Hi, my name is Aziz Dodhiya and I am the chief investment officer for the Valueoperations fund. Our stock market investment approach is simple, we do not bet on daily up’s and down in the market. Instead, we buy outstanding businesses with bright prospects at right price and all the other times we protect your funds by keeping them in the ‘safety net’ of cash.

Welcome to the part one of common sense investing series of Valueoperations. Let me start this series by letting you know that you already know how to do well financially in the stock market. If you been able to spot bargain while travelling overseas in different currency or buying your groceries from the supermarket at bargain price then let me tell you, you are already over qualified for this journey that we will travel together in this series.

Well, it might be very little help if you have master’s degree or PhD to be successful in the stock market, but I think could also be one of the reason of hindrance to be successful.

In this whole series I will try to show you how much you really already know about investing successfully in the stock market and share with you three common sense steps of how to invest successfully in the stock market and achieve great returns. If you follow those three simple steps in the long run of your investment journey you will tend to know how things turn out to be okay.

I will try to present this series in such a way that it appeals to the wide audience and also in such a way that it is easily understood by anyone. This whole series is designed to make you understand that main ideas for successful investing are simple and you will learn in such a way that you can explain them to your kids, neighbours and even to your mother.

We will together do the numbo –jumbo that mystifies many people that you need to hold the hands of professional or finance guru to understand them. Frankly, many professionals and finance guru can use the investment ideas that I will be sharing in this whole series. If you know very little about investing then you will embark on valuable adventure, and if you know a great deal about investing and are the CEO, CFO or a corporate finance professional, financial planner or adviser be prepare to question some of the things you previously held them as truth.

Years ago when Bharti Shipyard bought other shipyards, Suzlon Energy purchased European assets, Bharti Airtel Purchased African asset and Tata Motors purchased Jaguar and land Rover assets, a common thread tie them together where they had to restructure their balance sheet, refinance or even write down their investments and that’s where you lose money.

We will focus on those companies management decision in this article on how to spot these businesses and management that can destroy your retirement savings or your investment nest. Hopefully the point that I want to address through this blog reaches to all the CEO, CFO and independent directors that your investment decision can impact financial future of millions of investors who invest in their companies and yet they do not understand how they are destroying investor’s wealth.

If you are reading this article and do have a financial planner or adviser then please send the link of this article to them, maybe they might like to know one of this investment truth that we will cover in this series. Whenever I attend any accounting or finance conference many people throw this one question to me, if these people are so smart why they keep repeating those same mistake? Partly, the answer to that question is that they believe like many others that activity leads to the superior results. They believe that in order to do well in stock market they need to keep doing something. But in the game of investing your own funds or shareholders’ or clients funds whether in the basket of shares or a multi-billion rupees acquisition is not a game where action equals to rewards. As someone had said, “… like standing in the quick sand, running faster, may make the situation worse”. Forget about talking years back acquisitions or bad decisions taken by these professionals, we think the same mistake DCB bank management is doing today and following their professional ancestor’s path.

This article of the series is intended for you to understand and replace the ‘running faster’ and ‘quick sand’ with strong foundation of basics of investment ideas and understand that those two words are the biggest trap. I am looking forward to present the part two of common sense in investing next week till then if you have any questions or need more clarification do write to us through comments section.