Samir Rachh's most precious investing lessons

The most fundamental thing about investing in the stock market is to recognise and realise that when we buy shares, we don't just pay the price but we also become a partner in that business. It's obvious that while becoming a partner, one would want to get associated with good people and good businesses. There is no point in partnering with people who are not honest, not capable, not passionate, not responsible, and those who are not savvy financially, business-wise and otherwise. Also, there is little sense in partnering with businesses which are not good. This means businesses which have limited growth prospects, poor return on capital employed, no free cash flows, and which are heavily dependent on the government, etc. Thus, the quality of promoters and business are two most important things.

This article was originally published on July 28, 2022.