Good morning my dear readers,

Happy Friday to you.

I am happy to report that your Negen PMS has now given a 5yr CAGR of +26.84% vs +15.13% for the benchmark BSE500 index.

(Data as on Sept 30th, 2023).

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The importance of 'Original Thinking'.

I have come to believe that success for full time investors can only come via original thinking.

Simply put, if our thoughts and our emotions are the same as everyone else's, then we cannot do the 'out thinking', which is required to act against everyone else and be a contrarian.

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1- Competitive Advantage:

In today's world of finance, EVERYONE and their Grand mother has access to the same information and resources.

In order to gain an advantage, we must be able to think differently.

Original thinking can help us see emerging trends in business or spot undervalued assets which most people often overlook.

2- Risk management:

I am pretty sure that the great investors have sat down in the past, closed their eyes and thought of RISK and how they can think of ways to reduce it.

And hence, concepts such as portfolio sectoral diversification, adding number of stocks to portfolio, hedging, SIP etc came into being.

3- Learning and Growth: Embracing original thinking requires continuous learning and self-improvement.

This can lead to personal growth and a deeper understanding of financial markets, which, in turn, can enhance your investment success over time.

And lastly,

4- Adaptation: Markets are dynamic, and what worked in the past may not work in the future.

Original thinking is always going to allow us to stay relevant, which is very important.

Questions such as, 'what new is happening?', will become a constant for original thinkers.

Conclusion: Original thinking is not as difficult as one may imagine it to be.

We all have the ability to think differently but mostly we are just too distracted with social media, news or just a fast paced life. All of these distractions make us less 'self aware'.

All of us have some specialty.

For example: if you work in a hospital or happen to visit one, just sit in the corner and OBSERVE the activity and you will realize what is going on with our society and you will find investing clues.

*Note: While original thinking is important, it should also be accompanied by thorough research and a solid understanding of the fundamentals of investing.

It is only suitable for full time investors.

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That is all for me today my friends.

Wish you all a very happy Navaratri.

By the way, a pretty interesting series on Netflix called Kaala Paani. I am planning to watch this over the weekend.

(Ofcourse, with my Blue Tokai in hand).

What are your plans?

My Best,

Neil Bahal

Founder

Negen Capital

Ps- I am so glad that Football is back this weekend. Will be fun.

Disclaimer: This newsletter is for educational purposes only. While the newsletter discusses just general market insights and past case studies, still, the stock market is a very risky place which can result in losses.

Hence, always check with your financial advisor before acting on any contents of this newsletter.

No one has paid us to write this newsletter.

No representation or warranty, implied or statutory, is made as to the accuracy, completeness or fairness of the contents and opinion contained herein. The information can be no assurance that future results or events will be consistent with this information. Any decision or action taken by the recipient based on this information shall be solely and entirely at the risk of the recipient

Again, investing in equity market has high risk. You must consult your financial advisor before making any stock market related decisions.

Negen Capital is a SEBI registered PMS & AIF.