Atul Sethi – Remember to Write Things Down

BIO: Atul Sethi is the founder and managing partner of Farnam Tree, an investment advisor based in Bangkok, which is currently under pre-licensing. STORY: Atul bought stock in a retail business, but the share price plummeted due to poor corporate governance. He kept holding onto the stock in the hopes that the price would go back to what he’d bought it. Instead, it kept going down, and he lost a sizeable amount from his investment. LEARNING: Pay great attention to the people at the helm of the company you want to invest in. Don’t anchor to the purchase price.   “Don’t stay anchored to a stock’s purchase price.”Atul Sethi  Guest profilehttps://www.linkedin.com/in/atul-sethi-1076344/ (Atul Sethi) is the founder and managing partner of https://www.farnamtree.com/ (Farnam Tree), an investment advisor based in Bangkok, which is currently under pre-licensing. After graduating from the University of Chicago, he spent 12 years at Credit Suisse in the Chicago, Singapore, and Bangkok offices. Atul started as a junior investment banker and later worked as a bank analyst in their Thailand Equity Research team. He left Credit Suisse this year and is now focused on Farnam Tree. Atul interned with Andrew in 2006. Worst investment everAtul wanted to invest in the stock market, and his approach was to invest in a company with a substantial competitive advantage. He found a business in the retail industry that seemed like a good fit. All the hard work fudging numbers, looking at the financial statements, and understanding the business model was made by Atul. But, his due diligence ignored some red flags on corporate governance. There was an insider trading issue involving one of the senior management members at the company. This issue, and other questionable decisions, are something that should have caught his eye, but he ignored them and went ahead and bought the stock. Due to these issues, the stock price started going down. Atul made the mistake of holding onto the stock while waiting for the price to return t