The world of equities often feels like a maze. But there are always humble veterans with decades of knowledge and extraordinary wisdom ready to guide us, and Bharat Shah, the executive director of the ASK Group, indeed fills that role. We recently had the opportunity to interview him and pick his brain regarding how one of the most successful investors of the last two decades navigates the markets and picks his winners. Here's what he had to say. Warren Buffett once said, "Investing is simple but not easy." What are these factors/concepts that are simple enough to understand? Behind this statement of utter simplicity lies a profound truth. The fundamental principles of investing techniques, value creation and valuation methods are neither complex nor abstruse. But the difficulties lie in applying them and with consistency. As Yogi Berra says, "In theory, there is no difference between theory and practice. In practice, there is." What is it that interferes with applying principles? Human psychology and one's own personality. Innate character and temperament make even the brightest minds susceptible to straying from the right paths and committing follies. Knowledge is not a perfect substitute for ensuring that the right actions are undertaken. Intellect, while necessary, is not always a good substitute for discipline, character and wisdom. Intellect helps in understanding reality, like a snapshot at a point in time, but wisdom helps in grasping the reality of the whole meandering journey in its entirety. Intellect analyses well; it throws light, but wisdom illuminates the whole path. Intellect is rarely in short supply in markets, but wisdom is. People tend to overuse the faculty they possess most, but that may not be enough for enduring invest
This article was originally published on May 08, 2023.
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