Investing Facts – Part II

A person was arguing with me that he do not want to start the SIP as the markets are at all-time high. He feels it there is too blogmuch risk involved. Later on I explained him the logic of SIP that he is not investing only once or when the markets are high, it’s a long term commitment not a month’s affair. Some of us are so taboo that they still think investing in market is gambling, buying a lottery ticket or a horse race.

Please understand the power of compounding; equities have outperformed every asset class in the long run if done with dedications and discipline.

You have to burn your fingers to learn the skill, the same way when children don’t understand and they touch the hot stove unless they realise it’s hot  and skills needed to operate it.

  • Change Your Life with One Calculation the eighth wonder of the world goes to… the formula for compound interest! It’s your money x (1 + i) ^n.
  • Trade Wisdom for Foolishness: When you’re plying your trade in the investment world,calling yourself Foolish (note the capital “F”) is normally inadvisable. As you’ve probably surmised, we think quite the opposite.
  •  Treat Every Rupee as an Investment
  • Open and Fund Your Accounts
  • Avoid the Biggest Mistake Investors Make: Fools are investors, not speculators. We’re buy-to-hold, business-focused investors with a long time horizon
  • Discover Great Businesses: Stocks aren’t pieces of paper, but stakes in a living, breathing business. Look for well-managed companies.
  • Buy Your First Stock: You’ve paid off your credit cards, open and funded your brokerage account, and done your research. It’s business time.
  • Cover you’re Assets: Don’t forget the rules for asset allocation: Don’t invest money that you’ll need in the next year.
  • Invest Like the Masters: Growth guru Peter Lynch is a legend around the halls of Fool HQ. Quotes of his adorn our walls — “Never invest in any idea you can’t illustrate with a crayon” and “Although it is easy to forget sometimes, a share is not a lottery ticket … its part-ownership of a business.”
  • Don’t Sell Too Soon: Selling a stock is just as big a decision as buying.
  •  Retire in Style: Retiring in style rests on making the most of tax-advantaged savings.
  • Pay It Forward: Foolishness doesn’t stop with you, friend. Pass on the good money-saving.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s