is paramount.
"Um you can beat institutions by simple models. So I think you know why don't you get your hands dirty and start and starting early is probably the most important thing."
Pending
The US dollar is projected to experience a decline in its value over the next decade.
"in the next 10 years. We're going to see a downfall."
Pending
The value of currency is expected to decrease significantly due to continuous money printing, leading people to avoid holding it.
"So no one wants to hold currency anymore. So what you're saying is this will keep continuing. Printing will keep continuing. Printing will keep continuing. Value of currency will be worthless."
Incorrect
Governments primarily use money printing and interest rate adjustments (down to zero) to manage the economy.
"either printing or interest rates. So you can keep reducing interest rates but you can only take it down to zero"
Correct
Despite the negative perception of war, countries like Pakistan (Karachi Stock Exchange) have seen high-performing indices, suggesting complex economic impacts.
"So, you know, with war I think more than Indian markets I give this example a lot if you open you know say investing.com and you try to find what is like you know one of the highest performing you know index in the world you'd be surprised uh if you take a guess right it would be defense would be my guess not India like across the world right globally I think one of the best performing indexes has been the Karachi stock exchange"
Correct
A 50/50 portfolio of Nifty 50 and gold offers significantly reduced risk compared to equities alone, with a lower maximum drawdown (18-20%) while still achieving comparable long-term returns (around 12%).
"if you look at the last 20 years of data if you plot a chart so if you look at nifty50 nifty is given about 12% peranom long-term returns maybe 20 years if you look at gold is also given 11 12% peranom if you put 50% of money in nifty and 50% in gold and you sort of merge that portfolio you look at the risk adjusted return so only nifty is 12% there are years like 2020 and 2008 where you've lost 40% 50% of your portfolio so that's the risk that you hold with equities if you look at gold it's done 11 12%. There have been bad years or you know two three bad years where you've lost about 30% of your portfolio. But when you combine these two they sort of are uncorrelated or have very low correlation to each other. The risk on the portfolio drops dramatically. You can make 12%. But you will not see more than like say 18 20% drop in the portfolio."
Pending
Wars can lead to high inflation in countries like Pakistan and Turkey due to increased government defense spending, which is financed by printing money. This inflation benefits corporations as prices of goods rise.
"Pakistan and Turkey have been in a very high inflation environment because they've been in a state of war right cuz what happens in in case of war is that the government ends up spending a lot on defense and to spend that money they need to print money because they don't have any income in the form of taxes etc. Yeah right. So you keep printing inflation goes really high when inflation goes high the price of goods go up but who benefits when the price of goods go up right corporations."
Correct
The Nifty 50 has historically provided an average annual return of approximately 12% over a 20-year period.
"nifty50 nifty is given about 12% peranom long-term returns maybe 20 years"
Pending
By applying common sense and additional filters, investors can create quantitative models that outperform the Nifty 50.
"if you put those things in and you just use common sense essentially you can do a lot better than the nifty"
Pending
Gold returns are significantly impacted by currency depreciation. In INR terms, gold has returned 11% compared to 7% in dollar terms due to a 3-4% INR depreciation. In Pakistani Rupee terms, it could be as high as 30% due to higher currency depreciation.
"So if you look at gold in dollar terms, long-term would be say 7%. If you look at INR terms, it's 11%. Because of the currency depreciation of 3 4%. Okay. If you look at in say you know like Pakistani rupia, it would probably be like 30% peranom because their currencies depreciated at a much higher rate."
Correct
A real estate company like Lodha (Loa) with a market cap of 1.2 lakh crore has a Gross Development Value (GDV) of 2 lakh crore presented, indicating a potential future development pipeline.
"So say for example like um Loa is at a 1 lakh 20,000 cr market cap and his presentation he say that we have say um a GDV or gross development value of say 2 lakh crores."
Pending
In ten years, the manageability capacity for quant fund managers is projected to reach 30,000 crore.
"10 years down the line when we speak again probably the number will be you 30,000 crores."
Pending
Successful investing involves determining what to buy, how much to allocate, and the optimal timing for purchases.
"what to buy how much to buy and when to buy it"
Pending
Builders often do not make substantial profits because a large portion of their revenue is absorbed by banks (interest costs) and the government (taxes, duties).
"the builder doesn't end up making a lot of money because most of the money is taken away by the bank and by the government"
Correct
From a builder's perspective, the business is challenging due to interest costs (around 12-13% for loans), government levies (recar rates, stamp duty, property tax), and inventory management, resulting in low overall profitability (10-11% ROC).
"I think if you look at it as on one flat yeah it would make sense but if you look at as a whole if you look at the inventory that's left back if you look at the interest cost I think that like it's a very bad business okay from a builder perspective specifically today because the government has really increase especially in places like Bombay government has you know increased recar rates stamp duty values property tax there are so many hidden costs for a builder and interest like you know if you as a builder you go to raise you know money you will not get money at less than 12 13% peranom"
Correct
Return on Capital Employed (ROCE) is identified as the most critical factor when selecting a business for investment.
"The most important factor in picking a business is return on capital employed"
Pending
Scalability is a key characteristic of a business, indicating its potential for growth from a small starting point.
"And they can do it at scale right? So maybe they're starting small today but their business can grow."
Correct
The frequency of hearing about insider trading, especially in Mumbai, raises concerns about its prevalence in India, contrasting with the strict penalties in the US. Entrepreneurial friends also invest based on 'sure shot' information.
"So it's not a one-off or a two-off thing it's having happening a lot and this is called insider trading which is very very bad in the United States if it happens you can go to jail So is insider trading very common in India because I'm hearing a lot such kind of news coming to me especially in Mumbai which is the financial capital of India where all the billionaires sit. So I think you know this question comes to my mind also a lot and I'll tell you why the question comes because when I look at data right so"
Unrated
Data shows that stocks often rise 10-20% before good results are announced, indicating that someone possesses prior information, suggesting insider trading activity.
"so essentially you know this is a question that comes to my mind and why the question comes is when I look at data right so and by the way this is how most of my entrepreneur friends invest they are not like this mutual fund that PMS they're like I have a sure shot 10 on 10 conviction because at the source is valid I'm putting and I've made money guaranteed invest this is how it is so essentially you know this is a question that comes to my mind and why the question comes is when I look at data right so before the result before good result the stock is already up 10% 20%. Correct. It cannot be a coincidence that the stock has moved before the result and especially a good result. Right. Right? That means that someone has some amount of information."
Pending
Brand value is a consistent and enduring asset across various industries.
"One thing that remains constant across most industries is brand value."
Pending
Upholding principles is crucial in life and investing. An example is given where a father refused a higher offer for a house to honor a prior commitment, emphasizing the importance of integrity over immediate financial gain.
"essentially you you know I was recently you know my dad was selling an old house of his because he was in need of funds and um someone was you know he He committed and he shook hands with someone and you know that guy said okay we'll do the deal and we said okay fine after 5 days we'll take the token and you know the next day someone else came in and he said I'll offer you 20 lakh rupees more and my father just said no right and so I asked him I said you know he's offering you 20 lakhs more you're not taking a token and he's saying see the thing is that you have to live by certain principles and this is where you start from"
Pending
The defense sector has experienced significant growth over the past decade.
"defense did extremely well. Right. Last 10 years defense has done extremely well."
Correct
Consistent compounding at 20-25% over 20-30 years is the path to significant wealth. Insider trading is not a sustainable long-term strategy.
"I think ultimately you know you have to understand if you compound your money at 20 25% you've done the math so many times right and it's going to be a large number you just keep going to have conviction on you know on that principle right this one stock is not going to change me or my lifetime right it's not going to change my net worth I think if I can do this for 20 30 years and I think that insider trading is not something that you can do for 20 years."
Pending
A promoter with a consistent history of 20% ROCE and 15-18% annual growth in sales and earnings over four to five years demonstrates strong business acumen.
"if a promoter has given say a 20% return on capital employed and has grown the business say in sales and earnings has grown at say 15 18% peranom for the last four five years I think that says a lot about him"
Unrated
Market operators are individuals with access to promoters and CEOs, enabling them to obtain insider information.
"these guys are called market operators the term like they are the ones who has have the eyes and ears with every you know promoter and CEO. So they sort of get this information knowledge coming to them."
Unrated
Insider trading is unethical and constitutes theft because one person's profit comes at another's direct financial loss.
"It's unethical right? So essentially if I'm making money through insider trading someone else is losing money right? Yeah it's theft Because I bought it and then I you know I he sold it because you were buying it and sort of you made that money correct."
Pending
A good track record of two to four years is considered sufficient, even for companies that might be older.
"that the company needs to be at least these many years old in the system. Yeah. So essentially even 2 3 years four years of good track record is enough."
Correct
Promoters aged 40-60 have a higher probability of generating 5-10x returns in their businesses.
"between the age of 40 to 60 um you know making that say five or tenx the probability of making that is a lot higher."
Unrated
Current AI stocks are trading at extremely high valuations, requiring unrealistic earnings projections to justify their prices.
"But if you look at it from just from a pure stock perspective, I think they're going at some crazy valuations. So essentially um to justify those valuations that we are running at today, the earnings number have to be crazy, right? And I don't think so anyone in the right mind is able to give that earnings number."
Correct
A primary goal for quantitative managers is to minimize the influence of luck in investment decisions.
"the role of luck is very large as a quant manager what I want to do is reduce that role of luck as much as I can"
Correct
Investing in stocks with unpredicted earnings and extremely high P/E ratios (100-300x) carries significant risk, potentially leading to 70-80% wealth loss, as seen during the tech boom.
"So as an investor, right? If I were to follow even a subjective investor like a Buffett's principles, um I would say that if I can't predict earnings, I'm not going to touch the stock because then there's no margin of safety, right? If you're entering at say like a 100 times or 200 times or even a 300 times earnings, what's the margin of safety that you have, right? You don't know because if you're wrong, if the industry changes, you could lose probably 70 80% of your wealth also. And we've seen that in the past to the tech boom."
Correct
While AI will undoubtedly transform businesses, AI stocks are not always great investments due to high valuations; profitable investments can also be found in 'boring' industries trading at cheap prices.
"The AI boom is going to be there. But and and businesses are going to change because of this. We're seeing that today. But does that become a great investment? No, not always. you know it might be a very you can find a very boring industry and you can make a lot of money because it's available at a cheap price."
Correct
Countries experiencing war, such as Pakistan and Turkey, often face high inflation.
"Pakistan and Turkey have been in a very high inflation environment because they've been in a state of war"
Incorrect
It's challenging to identify competitors that could currently surpass Tesla's advanced position in the market.
"I'm just trying to understand how could someone else come and beat Tesla right now because they're so far up in the game. I can't even think of a second place competitor for this."
Correct
Gold serves as a global asset, detached from the value of any single currency like the rupee, and can be traded internationally.
"When you have so you know look at a very simple example. You give me a few notes. I'll give you a gold bar. Now you don't have anything to do with the rupee. You're holding an asset which you can sell anywhere in the world."
Correct
Warren Buffett views Apple not as a tech company, but as a retail business driven by its strong brand power, capable of selling any product.
"But he doesn't look at uh you know Apple as a tech he doesn't look at it as a pure tech business. He looks at it as a retail business. Tomorrow Apple can sell anything and people will buy it. It's the brand power."
Correct
Builders in the real estate sector often see reduced profits as significant portions of revenue are allocated to banks and the government.
"the builder doesn't end up making a lot of money because most of the money is taken away by the bank and by the government"
Correct
Insurance companies, including Buffett's strategy, operate on probabilities, calculating risks associated with events like deaths, calamities, earthquakes, and hurricanes to manage their financial exposure.
"Right? So they run on probabilities again essentially how many people die this year? What if there's a calamity then what will happen? And Buffett has also done this math and he's actually said it openly like okay if these calamities plus this earthquake plus this hurricane all of these things happen in one year maybe we'll not be good for the money."
Correct
Consistent pre-earnings stock price increases strongly suggest the presence of insider trading.
"before the result before good result the stock is already up 10% 20%. Correct. It cannot be a coincidence that the stock has moved before the result and especially a good result."
Pending
Warren Buffett's wealth accumulation involved significant leverage, utilizing funds from the public through his insurance business to invest in the markets.
"So how Buffett became actually rich is through leverage. Right. He had 100 rupees but he took 10,000 rupees of the public from the insurance business and redeployed that in the markets."
Correct
Current valuations of AI stocks are considered unsustainable, as they require unrealistically high future earnings to be justified.
"to justify those valuations that we are running at today, the earnings number have to be crazy, right? And I don't think so anyone in the right mind is able to give that earnings number."
Correct
Insurance companies invest premiums at market rates (e.g., 12%) while offering policyholders lower returns (e.g., 4-5%), generating an alpha of 6-7%. This leverage, alongside stock-picking skills, contributed to Buffett's immense wealth.
"So say they're making even 12% right. So the alpha 6 7%. So this is the game. This is the game and that's how actually Buffett. So there are two aspects to it. One is stock picking skills. But to become that large and to become the richest guy you know on this planet essentially there was this was a form of leverage that he took."
Pending
Tesla is poised to disrupt the EV, driverless vehicle, logistics, and robotics industries.
"Tesla is disrupting two things. one is the EV segment... and second is driverless vehicles... and ah one more thing last last thing is robotics"
Correct
Holding cash is implicitly an act of market timing, signifying a decision not to invest.
"So when you sit on cash, you are unknowingly timing the market, right? That means that you're not investing."
Correct
Research In Motion (Blackberry) experienced a severe stock price decline of 80-90% and is no longer a significant market player.
"research in motion was the company name and I think it fell by like 80 90% and it's nowhere to be seen"
Correct
Warren Buffett does time the market, despite advising others not to. His approach requires extreme dedication (12+ hours daily for 30-40 years) and deep expertise, making it unreplicable for most.
"But he does time the market. But that's because he's an expert right he's saying see I do this for for 13 hours a day and I tell people like you want to become like Buffett you know wake up at like 7:00 reach office by 9:00 spend 12 hours a day don't do any buying don't do anything right just read read read and do that for 30 40 years of life you'll become like that right I don't think so anyone can do that"
Pending
A luxurious lifestyle in South Mumbai, excluding housing costs (if already owned), can be sustained with an annual budget of 1 to 1.5 crore rupees.
"I think that if you're staying in a place like Bombay you're in South Bombay right yeah so I stay in South Bombay essentially if you're staying in a place like South Bombay right um I think if you have a house if you leave your house aside. Um, luckily I already have a house. But you know, if you if say for example you already have a house, if you had to live very luxuriously, you could spend like anywhere between 1 to 1 and a2 cr rupees and live very luxuriously in a year like in a year."
Incorrect
Warren Buffett perceives Apple not as a tech company, but as a retail business leveraging its strong brand power to sell a wide range of products.
"He looks at it as a retail business. Tomorrow Apple can sell anything and people will buy it. It's the brand power."
Correct
Warren Buffett's portfolio currently holds an exceptionally high percentage of cash, estimated between 35% and 40%.
"I think he is sitting on the highest amount of gas he's ever sat on. I think he's sitting on about 35 40% in the form of cash in his portfolio."
Correct
For the speaker, investing is viewed as a game where the focus shifts from the monetary amount to continuous improvement in research and skill acquisition after a certain level of wealth is achieved.
"see essentially for me I think I look at it as a game right for me like life is a game and essentially investing also becomes a game and after a point you know for everyone I don't think you know whoever you are whether you're a buffet manga Ramde I think the number stops mattering right like I don't think so the number is you know I think it's a game that okay fine can I get better at this can I wake up and do better research"
Unrated
The speaker prioritizes increasing income over cutting expenses, viewing investing as a game of continuous improvement in research and skill.
"So essentially for me I think I look at it as a game right for me like life is a game and essentially investing also becomes a game and after a point you know for everyone I don't think you know whoever you are whether you're a buffet manga Ramde I think the number stops mattering right like I don't think so the number is you know I think it's a game that okay fine can I get better at this can I wake up and do better research"
Unrated
Despite advising the public against market timing, Warren Buffett himself actively times the market by holding significant cash reserves.
"He's been doing that for a couple of years now, right? He's been doing that and he constantly does that. What he says for the public at large, when he's when he's talking, he's talking to the public at large, listen, don't try to time the market. Remain invested. But he does time the market."
Pending
Warren Buffett's wealth accumulation was significantly boosted by leveraging the 'free float' from his insurance business, investing customer premiums in the stock market.
"Essentially the capital base that Buffett has is very large. So he has he bought this insurance business back you know like 50 60 years ago. And what happens with an insurance business say like an LIC is you know we as you know as as the public we go and you know pay premiums that premiums you know remains in the bank and that money needs to be repaid say at the end of my life after 30 40 years. So there's a free Buffett has that that free float right? So what he essentially did is that he took all that free float and invested in the stock market"
Correct
Warren Buffett considers not investing in Amazon and Walmart early on as his biggest financial mistakes, equating them to a $10 billion loss.
"My biggest mistake is I didn't buy Amazon early on. My my biggest mistake is I didn't buy Walmart. It was a $10 billion mistake."
Pending
A 10 lakh investment can grow to 10 crores in 20 years with a consistent 25% CAGR, with the first 10 years yielding 1 crore and the subsequent 10 years yielding 10 crores.
"So realistically speaking today if you have 10 lakhs it is possible in the next 20 years that 10 lakhs can become 100 crores. If they generated 25% CGR it can become 10 crores in 20 years. Oh 100x right? Sorry 100. If I have 10 lakhs 10 lakhs can become 10 crores in 20 years. Assume you can grow it by 25% CGR every year. It's that simple. Just 26% CGR. So your first you know the first 10 years is your 10 lakhs becomes a cr and then the next becomes 10 crores."
Pending
A luxurious lifestyle, including travel and possessions, can be maintained with an annual expenditure of 1 to 1.5 crore rupees.
"if you had to live very luxuriously, you could spend like anywhere between 1 to 1 and a2 cr rupees and live very luxuriously in a year like in a year. So say you have a car, you have a driver, you take vacations, you go to Switzerland, you know, you travel the world, you do whatever you want. I think 1 one and a half cr is more than enough."
Pending
An initial investment of 10 lakhs can potentially grow to 10 crores in 20 years with a 25% CAGR, or 100 crores with an unspecified higher CAGR.
"if you have 10 lakhs it is possible in the next 20 years that 10 lakhs can become 100 crores. If they generated 25% CGR It can become 10 crores in 20 years."
Pending
'The Little Book That Beats the Market' offers a formula for wealth building that can be tested and implemented using Excel.
"So that book essentially, you know, gives you that formula that how you can, you know, actually build wealth. Oh, there's a formula only. There's a formula. In fact, you can, you know, like take that formula down, run a few tests, you can make it on Excel."
Pending
For inspiration in quantitative investing, readers are recommended to explore Ed Thorp's 'Beat the Dealer' and the book about Jim Simmons titled 'The Man Who Solved the Market'.
"the first thing is that to get into quant investing you need to be inspired and for inspiration you would look at say like maybe three books for inspiration you want to look at Ed Thorp and you want to look at Jim Simmons. So Ed th has this book called beat the dealer. He also has a book around the markets also. And Jim Simmons there's a book written on him called the man who solved the market."
Correct
A quantitative model incorporating ROC and EV/EBITDA rankings yielded approximately 25% annual returns.
"And I picked up ROC, EV bida, gave it a ranking and actually saw I was like, damn, this is giving like 25% peranom"
Pending
The book 'The Little Book That Beats the Market' provides a formula for building wealth.
"that little book that beats the market. Right. Um, so that book essentially, you know, gives you that formula that how you can, you know, actually build wealth."
Correct
Beginning the investment journey at an early stage is deemed the most critical factor for long-term success.
"starting early is probably the most important thing."
Correct
Building knowledge in investing leads to conviction, which is essential for making full commitments to investments.
"So I think it's a great starting point. So if you want to be successful, you have to build knowledge and with that knowledge, conviction will come. Once you get that conviction, then you can go all in"
Pending
Simple quantitative models allow individuals to outperform institutions. Starting early in investing is paramount.
"Um you can beat institutions by simple models. So I think you know why don't you get your hands dirty and start and starting early is probably the most important thing."
Pending
A significant market reset is imminent.
"We are in that stage where there's going to be a big reset happening."
Incorrect
The US's $4 trillion money printing in 2020 led to 9% inflation, subsequently driving up asset prices across real estate, equities, and gold.
"in 2020 they printed $4 trillion inflation went to 9%. When inflation goes up everyone understands that all asset prices go up"
Incorrect
Continuous money printing is expected to render currency worthless, leading people to avoid holding it.
"So no one wants to hold currency anymore. So what you're saying is this will keep continuing. Printing will keep continuing. Printing will keep continuing. Value of currency will be worthless."
Incorrect
Hard assets tend to perform exceptionally well during periods of extensive money printing.
"when there's extreme amount of money printing, I think hard assets end up doing extremely well."
Correct
Despite conflicts, the Karachi Stock Exchange has been one of the world's best-performing indices, suggesting a complex relationship between war and market performance.
"So, you know, with war I think more than Indian markets I give this example a lot if you open you know say investing.com and you try to find what is like you know one of the highest performing you know index in the world you'd be surprised uh if you take a guess right it would be defense would be my guess not India like across the world right globally I think one of the best performing indexes has been the Karachi stock exchange"
Correct
Central bank activities are a primary driver of gold prices.
"gold is sort of driven by central banks."
Correct
Wars can lead to high inflation in countries like Pakistan and Turkey due to increased government defense spending financed by money printing, which ultimately benefits corporations as prices rise.
"Pakistan and Turkey have been in a very high inflation environment because they've been in a state of war right cuz what happens in in case of war is that the government ends up spending a lot on defense and to spend that money they need to print money because they don't have any income in the form of taxes etc. Yeah right. So you keep printing inflation goes really high when inflation goes high the price of goods go up but who benefits when the price of goods go up right corporations."
Correct
The US dollar is expected to decline in value over the next decade.
"in the next 10 years. We're going to see a downfall."
Correct
Money printing and interest rates are the primary tools governments use to manage their economies.
"either printing or interest rates."
Correct
Gold returns are amplified by currency depreciation; for example, INR terms show higher returns than dollar terms due to INR's depreciation against the dollar.
"So if you look at gold in dollar terms, long-term would be say 7%. If you look at INR terms, it's 11%. Because of the currency depreciation of 3 4%. Okay. If you look at in say you know like Pakistani rupia, it would probably be like 30% peranom because their currencies depreciated at a much higher rate."
Correct
Real estate companies like Lodha value themselves based on their Gross Development Value (GDV), which in this case is 2 lakh crore against a market cap of 1.2 lakh crore.
"So say for example like um Loa is at a 1 lakh 20,000 cr market cap and his presentation he say that we have say um a GDV or gross development value of say 2 lakh crores."
Incorrect
A 50% gold and 50% Nifty 50 portfolio significantly reduces overall portfolio risk due to the low correlation between the two assets.
"if you put 50% of money in nifty and 50% in gold and you sort of merge that portfolio you look at the risk adjusted return... The risk on the portfolio drops dramatically."
Correct
Builders' profits are significantly reduced by bank interest costs and government levies.
"the builder doesn't end up making a lot of money because most of the money is taken away by the bank and by the government"
Correct
The Nifty 50 is characterized as a rudimentary quantitative model based solely on market capitalization.
"the nifty50 essentially is a quant model right what is the nifty50 is the top 50 businesses based on market cap correct free float market cap right"
Correct
The real estate builder business is challenging due to high interest rates (12-13%), government taxes, and hidden costs, resulting in low overall returns on capital employed (10-11%).
"I think if you look at it as on one flat yeah it would make sense but if you look at as a whole if you look at the inventory that's left back if you look at the interest cost I think that like it's a very bad business okay from a builder perspective specifically today because the government has really increase especially in places like Bombay government has you know increased recar rates stamp duty values property tax there are so many hidden costs for a builder and interest like you know if you as a builder you go to raise you know money you will not get money at less than 12 13% peranom"
Correct
More sophisticated quantitative models can achieve superior performance compared to the Nifty 50.
"you can do a lot better than the nifty right the nifty is a quant model but a very silly quant model you can do a lot better than nifty"
Pending
The capacity for managing funds with quantitative strategies is projected to grow substantially in the next decade, from an estimated 300 crore 10 years ago to 30,000 crore.
"in the next 10 years we'll get there our market will be a lot bigger and you know if we were having this conversation 10 years ago I would say maybe you know I don't think I can manage more than 300 crores 10 years down the line when we speak again probably the number will be you 30,000 crores."
Pending
Stock price movements preceding good results suggest insider information is at play, although SEBI may investigate, only a small percentage of offenders are caught.
"So I think definitely there is you know this is happening because the price is showing that not because I know of someone or you know maybe even you know of someone. There are a lot of random people who say they have information and they probably heard it from the panwala. But I think if the price is moving and you know and it has happened before the result that means that there is something and I think sebi does look into these kind of matters and you know maybe one out of 50 people get caught right but"
Pending
Effective investing hinges on three core decisions: what to purchase, the quantity, and the timing of the purchase.
"what to buy how much to buy and when to buy it"
Correct
Adhering to principles is crucial, as demonstrated by a father who refused a higher offer to honor a prior commitment, highlighting integrity over immediate financial gain.
"essentially you you know I was recently you know my dad was selling an old house of his because he was in need of funds and um someone was you know he He committed and he shook hands with someone and you know that guy said okay we'll do the deal and we said okay fine after 5 days we'll take the token and you know the next day someone else came in and he said I'll offer you 20 lakh rupees more and my father just said no right and so I asked him I said you know he's offering you 20 lakhs more you're not taking a token and he's saying see the thing is that you have to live by certain principles and this is where you start from"
Pending
Return on Capital Employed (ROCE) is identified as the paramount factor when evaluating businesses for investment.
"The most important factor in picking a business is return on capital employed"
Pending
Achieving significant wealth requires compounding at 20-25% over 20-30 years, built on conviction in principles, not short-term gains from insider trading.
"I think ultimately you know you have to understand if you compound your money at 20 25% you've done the math so many times right and it's going to be a large number you just keep going to have conviction on you know on that principle right this one stock is not going to change me or my lifetime right it's not going to change my net worth I think if I can do this for 20 30 years and I think that insider trading is not something that you can do for 20 years."
Pending
Ideal businesses possess high ROCE (30-50%) and demonstrate strong scalability, indicating potential for significant growth.
"You want to back businesses which can grow at high return on capital which can do say 30 40 50%. And they can do it at scale right?"
Unrated
Market operators possess insider information by maintaining connections with company promoters and CEOs.
"these guys are called market operators the term like they are the ones who has have the eyes and ears with every you know promoter and CEO. So they sort of get this information knowledge coming to them."
Pending
Brand value is a stable and enduring asset irrespective of industry.
"One thing that remains constant across most industries is brand value."
Incorrect
The defense sector has exhibited strong performance over the last decade.
"Last 10 years defense has done extremely well."
Correct
Insider trading is theft because it profits one party at the direct expense of another.
"It's unethical right? So essentially if I'm making money through insider trading someone else is losing money right? Yeah it's theft Because I bought it and then I you know I he sold it because you were buying it and sort of you made that money correct."
Pending
A promoter's consistent track record of 20% ROCE and 15-18% annual growth in sales and earnings over four to five years is a strong positive indicator.
"if a promoter has given say a 20% return on capital employed and has grown the business say in sales and earnings has grown at say 15 18% peranom for the last four five years I think that says a lot about him"
Pending
AI stocks are currently trading at extremely high valuations, requiring unrealistic earnings projections for justification.
"But if you look at it from just from a pure stock perspective, I think they're going at some crazy valuations. So essentially um to justify those valuations that we are running at today, the earnings number have to be crazy, right? And I don't think so anyone in the right mind is able to give that earnings number."
Correct
A solid track record of two to four years is considered sufficient for evaluating a company.
"even 2 3 years four years of good track record is enough."
Correct
Investing in AI stocks with unpredicted earnings and high P/E ratios lacks a margin of safety and carries a significant risk of losing 70-80% of wealth, similar to the tech boom.
"So as an investor, right? If I were to follow even a subjective investor like a Buffett's principles, um I would say that if I can't predict earnings, I'm not going to touch the stock because then there's no margin of safety, right? If you're entering at say like a 100 times or 200 times or even a 300 times earnings, what's the margin of safety that you have, right? You don't know because if you're wrong, if the industry changes, you could lose probably 70 80% of your wealth also. And we've seen that in the past to the tech boom."
Incorrect
The probability of achieving a 5-10x return on an investment is significantly higher when the promoter is between 40 and 60 years old.
"between the age of 40 to 60 um you know making that say five or tenx the probability of making that is a lot higher."
Unrated
While AI will disrupt businesses, AI stocks are not inherently great investments. Profitable opportunities may lie in undervalued, less glamorous industries.
"The AI boom is going to be there. But and and businesses are going to change because of this. We're seeing that today. But does that become a great investment? No, not always. you know it might be a very you can find a very boring industry and you can make a lot of money because it's available at a cheap price."
Correct
A core objective of quantitative investing is to minimize the impact of luck on investment outcomes.
"the role of luck is very large as a quant manager what I want to do is reduce that role of luck as much as I can"
Correct
Tesla's significant lead in its core areas makes it difficult to identify any immediate competitors that could surpass its market position.
"I'm just trying to understand how could someone else come and beat Tesla right now because they're so far up in the game. I can't even think of a second place competitor for this."
Correct
War leads to increased government defense spending and money printing, causing high inflation and subsequently benefiting corporations as prices rise.
"what happens in in case of war is that the government ends up spending a lot on defense... they need to print money... So you keep printing inflation goes really high when inflation goes high the price of goods go up but who benefits when the price of goods go up right corporations."
Correct
Warren Buffett views Apple as a retail business, leveraging its powerful brand to sell any product, rather than solely a technology company.
"But he doesn't look at uh you know Apple as a tech he doesn't look at it as a pure tech business. He looks at it as a retail business. Tomorrow Apple can sell anything and people will buy it. It's the brand power."
Correct
Gold functions as a global store of value, independent of local currency fluctuations like the rupee.
"Now you don't have anything to do with the rupee. You're holding an asset which you can sell anywhere in the world. Right? which holds value. So it's a store of value for you."
Correct
Insurance companies, including those associated with Buffett, manage risk by calculating probabilities of various catastrophic events, acknowledging potential shortfalls if multiple extreme events occur simultaneously.
"Right? So they run on probabilities again essentially how many people die this year? What if there's a calamity then what will happen? And Buffett has also done this math and he's actually said it openly like okay if these calamities plus this earthquake plus this hurricane all of these things happen in one year maybe we'll not be good for the money."
Pending
Builders' profitability is significantly impacted as substantial portions of their revenue are absorbed by banks and the government.
"builder doesn't end up making a lot of money because most of the money is taken away by the bank and by the government"
Correct
Leverage, specifically utilizing public funds from the insurance business, was a key factor in Warren Buffett's wealth accumulation.
"So how Buffett became actually rich is through leverage. Right. He had 100 rupees but he took 10,000 rupees of the public from the insurance business and redeployed that in the markets."
Correct
Consistent stock price increases preceding positive earnings reports strongly suggest the presence of insider trading.
"before the result before good result the stock is already up 10% 20%. Correct. It cannot be a coincidence that the stock has moved before the result and especially a good result."
Pending
The difference between market returns (e.g., 12%) and policyholder returns (e.g., 4-5%) creates an alpha of 6-7% for insurance companies, a form of leverage that contributed significantly to Buffett's wealth.
"So say they're making even 12% right. So the alpha 6 7%. So this is the game. This is the game and that's how actually Buffett. So there are two aspects to it. One is stock picking skills. But to become that large and to become the richest guy you know on this planet essentially there was this was a form of leverage that he took."
Pending
AI stocks are currently valued at extremely high levels, requiring unrealistically high future earnings to be justified.
"if you look at it from just from a pure stock perspective, I think they're going at some crazy valuations. So essentially um to justify those valuations that we are running at today, the earnings number have to be crazy, right?"
Correct
Holding cash implies an indirect attempt at market timing, signifying a decision to abstain from investing.
"So when you sit on cash, you are unknowingly timing the market, right? That means that you're not investing."
Correct
Tesla is positioned to disrupt the electric vehicle, driverless vehicle, logistics, and robotics sectors.
"Tesla is disrupting two things. one is the EV segment... and second is driverless vehicles... and ah one more thing last last thing is robotics"
Correct
Buffett's market timing ability stems from his extraordinary dedication (12+ hours daily for decades), a level of commitment unlikely for most individuals aspiring to emulate his success.
"But he does time the market. But that's because he's an expert right he's saying see I do this for for 13 hours a day and I tell people like you want to become like Buffett you know wake up at like 7:00 reach office by 9:00 spend 12 hours a day don't do any buying don't do anything right just read read read and do that for 30 40 years of life you'll become like that right I don't think so anyone can do that"
Correct
Research In Motion (Blackberry) experienced a significant market decline of 80-90% and is no longer a prominent player.
"research in motion was the company name and I think it fell by like 80 90% and it's nowhere to be seen"
Correct
A luxurious lifestyle in South Mumbai, assuming housing is already owned, can be maintained with an annual budget of 1 to 1.5 crore rupees.
"I think if you have a house if you leave your house aside. Um, luckily I already have a house. But you know, if you if say for example you already have a house, if you had to live very luxuriously, you could spend like anywhere between 1 to 1 and a2 cr rupees and live very luxuriously in a year like in a year."
Pending
Warren Buffett considers Apple a retail business due to its powerful brand, enabling successful sales of diverse products.
"He looks at it as a retail business. Tomorrow Apple can sell anything and people will buy it. It's the brand power."
Correct
For the speaker, investing becomes a game focused on continuous improvement in research and skill, with the monetary amount becoming secondary after a certain wealth level.
"see essentially for me I think I look at it as a game right for me like life is a game and essentially investing also becomes a game and after a point you know for everyone I don't think you know whoever you are whether you're a buffet manga Ramde I think the number stops mattering right like I don't think so the number is you know I think it's a game that okay fine can I get better at this can I wake up and do better research"
Unrated
Warren Buffett is holding an unusually high percentage of cash (35-40%) in his portfolio.
"I think he is sitting on the highest amount of gas he's ever sat on. I think he's sitting on about 35 40% in the form of cash in his portfolio."
Correct
The speaker prioritizes increasing income over cutting expenses, viewing investing as a game focused on enhancing research skills rather than just accumulating wealth.
"So essentially for me I think I look at it as a game right for me like life is a game and essentially investing also becomes a game and after a point you know for everyone I don't think you know whoever you are whether you're a buffet manga Ramde I think the number stops mattering right like I don't think so the number is you know I think it's a game that okay fine can I get better at this can I wake up and do better research"
Pending
Warren Buffett engages in market timing by holding significant cash, contrary to his public advice for others to remain invested.
"He's been doing that for a couple of years now, right? He's been doing that and he constantly does that. What he says for the public at large, when he's when he's talking, he's talking to the public at large, listen, don't try to time the market. Remain invested. But he does time the market."
Pending
Warren Buffett identifies his failure to invest early in Amazon and Walmart as his most significant financial regrets, representing a $10 billion loss.
"My biggest mistake is I didn't buy Amazon early on. My my biggest mistake is I didn't buy Walmart. It was a $10 billion mistake."
Correct
Buffett's wealth was significantly enhanced by investing insurance premiums (customer float) in the stock market, generating returns far exceeding policyholder obligations.
"he took 10,000 rupees of the public from the insurance business and redeployed that in the markets. ... So insurance that's what LIC does, right? ... they are investing that money in the stock market and making 20 30% return."
Correct
A 10 lakh investment can grow to 10 crores in 20 years at a 25% CAGR, with the first 10 years yielding 1 crore and the subsequent decade yielding 10 crores.
"So realistically speaking today if you have 10 lakhs it is possible in the next 20 years that 10 lakhs can become 100 crores. If they generated 25% CGR it can become 10 crores in 20 years. Oh 100x right? Sorry 100. If I have 10 lakhs 10 lakhs can become 10 crores in 20 years. Assume you can grow it by 25% CGR every year. It's that simple. Just 26% CGR. So your first you know the first 10 years is your 10 lakhs becomes a cr and then the next becomes 10 crores."
Pending
A luxurious lifestyle can be sustained annually with 1 to 1.5 crore rupees, or approximately 10 lakh rupees per month.
"if you had to live very luxuriously, you could spend like anywhere between 1 to 1 and a2 cr rupees and live very luxuriously in a year like in a year. ... 10 lakhs a month I think is more than enough."
Pending
'The Little Book That Beats the Market' provides a formula for wealth building that can be implemented and tested using Excel.
"So that book essentially, you know, gives you that formula that how you can, you know, actually build wealth. Oh, there's a formula only. There's a formula. In fact, you can, you know, like take that formula down, run a few tests, you can make it on Excel."
Pending
An initial investment of 10 lakhs can potentially grow to 10 crores in 20 years at a 25% CAGR, or 100 crores at a higher unspecified CAGR.
"if you have 10 lakhs it is possible in the next 20 years that 10 lakhs can become 100 crores. If they generated 25% CGR It can become 10 crores in 20 years."
Pending
Applying a ranking system based on ROC and EV/EBITDA in a quantitative model resulted in approximately 25% annual returns.
"And I picked up ROC, EV bida, gave it a ranking and actually saw I was like, damn, this is giving like 25% peranom"
Pending
For inspiration in quantitative investing, 'Beat the Dealer' by Ed Thorp and 'The Man Who Solved the Market' about Jim Simmons are recommended.
"Ed Thorp has this book called beat the dealer. He also has a book around the markets also. And Jim Simmons there's a book written on him called the man who solved the market."
Pending
Building knowledge is crucial for investment success, leading to conviction and the ability to commit fully to investments.
"So I think it's a great starting point. So if you want to be successful, you have to build knowledge and with that knowledge, conviction will come. Once you get that conviction, then you can go all in"
Unrated
The book 'The Little Book That Beats the Market' offers a specific formula for wealth creation.
"that little book that beats the market. ... that book essentially, you know, gives you that formula that how you can, you know, actually build wealth."
Pending
Simple quantitative models can outperform institutional investors. Starting early is the most critical factor in investing.
"Um you can beat institutions by simple models. So I think you know why don't you get your hands dirty and start and starting early is probably the most important thing."
Unrated
Starting the investment process early is considered the most critical factor for success.
"starting early is probably the most important thing."
Correct
Continuous money printing is expected to devalue currency to the point of worthlessness, leading people to avoid holding it.
"So no one wants to hold currency anymore. So what you're saying is this will keep continuing. Printing will keep continuing. Printing will keep continuing. Value of currency will be worthless."
Incorrect
Despite the global perception of war's negative impact, the Karachi Stock Exchange has been one of the world's best-performing indices, suggesting a complex economic relationship.
"So, you know, with war I think more than Indian markets I give this example a lot if you open you know say investing.com and you try to find what is like you know one of the highest performing you know index in the world you'd be surprised uh if you take a guess right it would be defense would be my guess not India like across the world right globally I think one of the best performing indexes has been the Karachi stock exchange"
Incorrect
Wars can trigger high inflation in nations like Pakistan and Turkey due to increased defense spending financed by money printing, benefiting corporations as prices of goods escalate.
"Pakistan and Turkey have been in a very high inflation environment because they've been in a state of war right cuz what happens in in case of war is that the government ends up spending a lot on defense and to spend that money they need to print money because they don't have any income in the form of taxes etc. Yeah right. So you keep printing inflation goes really high when inflation goes high the price of goods go up but who benefits when the price of goods go up right corporations."
Correct
Gold returns are significantly influenced by currency depreciation; INR terms show higher returns than dollar terms due to INR's depreciation. Similarly, Pakistani Rupee terms would yield much higher returns due to the rupee's significant depreciation.
"So if you look at gold in dollar terms, long-term would be say 7%. If you look at INR terms, it's 11%. Because of the currency depreciation of 3 4%. Okay. If you look at in say you know like Pakistani rupia, it would probably be like 30% peranom because their currencies depreciated at a much higher rate."
Correct
Lodha, with a market cap of 1.2 lakh crore, presents a Gross Development Value (GDV) of 2 lakh crore, indicating future development potential.
"So say for example like um Loa is at a 1 lakh 20,000 cr market cap and his presentation he say that we have say um a GDV or gross development value of say 2 lakh crores."
Pending
Builders' profits are constrained by significant deductions for bank interest and government taxes/duties.
"the builder doesn't end up making a lot of money because most of the money is taken away by the bank and by the government"
Correct
The real estate builder business faces low returns (10-11% ROC) due to high borrowing costs (12-13%), government levies, and inventory costs, making it a difficult business model.
"I think if you look at it as on one flat yeah it would make sense but if you look at as a whole if you look at the inventory that's left back if you look at the interest cost I think that like it's a very bad business okay from a builder perspective specifically today because the government has really increase especially in places like Bombay government has you know increased recar rates stamp duty values property tax there are so many hidden costs for a builder and interest like you know if you as a builder you go to raise you know money you will not get money at less than 12 13% peranom"
Correct
Stock price movements preceding good results suggest insider trading is occurring in India, though regulatory bodies like SEBI may investigate, only a fraction of offenders are apprehended.
"So I think definitely there is you know this is happening because the price is showing that not because I know of someone or you know maybe even you know of someone. There are a lot of random people who say they have information and they probably heard it from the panwala. But I think if the price is moving and you know and it has happened before the result that means that there is something and I think sebi does look into these kind of matters and you know maybe one out of 50 people get caught right but"
Correct
Adhering to principles is paramount, as demonstrated by a father who refused a higher offer to honor a prior commitment, highlighting the importance of integrity over immediate financial gain.
"essentially you you know I was recently you know my dad was selling an old house of his because he was in need of funds and um someone was you know he He committed and he shook hands with someone and you know that guy said okay we'll do the deal and we said okay fine after 5 days we'll take the token and you know the next day someone else came in and he said I'll offer you 20 lakh rupees more and my father just said no right and so I asked him I said you know he's offering you 20 lakhs more you're not taking a token and he's saying see the thing is that you have to live by certain principles and this is where you start from"
Pending
Sustainable wealth creation involves compounding at 20-25% over 20-30 years, based on conviction in principles, not short-term gains from illegal activities like insider trading.
"I think ultimately you know you have to understand if you compound your money at 20 25% you've done the math so many times right and it's going to be a large number you just keep going to have conviction on you know on that principle right this one stock is not going to change me or my lifetime right it's not going to change my net worth I think if I can do this for 20 30 years and I think that insider trading is not something that you can do for 20 years."
Pending
Market operators are individuals who obtain insider information through their connections with company promoters and CEOs.
"these guys are called market operators the term like they are the ones who has have the eyes and ears with every you know promoter and CEO. So they sort of get this information knowledge coming to them."
Pending
Insider trading is unethical and constitutes theft, as one party's profit directly results in another's loss.
"It's unethical right? So essentially if I'm making money through insider trading someone else is losing money right? Yeah it's theft Because I bought it and then I you know I he sold it because you were buying it and sort of you made that money correct."
Correct
AI stocks are currently trading at extremely high valuations, requiring unrealistic earnings projections that are not credibly attainable.
"But if you look at it from just from a pure stock perspective, I think they're going at some crazy valuations. So essentially um to justify those valuations that we are running at today, the earnings number have to be crazy, right? And I don't think so anyone in the right mind is able to give that earnings number."
Correct
Investing in AI stocks with unpredicted earnings and extremely high P/E ratios (100-300x) lacks a margin of safety and carries a substantial risk of significant wealth loss, akin to the tech boom.
"So as an investor, right? If I were to follow even a subjective investor like a Buffett's principles, um I would say that if I can't predict earnings, I'm not going to touch the stock because then there's no margin of safety, right? If you're entering at say like a 100 times or 200 times or even a 300 times earnings, what's the margin of safety that you have, right? You don't know because if you're wrong, if the industry changes, you could lose probably 70 80% of your wealth also. And we've seen that in the past to the tech boom."
Correct
While AI will undoubtedly transform businesses, AI stocks are not always sound investments due to high valuations. Profitable opportunities can also be found in undervalued, less glamorous industries.
"The AI boom is going to be there. But and and businesses are going to change because of this. We're seeing that today. But does that become a great investment? No, not always. you know it might be a very you can find a very boring industry and you can make a lot of money because it's available at a cheap price."
Correct
Tesla's current market lead makes it difficult to identify any competitors that could realistically surpass its position in the near future.
"I'm just trying to understand how could someone else come and beat Tesla right now because they're so far up in the game. I can't even think of a second place competitor for this."
Correct
Warren Buffett views Apple not primarily as a tech company, but as a retail business with immense brand power, capable of selling any product.
"But he doesn't look at uh you know Apple as a tech he doesn't look at it as a pure tech business. He looks at it as a retail business. Tomorrow Apple can sell anything and people will buy it. It's the brand power."
Correct
Insurance companies, including those associated with Buffett, manage risk by calculating probabilities of various catastrophic events, acknowledging potential shortfalls if multiple extreme events occur simultaneously.
"Right? So they run on probabilities again essentially how many people die this year? What if there's a calamity then what will happen? And Buffett has also done this math and he's actually said it openly like okay if these calamities plus this earthquake plus this hurricane all of these things happen in one year maybe we'll not be good for the money."
Pending
A key element of Warren Buffett's wealth accumulation was leverage, utilizing public funds from his insurance business for market investments.
"So how Buffett became actually rich is through leverage. Right. He had 100 rupees but he took 10,000 rupees of the public from the insurance business and redeployed that in the markets."
Correct
The difference between market returns (e.g., 12%) and policyholder returns (e.g., 4-5%) yields an alpha of 6-7% for insurance companies, a leverage strategy that contributed significantly to Buffett's wealth.
"So say they're making even 12% right. So the alpha 6 7%. So this is the game. This is the game and that's how actually Buffett. So there are two aspects to it. One is stock picking skills. But to become that large and to become the richest guy you know on this planet essentially there was this was a form of leverage that he took."
Pending
Holding cash is an implicit form of market timing, signifying a decision to refrain from investing.
"So when you sit on cash, you are unknowingly timing the market, right? That means that you're not investing."
Correct
Buffett's market timing ability is attributed to his extreme dedication (12+ hours daily for decades), a level of commitment that makes his approach difficult for most to replicate.
"But he does time the market. But that's because he's an expert right he's saying see I do this for for 13 hours a day and I tell people like you want to become like Buffett you know wake up at like 7:00 reach office by 9:00 spend 12 hours a day don't do any buying don't do anything right just read read read and do that for 30 40 years of life you'll become like that right I don't think so anyone can do that"
Pending
A luxurious lifestyle in South Mumbai, assuming housing is owned, can be sustained with an annual budget of 1 to 1.5 crore rupees.
"I think if you have a house if you leave your house aside. Um, luckily I already have a house. But you know, if you if say for example you already have a house, if you had to live very luxuriously, you could spend like anywhere between 1 to 1 and a2 cr rupees and live very luxuriously in a year like in a year."
Correct
For the speaker, investing becomes a game focused on continuous improvement in research and skill, with the monetary amount becoming secondary after reaching a certain wealth level.
"see essentially for me I think I look at it as a game right for me like life is a game and essentially investing also becomes a game and after a point you know for everyone I don't think you know whoever you are whether you're a buffet manga Ramde I think the number stops mattering right like I don't think so the number is you know I think it's a game that okay fine can I get better at this can I wake up and do better research"
Unrated
The speaker prioritizes increasing income over cutting expenses, viewing investing as a game focused on enhancing research skills rather than solely accumulating wealth.
"So essentially for me I think I look at it as a game right for me like life is a game and essentially investing also becomes a game and after a point you know for everyone I don't think you know whoever you are whether you're a buffet manga Ramde I think the number stops mattering right like I don't think so the number is you know I think it's a game that okay fine can I get better at this can I wake up and do better research"
Pending
Warren Buffett considers his failure to invest early in Amazon and Walmart as his most significant financial regrets, equating it to a $10 billion loss.
"My biggest mistake is I didn't buy Amazon early on. My my biggest mistake is I didn't buy Walmart. It was a $10 billion mistake."
Correct
A 10 lakh investment can grow to 10 crores in 20 years with a consistent 25% CAGR, with the first 10 years yielding 1 crore and the subsequent decade yielding 10 crores.
"So realistically speaking today if you have 10 lakhs it is possible in the next 20 years that 10 lakhs can become 100 crores. If they generated 25% CGR it can become 10 crores in 20 years. Oh 100x right? Sorry 100. If I have 10 lakhs 10 lakhs can become 10 crores in 20 years. Assume you can grow it by 25% CGR every year. It's that simple. Just 26% CGR. So your first you know the first 10 years is your 10 lakhs becomes a cr and then the next becomes 10 crores."
Pending
'The Little Book That Beats the Market' provides a formula for wealth building that can be implemented and tested using Excel.
"So that book essentially, you know, gives you that formula that how you can, you know, actually build wealth. Oh, there's a formula only. There's a formula. In fact, you can, you know, like take that formula down, run a few tests, you can make it on Excel."
Correct
Implementing a quantitative model based on ROC and EV/EBITDA rankings yielded approximately 25% annual returns.
"And I picked up ROC, EV bida, gave it a ranking and actually saw I was like, damn, this is giving like 25% peranom"
Pending
Building knowledge in investing leads to conviction, which is essential for making full commitments to investments.
"So I think it's a great starting point. So if you want to be successful, you have to build knowledge and with that knowledge, conviction will come. Once you get that conviction, then you can go all in"
Pending
Simple quantitative models can outperform institutional investors. Starting early is the most critical factor in investing.
"Um you can beat institutions by simple models. So I think you know why don't you get your hands dirty and start and starting early is probably the most important thing."
Pending
Continuous money printing is expected to lead to currency devaluation, making it worthless and prompting people to avoid holding it.
"So no one wants to hold currency anymore. So what you're saying is this will keep continuing. Printing will keep continuing. Printing will keep continuing. Value of currency will be worthless."
Correct