Presentation made at Investors Carnival, Goa, 2018

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Investor Behaviour
Jiten Parmar
Twitter - @jitenkparmar
email : jiten.parmar@aurumcapital.in
https://aurumcapital.in
twitter - @Capitalaurum
email : info@aurumcapital.in

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IMPORTANT DISCLAIMER:
This presentation is prepared solely to provide information about behavioral aspects of
an investor. This presentation is NOT meant for equity investment. It should NOT be
construed as an investment advice for buy/sell/hold or any other form of
recommendation. This presentation does not recommend any price or price target for any
company discussed. Investment in equity shares has its own risks. The information
contained herein is based on my study and upon sources that I consider reliable. I,
however, do not vouch for the accuracy or the completeness thereof. This material is for
educational purpose and not intended for any investment decisions. I am not responsible
for any profit or loss incurred based upon it & take no responsibility whatsoever for any
financial profits or loss which may arise from the discussion thread above/anywhere in
communication. It is safe to assume that I, my family, friends have vested interest in any
of the companies/stocks discussed/presented here. None of this is a recommendation
from Aurum Capital.

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An INVESTOR in the
stock markets can
almost never lose
money.
*Conditions Apply

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INVESTOR Traits
TEMPERAMENT
 Temperament is the most important aspect in investing
 A temperate investor is one who focuses on these 4 aspects.
 CONVICTION
 DISCIPLINE
 PATIENCE
 SIMPLICITY
 Be your own person. No one is going to fish for you. Even if
someone does, turn that down. Learn how to fish, yourself

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6. CONVICTION
comes from research
comes from understanding the business and the sector you
are buying
comes from understanding the future potential of the
company
comes from buying it at a value (right price)
comes from focusing on investing, and ignoring the noise
Timing and TIME in the market, both are important
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INVESTOR Traits

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11. DISCIPLINE
 Be greedy when all are fearful and fearful when all are
greedy
 The HERD is mostly not right. Prefer LONELY trades
 IGNORE noise. Greece, Brexit, Rexit, Trump and Kim tweets,
temporary disruptions, trade wars, media. Most of the
times, these are great buying opportunities
 Understand the signals from the street
 Absolutely avoid Euphoria and FOMO
 Quest for multibaggers is a disastrous quest for most
 Multibaggers are not planned , they happen over time
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INVESTOR Traits

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Always have a mid and long term view. Always ask,
can I take a 20-30-50% correction in the stock I buy,
provided fundamentals are intact. Do I have the
courage/conviction to buy when these levels come ?
Investors will be better off looking at the long term
picture. Ignore short term volatility and noise. Use
them to your advantage.
Equity investing is about long term investing.
Understand market cycles.
Make sure you are buying for fundamental reasons.
Everything has a PRICE and a VALUE. Learn to buy
VALUE.
TIPs lead to PITs

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22. PATIENCE
An investor is never a complete investor without seeing a bear
cycle
Bear markets, steep corrections, fear are essential parts of a
market
Investments made in a bear market will probably be the best
investments you make
Dividends are the best balm in bear markets
Wait for opportune time to invest. Never lose sight of valuations
I am from a school of thought which doesn’t believe in buying
great companies at any prices. Wait for them to come at your buy
level
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INVESTOR Traits

23. Do more reading, understand industries in these times
Learn from your mistakes. Mistakes are the best
teachers
Mistakes will happen. Try to make fewer and smaller
over time
Great investors adapt and are flexible
Make notes. And review at regular intervals
Time is an investors friend. Impatience, their enemy
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INVESTOR Traits
SIMPLICITY
 Analyze, but don’t over-analyze. Over analysis often
leads to paralysis.
 Avoid too many data points. A lot are irrelevant most
of the times. Learn to look at appropriate data points.
 There is an EARN in LEARN
 Reward WINNERS.

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35. Know your style (cricket analogy –
Know the format you can play. A test
match player may not be a good T20
player. Understand self)
Be like “Rocky” (markets will throw
punches at you, learn to take them,
build your stamina to stay in the fight.
Survival is key, and when time comes,
deliver a knock-out punch)
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Two Analogies

36. Stock market is the only
market place where people
are unhappy when the goods
(stocks) are available at a
good discount
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About OUR company:
Aurum Capital is a research-based Investment Advisory services
company. Started by Jiten Parmar and Niteen Dharmawat, who
together have more than 4 decades of experience investing in
equities and guiding and mentoring fellow investors.
https://aurumcapital.in
twitter - @Capitalaurum
email : info@aurumcapital.in

38. Thank you
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