Coffee Can Investing: the low risk road to stupendous wealth

by Saurabh Mukherjea

‘Risk comes from not knowing what you are doing.’ —Warren Buffett1

It is critical for an investor to nail down objectives and bake them into a financial plan. The exercise helps match the investor’s financial goals with the kind of risk that needs to be taken in the portfolio.

Long-term competitive advantage in a stable industry is what we seek in a business’.

earnings is the biggest driver of stock market returns in the long run.

‘Darwinism in the Marketplace’, which implies that in any environment some creatures are going to be more successful in adapting than others, and those adaptable creatures are the ones that will thrive and prosper.

The CCPs are full of companies that are the Rahul Dravids of the business world—rare, determined and constantly seeking to improve the edge or the advantage they enjoy vis-à-vis their competitors.

Create a financial plan which helps you deliver on your life goals. Unless you do so, you will be shooting in the dark.