Safal Niveshak: Value investing requires a great deal of research, discipline, and patience. What do you suggest an investor just starting out could do to practice these habits to ingrain them in his/her investing mindset? How easy or difficult were these and other relevant habits for you to form in your early years as a value investor?
Prof. Bakshi: One of my role models is Charlie Munger who often talks about the idea of “inversion” like the man who wanted to know where he was going to die so he never went there. So, I’m going to use the same trick by inverting your question. Let me focus on not what an investor who’s just starting out should do, but on what he must avoid doing.
Don’t ask the barber, you need a haircut
So, my first advice to investors who are just starting out is that they must avoid listening to intermediaries, whose interests are not aligned to their own interests.
You’re really on your own out there. Warren Buffett’s office table has a framed
“A fool and his money are soon invited everywhere.”
People who invested in the Reliance Power IPO or the Facebook IPO would know what that means
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