My top Diwali tips. That too in advance.

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Subscribe to enjoy similar stories. MUMBAI : I finally decided to join the bandwagon. Today, I am going to give you tips.

That will make you money from this Diwali to the next. I believe this could be a game-changer. So, read carefully.

Those of you who are regular readers of Contramoney may have guessed that I would retract this claim immediately. Well, you are half right. I will give you a “tip", just not “tips".

So, you, too, eat the humble pie for trying to make a short-term prediction. So, what is my Diwali tip? I am coming to that. In fact, I will take you through the entire process of selecting the stock.

You see, unlike the gurus on TV, I don’t believe in dishing out advice for free. If you want something, you need to work for it. First, I decided to ignore all the macro filters.

As Warren Buffett and Charlie Munger have often said, getting the macro right is extremely hard. There are just too many variables. So, I just dropped all these filters.

For instance, no more of India will grow, so car sales will grow, and therefore, I should buy so and so auto stock. This logic is too generic and too faulty. On a lighter note, if this were true, the Ambassador would still be the top seller in India, and the stock of Hindustan Motors Ltd would be a top performer! On the contrary, I just focussed on individual companies.

After all, that’s what I am getting when I invest. Second, when deciding on the specific company, I focussed on a few things, some of which were subjective and others that could be measured easily. When it comes to the subjective part, there really is one thing: The integrity and competence of the management to deliver over the long term.