Jotak Nandwana – Sit Tight, Be Cool, Don’t Watch the Score
My Worst Investment Ever Podcast
Learning from Investment Mistakes and Strategies
The chapter delves into a personal investment experience, highlighting the importance of patience, long-term focus, and considering both fundamental and technical aspects of a company. It also discusses the efficacy of using preset stop losses and letting profitable investments grow, drawing insights from renowned investors like Jesse Livermore and William O'Neill.
Jotak Nandwana is a keen follower of the Indian stock market and has been investing money since 2010. He uses the CAN SLIM style to screen for growth stocks. He has been working as an Equity Analyst for MarketSmith India, since its inception.
Jotak has been involved in extensive studies on biggest winners in the Indian market. He manages the MarketSmith India model portfolio along with other research for William O'Neil India.
Jotak holds a Bachelor's degree in Business Management and a Master's degree in Commerce from Sukhadia University. He has also completed all the three levels of the CFA program.
In this episode, Jotak shares his learnings when he focused on his investment scoreboard more closely rather than the purpose of merely monitoring his gains. Watching the scoreboard affected his investment behavior significantly that resulted in some bad investment decisions. He then realized that even good investments can turn sour, given a dose of uncontrolled events.
"Talking about your bad decisions will help you to improve as an investor."
- Jotak Nandwana
What do you want to hear from the My Worst Investment Ever Podcast?
Resources:
Topics Covered:
00:48 – Andrew introduces Jotak Nandwana and shares that they follow the same method in investing
03:14 – Jotak shared why CAN SLIM Method is an effective style in investing
04:18 – Jotak narrates his investment with Bajaj Finserv and the lessons he learned
06:26 – The fixation with price and profit resulted in Jotak's "huge" mistake.
08:43 – Andrew's thoughts on capital gains tax
10:40 – Jotak reveals the mistakes he committed in the stock market and the learning experience he had
12:06 – Andrew give listeners advice about determining their investment horizon, and their goals must be to build their wealth in a long period
14:35 – Andrew throws light on the benefits of focusing on cutting your losses and letting your winners run
15:37 – Jotak added the importance of using Four Pillars rule in investing.
17:07 – Jotak gave a warning on looking at the scoreboard and its effects on your behavior and investing
Main Takeaways
Lesson 1: "Selling winners too quickly and holding on to losers are the eternal mistakes that are committed in the stock market."– Jotak Nandwana
Lesson 2: "Even if you're able to invest in the right companies, you won't make much money if your behavior is not ideal. Behavior is often ignored, but it counts the most. If you want to be a successful investor." – Jotak Nandwana
Lesson 3: “Successful investors always take care of their biases because they have no place for emotions in their investing style.” – Jotak Nandwana
Lesson 4: "Don’t get too worked up if a stock goes up after you have sold it, instead carefully analyze the business and if it still ticks all the boxes in your checklist, there is no harm in buying a good stock at a higher price.”– Jotak Nandwana
Lesson 5: "Do a post-analysis on a yearly basis and look at all the stocks that you should have bought, stocks that you shouldn’t have bought, stocks that you should have sold earlier and stocks that you should not have sold and this will certainly help in improving your overall investment returns."– Jotak Nandwana
Lesson 6: "Don't get caught up in the short term gain concept. Think about the 60 years ahead, that you're going to be managing your money and when you do that, all of a sudden the short term trades make less sense." – Andrew Stotz
Lesson 7: "It's better to preserve your capital, as I call it. Some people call it to stop loss. I call it preserved capital point (or PC) because stop loss is so negative, right? " – Andrew Stotz
Lesson 8: "Sit tight, be cool, know the score, don't watch the score." – Andrew Stotz
You can also check out Andrew’s books
- How to Start Building Your Wealth Investing in the Stock Market
- My Worst Investment Ever
- 9 Valuation Mistakes and How to Avoid Them
- Transform Your Business with Dr.Deming’s 14 Points
People Mentioned:
Connect with Jotak Nandwana:
Connect with Andrew Stotz:
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