📢Attention Stock Investors! (Issue 019)

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In today’s Issue 📥 :

• Warren Buffett’s Annual Letter.

• Willpower Alone Won’t Cut It.

• From being ‘nervous’ to handling new fame.

• Indian Managers’ Sweeter Success.

Buffett’s Annual Letter Unveils 3 Key Lessons for Savvy Stock Investors

Warren Buffett’s yearly letters to Berkshire Hathaway shareholders are never short on stock investing insights. This year was no exception, as Buffett wrote extensively about how only a few winners are required to make a fortune, why one should strive to locate bits of amazing firms at excellent prices, and why one should be a business picker rather than a stock-picker.

Buffett has one more piece of advice for investors: “Find a very smart high-grade partner – preferably slightly older than you – and then listen very carefully to what he says.” This, he said, is in the context of his long-time partner Charlie Munger, who is Vice Chairman at Berkshire Hathaway.

Weeds wither away in significance as flowers bloom: Warren Buffett’s latest annual letter highlights how a few winners can work wonders over time. He cited Berkshire’s purchase of 400 million shares of Coca-Cola in 1994 for $1.3 billion, which generated $75 million in cash dividends that have grown to $704 million by 2022. Berkshire’s investment in American Express has also seen annual dividends grow from $41 million to $302 million. Although the dividend gains are not spectacular, they have brought important gains in stock prices. At year-end, Berkshire’s Coke investment was valued at $25 billion and Amex at $22 billion.

Wonderful businesses at wonderful prices: Buffett said that sometimes publicly-traded businesses can be bought at really good prices, but it’s important to know that the stock market can also have foolish prices. He thinks that the stock market is not always predictable like it is in textbooks. When it comes to controlled businesses, they are usually expensive and not available at bargain prices. Owners of these businesses usually won’t sell them at a low price unless they are under pressure to do so.

Be business-pickers, not stock pickers: Buffett said that Berkshire invests in publicly-traded stocks based on their long-term business performance, not for quick buying and selling. He added that Berkshire will always keep a lot of cash and US Treasury bills, and a variety of businesses.

“Our CEO will always be the Chief Risk Officer – a task it is irresponsible to delegate. Additionally, our future CEOs will have a significant part of their net worth in Berkshire shares, bought with their own money. And yes, our shareholders will continue to save and prosper by retaining earnings,” he said.

IMPROVEMENT SIP

Willpower Alone Won’t Cut It

Many of us have heard the saying, “where there’s a will, there’s a way.” While having willpower is important, it may not always be enough to overcome our environment. As an entrepreneur and author James Clear notes, “In the long run (and often in the short run), your willpower will never beat your environment.”

Clear argues that our environment plays a significant role in shaping our behavior and habits. For example, if we keep unhealthy snacks in our homes, it may be difficult to resist the temptation to indulge in them. On the other hand, if we surround ourselves with healthy foods and exercise equipment, we are more likely to make healthy choices.

This idea is supported by research on behavior change. A study published in the journal Health Psychology found that individuals who made changes to their environment (such as removing unhealthy foods from their homes) were more successful in sticking to their health goals than those who relied solely on willpower.

One real-world example of this concept in action is the famous “marshmallow test.” In this experiment, children were offered a marshmallow and told that if they could wait 15 minutes before eating it, they would receive a second marshmallow. The results showed that children who were able to delay gratification had better outcomes in areas like academic achievement and social skills. However, more recent research suggests that the ability to delay gratification may be more strongly influenced by environmental factors like socioeconomic status, rather than innate willpower.

So what does this mean for us in our daily lives? Rather than relying solely on willpower to achieve our goals, we can take steps to shape our environment in a way that supports our desired behaviors. This might mean removing distractions from our workspace, setting up a dedicated exercise space in our home, or surrounding ourselves with supportive friends and family.

HOT SIP

The Secret Ingredient Behind Indian Managers’ Sweeter Success

Just Indian things: Some of the top projects in engineering science, data science and chip design are instances of the rigor of work an Indian is prepared for and brings to the party.

The nomination of Indian-American Ajay Banga as the next head of the World Bank is the big news of the week, highlighting the success of Indians and those with a connection to India globally. With a population of 1.4 billion people, it is natural that Indians who have left the country will excel wherever they go. The reasons behind their success are explored objectively, with a focus on good “managers,” who are successful in various fields. Out of 18 points, the top three reasons for Indian managers’ success overseas are discussed.

The suppressed Indian: The theme of suppression has been prevalent in Indian life, with invaders, British rule, and societal systems leading to a state of mind that has been ingrained for decades. Suppression takes various forms, including power, availability, exposure, opportunity, and gender. However, Indian managers who have gone through these challenges are stronger and have the ability to never take things for granted. They have seen tough times and are prepared for rainy days, even in times of prosperity.

A pressure-cooker environment: In Indian households, pressure is a normal part of life, with strong family bonds leading to shared joys and sorrows. Pressure to perform well in school comes from various sources, including family, teachers, peers, and competitive exams. However, no one complains about this pressure as it is seen as preparation for the tough years ahead. The Indian way is to not dream of an easy life but to work hard and face challenges head-on.

Naked and ambitious: The Indian manager’s hunger for success is legendary, and they never take anything for granted. They work hard and put in the effort to achieve their goals. This hunger is ingrained in the DNA of Indian managers, and they approach tasks with a high degree of solution appeal. Indian managers are known for their rigorous work in fields such as engineering science, data science, and chip design.

SMALL SIPS

Most Likely: The Covid virus most likely leaked from a lab in Wuhan in China, FBI director Christopher Wray said. “The FBI has for quite some time now assessed that the origins of the pandemic are most likely a potential lab incident in Wuhan,” Christopher Wray told Fox News in an interview.

Naatu Naatu: Naatu Naatu, the arresting tune from the Telugu action epic *RRR,* will be performed at the Oscars ceremony this year, the producers said on February 28.

Proven Habits: While habits are repeated behaviors, beliefs are repeated thoughts. Mastering both are critical to your success as an entrepreneur. By consistently engaging in beliefs and habits that support your goals and values, you can fulfill your potential and achieve your goals — whether that be in your finances and career, or in your personal development and relationships. Here are five proven habits to shape your mindset and create success.

Citi: Axis Bank said on Wednesday that it has completed its acquisition of Citibank’s India consumer and non-banking finance businesses. The deal, announced in March 2022, has been closed for a cash consideration of $1.41 billion (Rs 11,630 crore) in one of the largest deals in the Indian financial services space. The acquisition will help Axis close the gap with larger peers like ICICI Bank and HDFC Bank.

Aren’t too close: The near-Earth asteroids are all passing within 4.6 million miles (7.5 million kilometers) of our planet — close enough to make NASA’s potentially hazardous asteroid (PHA) list — but none will come closer than 2.2 million miles (3.5 million km), according to NASA’s weekly chart of asteroid passes.

With CHAI ☕

Ceo: CRED CEO Kunal Shah Reveals His Salary, Sparks Debate On Internet.

How to: handle sex questions your child asks?

Aww: They asked for a photo without the coat and she said it’s so cold.

It’s Interesting: Does an Indian currency note with anything written on it become invalid?

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