Mint came up with interesting extra add on called “The Rich List” to existing newspaper. Time and again I have found there are timeless principle that helps one succeed in whatever one is doing. I think Mint tried to understand from the Rich what they do, its very good edition, would advice you all to read it.
There was one particular piece on SRK which I liked (Full article) and would like to highlight few interesting pointers that are very similar to that of long term investor.
- Do something you believe in – products/service being offered should fundamental fulfill a need that customer has.
2. stay humble , admit your mistake , learn from it and move on.
3. Get to know your finance very well – its not really rocket science to know that Sales minus Cost = Profit.
4. Fund capex internally.
5. Never borrow – this advise has been given to most of us time & again – if you borrow from bank it means bank pretty much owns you.
6. He goes of the extend saying avoid OPM – Other People’s Money in any form – be it a loan or even equity. Once you have shareholder, you need to manage them 😉
7. Everything said and done – Work Hard, Slog yourself and Just believe in what you doing
8. Finally – Play the game you know – Know your competitive advantage and know what you are not good at. He highlights this very beautifully, If you have knowledge on Restaurant business, invest in restaurant not in restaurant chain. Skill set to run a Restaurant and Restaurant chain are different and SRK knows difference.