Rajeev Thakkar's most precious investing lessons

As a young adult who joined the financial markets in 1994, there have been numerous lessons along the way. Do not leverage while investing The first lesson which came relatively quickly was the damaging effect of leverage. The company that I worked for recruited from among the brightest people around. Many of them are still considered among the best in the investing field. However, the company used leverage in its equity investments and was on the verge of bankruptcy very soon. It does not matter how good an investment thesis is if there is no capacity to hold the investment through volatile times. One will have to sell the investment on account of margin calls of the broker or the banker/lender forcing a sale. Do not trust easily As a fresher, I was an intern in the investment-banking division and was helping with the preparation of offer documents for IPOs and so on. When I loo

This article was originally published on January 17, 2022.