Browse Tag by investing truths
mumbai

Golden Financial Mantra’s.

Some very important financial tips that everyone should know ….

1. Avoid buying property on loans as it eats most of your earnings unless you have a clear plan for its repayment. It’s important to monitor cash flow. Though, the house will be your asset, your liability will be much more.

2. Start a SIP at a very young age. Try to save atleast 15–25 % of your earnings.

3. Avoid buying a car unless you use it everyday.
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4. Do not let this sentence scare you. “Mutual fund investment are subject to market risk. Please read the offer documents carefully before investing”. Most people avoid investing in mutual funds just because of this one warning. Yes, there is a market risk, but look at the history and growth of mutual funds.

5. Try having a simple wedding.

6. Atleast 20% of your wealth should be liquid so you can utilize it when necessary.

7. Considering inflation, you are actually losing money if it is in savings bank account. Do not keep huge money in savings bank account.

8. If you invest in stocks, pay due attention.

9. If you invest in stocks have a separate account for delivery investment and Intraday investment. It is easy to monitor this way and also makes tax calculation easy

10. Do not have a belief that property and car make you rich. Its what you save and invest, that is important.

11. Never invest in insurance for returns. Insurance is not an investment option. It is a risk management tool.

12. Never use credit cards for lavish spending. Use credit cards intelligently and for needs not for wants.

13. Cancel all credit cards before you die. Or inform family about all your accounts, credit cards, loans and saving now itself. Even a small residue will cost your family much.

14. Invest on yourself and then on other investments.

15. Always try to balance your earnings with your savings first, then on spending and loans. Never take unnecessary loans. Always have reserve and utilise them and unless no other go never take loan.

16. Always have a plan for future events on your career, life, spending and finance.

17. Always have a reserve on your savings for contingency and urgent situations.

18. Your personal life and health are the most important investment. Do have a regular health check and do healthy workout every day. Stay healthy and live happily.

mumbai

👉FIVE rules which an INVESTOR should follow?

Rule#1 Use Banks for financial transactions, short term cash management and credit management.

Rule #2 Use Insurance to cover the risks.

Rule #3 Use Gold to hedge your currency (i.e. Rupee).

Rule#4 Use Real Estate for consumption (Residence) or regular income (rent).

Rule#5 Use Capital market to create long term wealth.

Unfortunately, it happens otherwise.

People tend to use Banks and Insurances for investments,

Gold for consumption (Jewelleries ),

Real Estate for long term wealth creation and

Capital Markets for speculation and short term gain.

Needless to say, why they fail to create wealth.

mumbai

Investing rules – Maximise money per hour of research

Good Thoughts…

Investing rules – Maximise money per hour of research

-Read books from successful investors.

Stop watching TV News Channels.

Nobody knows the future, so stop asking.

Money is only one of the types of Wealth.

Crazy people of like nature enforce yet conceal each others’ craziness. Find your craziness and tone it to saner proportions.

Mean reversion is an enduring truth of market.

Average common man will buy more in peaks and less in trough.

Excesses in under and over valuation is an enduring theme.

Find High Growth Companies in Low Growth Industries.

Stop Finding companies in High Growth Industries.

Find out the type of investor you are, someone who buys on borrowed tips of one who researches on their own.

Find market leaders in small niches, not #3 or #4 players selling cheap.

Thinking in 3-5 year time frames and not 3-4 months / quarters.
Understand the business, competitive forces and ability to predict future of the business.

Stop thinking solely in PE terms.

Stop playing greater fool game.

Bet on four stocks at a minimum, don’t over concentrate, don’t over diversify.

Think independently. You will outperform the majority.

When there is no company worth investing in the country, go all cash, to go out of the country.

Get rich slow-but-sure, don’t buy lotto, don’t play in casino, don’t gamble, don’t leverage. Learn about online casino bonuses better.

Maximise money per hour of research, no point buying into a position requiring active monitoring. The person who makes 100 million from stock market by investing 1 hour per day wins over the person who makes 100 million by investing 6 hours a day. Time is finite and limited. Learning and knowledge is infinite.

Make money and stock market both your slave, make money and forget about them.

Never retire, work incessantly.

Money is means and not an end. Money is a slave to free you from your daily routine.

Show you have the creative potential and do something that nobody has ever done.

Have more creative ambitions in life than earning billions, you are more than your body (thankfully) that needs to be fed on money supplied goods and services alone and very soon you will enter a dimension where money will not work. How soon ? Likely before 2500 weekends.

Gradually drift into a field which you are passionate about, otherwise you are a big disservice to yourself and the society in a profession that is not your passion.

Buy damaged stocks, not beaten down companies.

Admit mistakes.

Learn from own and others’ mistakes.

Explain your picks to yourself with four convincing reasons.

 

Via @whatsapp

mumbai

30 Unfortunate Truths About Investing

30 Unfortunate Truths About Investing
1. The gulf between a great company and a great investment can be extraordinary.

2. Markets go through at least one big pullback every year, and one massive pullback every decade. Get used to it. It’s just what they do.

3. There is virtually no accountability in the financial pundit arena. People who have been wrong about everything for years still draw crowds.

4. There are tens of thousands of professional money managers. Statistically, a handful of them have been successful by pure chance.

5. On that note, some investors who we call “legendary” have barely, if at all, beaten an index fund over their careers. On Wall Street, big wealth isn’t indicative of big returns.

6. During Recessions, Elections, and Federal Reserve Policy Meetings, people become unshakably certain about things they know nothing about.

7. The more comfortable an investment feels, the more likely you are to be slaughtered.

8. Time-saving tip: Instead of trading penny stocks, just light your money on fire. Same for leveraged ETFs.

9. Not a single person in the world knows what the market will do in the short run. End of the story.

10. The analyst who talks about his mistakes is the guy you want to listen to. Avoid the guy who doesn’t — his are much bigger.

11. You don’t understand a big bank’s balance sheet. The people running the place and their accountants don’t, either.

12. There will be 7 to 10 recessions over the next 50 years. Don’t act surprised when they come.

13. Thirty years ago, there was one hour of market TV per day. Today there’s upwards of 18 hours. What changed isn’t the volume of news, but the volume of nonsense.

14. Warren Buffett’s best returns were achieved when markets were much less competitive. It’s doubtful anyone will ever match his 50-year record.

15. Most of what is taught about investing in university is theoretical nonsense. There are very few rich professors.

16. The more someone is on TV, the less likely his or her predictions are to come true. (U.C. Berkeley psychologist Phil Tetlock has data on this).

17. Trust no one who is on CNBC more than twice a week.

18. The majority of market news is not only useless, but also harmful to your financial health.

19. Professional investors have better information and faster computers than you do. You will never beat them short-term trading. Don’t even try.

20. The decline of trading costs is one of the worst things to happen to investors, as it made frequent trading possible. High transaction costs used to cause people to think hard before they acted.

21. Most IPOs will burn you. People with more information than you, want to sell. Think about that.

22. The phrase “double-dip recession” was mentioned 10.8 million times in 2010 and 2011, according to Google. It never came. There were virtually no mentions of “financial collapse” in 2006 and 2007. It did come.

23. The best investors in the world have more of an edge in psychology than in finance.

24. What markets do day to day is overwhelmingly driven by random chance. Ascribing explanations to short-term moves is like trying to explain lottery numbers.

25. If you have credit card debt and are thinking about investing in anything, stop. You will never beat 30% annual interest.

26. A large portion of share buybacks are just offsetting shares issued to management as compensation. Managers still tout the buybacks as “returning money to shareholders.”

27. Twelve years ago General Motors was on top of the world and Apple was laughed at. A similar shift will occur over the next decade, but no one knows to what companies.

28. Most would be better off if they stopped obsessing about Congress, the Federal Reserve, and the president and focused on their own financial mismanagement.

29. For many, a house is a large liability masquerading as a safe asset.

30. The most boring companies — toothpaste, food, bolts — can make some of the best long-term investments. The most innovative, some of the worst.

Shared by Ankur Rege