More on this book
Kindle Notes & Highlights
I can resist everything except temptation - OSCAR WILDE
“If you spend money on things you don’t need, you will soon sell things you do need”
We shop to feel good about ourselves and later feel guilty about overspending, and then again shop more, once again to pacify ourselves. (Deny it all if you wish but you do it too). It’s a vicious circle.
Don’t save what’s left after spending, spend what’s left after saving -WARREN BUFFET
People like Predictability, but being prepared is the key to be successful.
The greatest enemy of a good plan is the dream of a perfect one!
The quickest way to double your money is to fold it in half and put it in your back pocket. - WILL ROGERS
Education is not the learning of facts; it’s rather the training of the mind to think
Investing should be like watching paint dry or watching grass grow. If you want excitement, go to Las Vegas. - PAUL SAMEULSON
“The way you invest should be based on whether you want to eat well or sleep well.”
In the middle of difficulty, lies opportunity - ALBERT EINSTEIN
If you spend on things you don’t need, you will soon need to sell things you do need! -WARREN BUFFETT
What you save today will save you tomorrow!
You only live once, but if you do it right, once is enough. - MAC WEST
we have one thing that is probably something that can save us or be the end of us: Our Choices.
Financial planning isn’t rocket science. Actually nothing other than rocket science is rocket science.
Beware of false knowlecge; it is more dangerous than ignorance - GEORGE BERNARD SHAW
Three qualities of a successful investor according to me would be: discipline, patience and resilience.
Ratios like Standard Deviation for volatility and Beta are used to evaluate correlation and sensitivity of a fund with a particular index.
choose a scheme which has a stable fund manager.
It is wise not to put all your eggs in the same basket.
Understand that while investing will not be a walk in the park, it isn’t supposed to be a roller coaster ride too.
Don’t watch your portfolios regularly, watch it once in six months, make adjustments according to how your life has changed (if it has) and then re-adjust/ rebalance accordingly.
While you can look at your portfolio daily, the question is whether you should.
More the time you spend looking at your portfolio, the more you will be tempted to tamper with it.
View your portfolio once a quarter, review it once a year.
You must look at the fund mandate, type of scheme, risks associated, rolling returns, beta, Sharpe, the highest returns since inception in any year, lowest it has given in any year too.
“History, despite its wrenching pain, cannot be unlived, but if faced with courage, need not be lived again.”- Maya Angelou
If we look at the Tulip mania, the crux of which was two things: One, prices will never fall, only rise and how people sold everything to invest in the option that looked like it will make them crorepatis overnight.
Financial independence means not having to worry about whether your job will be there tomorrow or what would happen in case you fell sick or worse, what would happen to your family in case of your death.
When we plan retirement, we have longer life spans during retirement than the number of working years. This means we need to save more, invest better.
Isaac Newton: In 1720, he made huge losses and almost went broke- in the South Sea bubble and famously said: “I can calculate the movement of stars but not the madness of men.”
Albert Einstein: He invested a lot of money in stocks and lost most of it in a crash in 1929.
Some mistakes are best made by others: You learn from their mistakes:
In case you are looking at reading some fantastic books, here are a few that I would recommend: Black Swan by Nassim Nicholas Taleb, Your Money and Your brain by Jason Zweig, A Wealth of Common Sense by Ben Carlson, Misbehaving by Richard Thaler.
