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1. Exit the stock when it was overpriced and re-entere the stock when it is undervalued .

2. As investors, we can never have complete and full information. Perfect information is a myth. No one can ever know all there is to know about a company

3. If you look at Bharti shipyard, you will notice that the company reported good earnings growth year after year but its ROE was falling down every year.

4. Its important to gauge what management is doing with retained earnings. Because they need to justify why they are retaining those money and have a clear idea what they will do with it. If they don’t then that money should be passed to shareholders who are the real owners.

5. In essence, Buffett is saying, how earnings are re-deployed has significant impact on how company’s existing stream of earnings is evaluated. We all know item (1) and item (2) above. But what value would you assign to its earnings stream deployment?

6. Like everything else in life, here also, we forget that the key is to have a plan and execute it for consistency. The lack of discipline is what kills individual retail investors. We do not have conviction to execute our own well crafted ideas.

7. If price earnings ratio is greater than conservative growth rate, then stock can be assumed to be overpriced.

8. In essence, Buffett is saying, how earnings are re-deployed has significant impact on how company’s existing stream of earnings is evaluated. We all know item (1) and item (2) above. But what value would you assign to its earnings stream deployment?

9. Remember to dig in deep when everyone is bullish because that is when the major crashes have happened.

10. Ben Graham says you should consider a stock for investing only if its below P/BV-1.5 and PE below 16. So how much you can stretch that limit for excellent businesses is the question. If its excellent business, I can stretch it up to P/BV -5 and PE below 25.
Make sure (P/B) * (PE) < 22.5 ->  This is simple Ben Graham Formula.

11. This is what Peter Lynch (one of world’s best investor) says- Too much of diworsification (its not diversification), can kill the company.

12. If you buy into a great company, pay as little as possible and leave it aside as long as you can, you are bound to make some profits.

13. Stocks with extremely high PE ratios(above 50) in any industry are best avoided unless the growth prospects are humongous.

14. If Money is lost nothing is lost,
If Character is lost something is lost,
But if Health is lost everything is lost...

15. Don't forget that "numbers have no prejudices."

16. Successful investing is about running your profits and cutting your losses.

17. The stock market is a rollercoaster, so you have to ride out the peaks and bottoms.

18. Stocks with extremely high PE ratios(above 50) in any industry are best avoided unless the growth prospects are humongous.

•     The business still remains great but promoters are again contemplating QIP and raising funds for further expansion but having learnt about the evils of frequent equity dilution and increasing debt, I would stay away. Ideal way for the company was to fund the expansions from internal accruals in a phased manner.

•    Bad times [Market Crash] provide good investment opportunities for long term investors. These are the times when market doesn`t differentiate between horses and donkeys. It is beating down horses and donkeys equally. The market is valuing some horses at donkey prices. It`s perfect opportunity for long term investors to grab such horses.

Three reasons why markets rally on rate cuts:

1. Rate cuts will help economic growth.

2. Deposit rate cuts will lead to money moving from debt to equity.

3. Valuations get cheaper on a DCF and earnings yield basis as interest rates fall.

•     "If the job has been correctly done when a common stock is purchased, the time to sell it is almost never." - Philip Fisher 

•    The thing I like to say here is the idea of process versus outcome. The world looks at outcomes but really should look at the underlying processes that produce those outcomes.  If you have a good process, and if you stick to that good process, and if you improve it over a period of time, you must inevitably end up with a good outcome. 
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• Impatience is the number one enemy for any investor and patience is possibly the greatest virtue an investor can have.