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A THREAD on insightful thoughts on saving and investing by The MF Guy ( @TheMFGuy1):
1/
Boring is exciting when it comes to investing.
1/
Boring is exciting when it comes to investing.
2/15
We live in a strange world where car insurance is compulsory, health and life insurance are not.
We live in a strange world where car insurance is compulsory, health and life insurance are not.
3/15
People invest in real estate and wait for years just to get possession, forget about exiting and booking profits.
Why are we so impatient with equities?
People invest in real estate and wait for years just to get possession, forget about exiting and booking profits.
Why are we so impatient with equities?
4/15
Gold has no intrinsic yield like stock dividends or bond interest, any profit must result from an accurate price forecast.
Therefore, gold should be considered as a trading game rather than investment. Just like other commodities and currencies.
Gold has no intrinsic yield like stock dividends or bond interest, any profit must result from an accurate price forecast.
Therefore, gold should be considered as a trading game rather than investment. Just like other commodities and currencies.
5/15
If you are boasting about ur skills for making 5% returns in one day, then you don't know the role of luck in investing.
You are still immature.
If you are boasting about ur skills for making 5% returns in one day, then you don't know the role of luck in investing.
You are still immature.
6/15
The need for an emergency fund had never been so important. It is ok if we don't earn returns on every rupee we have. It earns its value during such times.
The need for an emergency fund had never been so important. It is ok if we don't earn returns on every rupee we have. It earns its value during such times.
7/15
Most expenses today are due to peer pressure. We live a lifestyle not of our own, but friends and neighbours.
Back then chatting with friends at home was an acceptable entertainment, today it has to be at some expensive restobar.
Most expenses today are due to peer pressure. We live a lifestyle not of our own, but friends and neighbours.
Back then chatting with friends at home was an acceptable entertainment, today it has to be at some expensive restobar.
8/15
It takes only 10% fall in the market to make a long term investor a short term trader and a short term trader into a long term investor.
It takes only 10% fall in the market to make a long term investor a short term trader and a short term trader into a long term investor.
9/15
Investing vs speculating...
When you track price of your stock you are speculating.
When you track its business and earnings growth you are investing.
Investing vs speculating...
When you track price of your stock you are speculating.
When you track its business and earnings growth you are investing.
10/15
In last 10 years, real estate returns in most cities are less than fixed deposits. But people don't realise it as they count it on absolute basis. Convert it into annual returns and they will get a shock of their life.
In last 10 years, real estate returns in most cities are less than fixed deposits. But people don't realise it as they count it on absolute basis. Convert it into annual returns and they will get a shock of their life.
11/15
So many years we spend in school to learn maths and science.
How about investing? How many years do we spend?
So many years we spend in school to learn maths and science.
How about investing? How many years do we spend?
12/15
When returns are negative we blame it on market, when it's positive we credit it to our skills.
When returns are negative we blame it on market, when it's positive we credit it to our skills.
13/15
Periods when you don't gain returns, you gain experience.
Periods when you don't gain returns, you gain experience.
14/15
At 15% CAGR, from 15th year onwards, you make more than your initial principal every year. This is the power of patience, also known as compounding. Magic it is!
At 15% CAGR, from 15th year onwards, you make more than your initial principal every year. This is the power of patience, also known as compounding. Magic it is!
15/15
In investing...
Don't be Anil Ambani - Over diversified, lack of attention to details and playing with the trend.
Be like Mukesh Ambani - Patient, focused and passion to make it big.
The tale of two brothers teach us a lot.
In investing...
Don't be Anil Ambani - Over diversified, lack of attention to details and playing with the trend.
Be like Mukesh Ambani - Patient, focused and passion to make it big.
The tale of two brothers teach us a lot.
