Dharshana Ilamperuma’s Post

When investing, my biggest worry should be myself and my bad decision-making - that's it! Instead of worrying about interest rates, who is president, inflation, or wars - I focus on three things that I have total control over: 1) Managing my cash flow plan so I never worry about market volatility, which is necessary to grow my portfolio in the long term. This includes reserves in high-yield-savings-accounts earning at least 5%, maintaining excellent credit scores, multiple flexible lines of credit, and staying on budget consistently. 2) Investing in high-quality companies with high growth, high gross margins, and committed leadership with substantial equity in the game that is innovating in a market with a large overall total addressable market (TAM). These well-managed companies will thrive during economic storms and come out stronger than ever. 3) Staying level-headed and grounded in data and history so my emotions never cause me to make reckless moves. My brain is hardwired to be a terrible investor; I need to understand that I have systems, tools, and principles to combat this actively. Having my cash flow on point (#1) helps relieve much pressure in this area, but seeing portfolio drops is never mentally easy. I've even gone as far as listening to simulated market bloodbath scenarios and visualizing the exact moves I take and don't take - this ultimately helped me make all the right moves when actually going through the major turbulence during Covid.

When investing, my biggest worry should be myself and my bad decision-making - that's it! Instead of worrying about interest rates, who is president, inflation, or wars - I focus on three things that I have total control over: 1) Managing my cash flow plan so I never worry about market volatility, which is necessary to grow my portfolio in the long term. This includes reserves in high-yield-savings-accounts earning at least 5%, maintaining excellent credit scores, multiple flexible lines of credit, and staying on budget consistently. 2) Investing in high-quality companies with high growth, high gross margins, and committed leadership with substantial equity in the game that is innovating in a market with a large overall total addressable market (TAM). These well-managed companies will thrive during economic storms and come out stronger than ever. 3) Staying level-headed and grounded in data and history so my emotions never cause me to make reckless moves. My brain is hardwired to be a terrible investor; I need to understand that I have systems, tools, and principles to combat this actively. Having my cash flow on point (#1) helps relieve much pressure in this area, but seeing portfolio drops is never mentally easy. I've even gone as far as listening to simulated market bloodbath scenarios and visualizing the exact moves I take and don't take - this ultimately helped me make all the right moves when actually going through the major turbulence during Covid.

When investing, my biggest worry should be myself and my bad decision-making - that's it! Instead of worrying about interest rates, who is president, inflation, or wars - I focus on three things that I have total control over: 1) Managing my cash flow plan so I never worry about market volatility, which is necessary to grow my portfolio in the long term. This includes reserves in high-yield-savings-accounts earning at least 5%, maintaining excellent credit scores, multiple flexible lines of credit, and staying on budget consistently. 2) Investing in high-quality companies with high growth, high gross margins, and committed leadership with substantial equity in the game that is innovating in a market with a large overall total addressable market (TAM). These well-managed companies will thrive during economic storms and come out stronger than ever. 3) Staying level-headed and grounded in data and history so my emotions never cause me to make reckless moves. My brain is hardwired to be a terrible investor; I need to understand that I have systems, tools, and principles to combat this actively. Having my cash flow on point (#1) helps relieve much pressure in this area, but seeing portfolio drops is never mentally easy. I've even gone as far as listening to simulated market bloodbath scenarios and visualizing the exact moves I take and don't take - this ultimately helped me make all the right moves when actually going through the major turbulence during Covid.

As we close another year, it’s a good time to reflect on the lessons we’ve learned from managing wealth in an ever-evolving market. The longer we navigate this world, the clearer certain truths about investing and human behavior become. Here are some of the insights we’ve gained. 1. Risk is Personal: Your experiences shape how you perceive risk. While risk-taking should align with your goals and circumstances, life experiences dictate your comfort level. Planning with those experiences in mind is essential. 2. Intelligence ≠ Success: Emotional control outweighs intellect in investing. As Warren Buffett said, "What you need is the temperament to control the urges that get other people into trouble in investing." Emotional intelligence is the key to long-term success. 3. Everyone’s Question is the Same: At the heart of every conversation is a version of, "Am I going to be OK?" Financial planning exists to help answer that question with confidence.

Three Typical Investing Mistakes to Steer Clear Of.... Investing is a road with lots of chances for learning, development & occasionally mistakes. Still, avoiding these 3 typical errors can greatly affect your financial performance. 1. Tracking Trends While it would seem wise to jump into a company after it has already climbed, the major gains are usually behind you by then. It's the secret. Try to spot strong, long-term investments rather than allowing the buzz to control you. 2 Treating Stocks Like Lottery Tickets Investing is not luck-based. It's about careful study, a strong plan, and the endurance to see it through. Not in one day; wealth increases progressively over time. 3 overconfidence While confidence can propel success, overconfidence can result in dangerous, poorly diversified actions. Assuming you have it all figured out could be very expensive. Spread out, keep rooted, and keep learning about the market. 💡 The process involves mistakes. Learning, growing, and wise decisions made along the road really count. Let us concentrate on deliberately, patiently, knowledgeably accumulating riches. Follow Value Finance School & Anand John Nellyet for such insights.... Stay connected....

I recently delved into a fascinating read, 'The Education of a Value Investor,' written by Guy Spier and published in 2014. I found it a compelling journey of self-discovery through the world of value investing - making it a must-read for beginners and indeed, anyone interested in the field. If you want to start right, I recommend coupling it with Warren Buffett's letters. The book's brutal honesty, transformative insights, and real-life tales captivated me. It exposes the financial industry's shadows and vices, rooted in misaligned incentives and human biases. It reveals how poor decisions can lead anyone down an undesirable path regardless of our background. The market will test you - authenticity and independence from external validation are non-negotiable. More than a professional journey, it paints the portrait of a personal voyage. A key concept that resonated with me was the choice of environment. We often overestimate our influence on our surroundings while undermining their effect on us. It's crucial to surround ourselves with systems that naturally promote desired behaviors to achieve our long-term goals. Choosing the environment extends to selecting your life partner and friends, and even the heroes you admire and follow. Guy’s journey from reading 'INFLUENCE' by Robert Cialdini, to sending letters of gratitude, to meeting Mohnish Pabrai, and eventually having lunch with Warren Buffett himself is mind-blowing! One practical tool I learned was the "survival" checklist to avoid fatal errors. Creating this requires conscious post-mortems, time and effort. Spier suggests asking questions like, 'Does the company have control over its destiny?', 'Do I know the character of key members of management?', and 'Is there enough margin of safety, or am I looking for something more (trying to appear smart, seeking approval from others)?' Many thanks to Guy Spier for sharing his enlightening journey.

📚The Power of Financial Wisdom: Lessons from 'The Intelligent Investor' In the world of finance, knowledge is not just power—it's the foundation of success. One book that stands out in imparting timeless lessons is "The Intelligent Investor" by Benjamin Graham. This classic is more than just a guide to investing; it’s a blueprint for building long-term wealth with discipline and patience. Here are three powerful lessons that stood out to me from Graham’s work: 1️⃣ Invest with a Margin of Safety: One of Graham's core principles is the importance of having a margin of safety in every investment. This means buying securities at prices significantly below their intrinsic value, so even if the market moves against you, the risk is minimized. In life, this teaches us to never overexpose ourselves—whether it’s in our finances or our personal endeavors. Protecting yourself from downside risk is just as important as chasing upside opportunities. 2️⃣ Embrace Long-Term Thinking: Graham emphasizes that successful investing is a marathon, not a sprint. The key to wealth is not making quick gains but consistently making smart, patient decisions over time. This lesson applies to all aspects of life—whether in business or personal growth. True success comes to those who are willing to think long-term and are committed to steady progress rather than chasing quick wins. 3️⃣ Focus on Fundamentals, Not Market Trends: Graham cautions against being swayed by market speculation and fleeting trends. Instead, he advocates for understanding the intrinsic value of an investment, regardless of short-term market fluctuations. This principle can be applied to both investing and our careers—focus on building skills, relationships, and a strong foundation rather than jumping on the latest bandwagon. The Intelligent Investor teaches us that financial wisdom doesn’t come from chasing the next big thing, but from being grounded in value, patience, and sound decision-making. Whether you're investing in the stock market or in yourself, these principles are the keys to achieving sustainable success. #theintelligentinvestor #FinanceLessons

Can too much knowledge hold you back from success? I recently stumbled upon a thought-provoking idea. A #finfluencer questioned the value of expertise if it doesn't translate into action. 🤔 This made me reflect on the world of finance and investments. I've met brilliant CFA analysts who, armed with extensive knowledge, chose to stay out of the housing market. Their caution stemmed from understanding every risk and nuance. Meanwhile, others jumped in based on "All houses go up" and surely some FOMO. Here's the thing: - Knowledge is powerful, but it can also paralyse. Knowing too much might make us overthink and procrastinate. - Action, even with limited information, can sometimes lead to success. - In business, I've seen small ventures thrive by taking calculated risks, not just by knowing every detail. Perfection is the enemy of profitability. Balance is key. Use your knowledge to make informed decisions, but don't let it stop you from taking action. #randomthoughts

Quote of the week!💭 “Time is the friend of the wonderful company, the enemy of the mediocre.” – Warren Buffett. Warren Buffett's quote speaks to the relationship between time and the performance of companies. Here’s a breakdown. 1. "Time is the friend of the wonderful company" Long-Term Growth: Wonderful companies, those with strong fundamentals, competitive advantages, and robust growth potential, benefit from time. As these companies continue to operate and grow, they compound their earnings and increase their market and shareholder value. Compounding Effect: Time allows for the compounding of returns, meaning that the longer you hold shares in a “wonderful” company, the more its value can increase, and the greater your returns. 2. "the enemy of the mediocre" Lack of Growth: Mediocre companies typically have average performance and limited growth prospects. Over time, their shortcomings become more apparent, and they often struggle to maintain market share or profitability. Market Competition: Time allows better companies to innovate and gain market share, further disadvantaging mediocre companies. These poorly run companies may find it increasingly difficult to compete and may be acquired or file for bankruptcy. 3. Investment Strategy Implications Long-Term Focus: The quote advocates for a long-term investing approach, where investors should focus on acquiring and holding shares in outstanding companies that are likely to thrive over time. Quality over Quantity: Investors should be selective and prioritise quality investments over a diversified portfolio of mediocre companies. This approach maximises the benefits of time in enhancing returns. 4. Overall Meaning Buffett’s quote emphasises the importance of investing in high-quality companies. Time is a positive force for those with strong fundamentals, allowing their potential to be realised and appreciated. In contrast, time is detrimental to companies that lack these qualities, as their deficiencies become more pronounced over time. 💬 Comment below if you found this insightful, learned something new or wish to add more value to this post. Let’s start a convo! Visit our website for more on finance and investing.

If it feels exciting all the time, you are probably not making money. Investing is not a game. It is not about thrill, quick wins, or chasing trends. It’s about patience. It’s about discipline. It’s about sticking to the plan, even when it’s not fun. The best investors know this: • They focus on long-term growth. • They trust the process, not their emotions. Wealth is not built overnight, it is built through consistency. So, don’t look for entertainment in your investments. Look for results. Boring today. Rewarding tomorrow. #finance