Value Investing

Safal Niveshak: Learn To Earn – The Art Of Investing

Learn To Earn – The Art Of Investing by Safal Niveshak, via Slide Share

A quick word of warning before we continue…

Be prepared to be challenged.

Because when this is over, I am going to ask you to do something… something that most others would find it tough to do.

But before that…

What We Don’t Learn At School…

History – Yes

Math – Yes

Home Economics – Yes

Investing – NO!

This is a glaring omission!

The status quo is dead!

The concept of “Study hard, get a job, work hard, enjoy life” is dead! I hope you know this.

The Greatest Financial Gift You Can Give to Your Children

Tell them they are not entitled to money or wealth.

Tell them debt is expensive. If they abuse it, it will destroy them.

Tell them about the ‘power of compounding’.

If you put 1 grain of rice on the 1st square of the Chessboard,and double the number of grains for the next square, and the next…

When you reach the 64th Square, you will need… 9,223,372,036,854,780,000 grains!

The Power of Compounding at Work…

Art Of Investing

You don’t have to be a genius to become a successful investor

Believe me! You don’t need to be a genius…

Underwald died while bungee jumping. He jumped to a height of 250 feet, using a 300 feet rope!

Being a genius makes your over-confident!

People with IQs in the top 2% of world population. During the 15-year period between 1986 and 2001, the US stock markets (S&P 500) generated average annual returns of 15.3%.

How much did Mensa’s investments earn? Just 2.5%!

That’s genius for you.

Myron Scholes and Robert C. Merton: These geniuses at LTCM hedge fund in the US made incorrect speculative bets, and lost US$4.6 billion in less than four months following the Russian financial crisis. The fund that had started in 1994, closed in early 2000. Genius!

Instead of focusing on becoming too smart,I urge you to focus on avoiding foolish behavior.

You Only Need 3 Things to Make Money from Investing: Brain + Time + Efforts

“Our main business is not to see what lies dimly at a distance, but to do what lies clearly at hand.” – Sir William Osler

Stop worrying about money, and start working to earn it!

If you want to become a Successful Investor… Remember these basic rules of Successful Investing…

Remember the Power of Compounding

Know what is a Stock, Piece of Paper? Share of Business?

Investing Isn’t Risky. Not Investing Is.

Like you can learn to swim, cross a road, and ride a bike… you can learn to invest.

Don’t catch up to what other investors are doing… but invest as if ‘you were yourself’.

Mind Your Emotions

Know who YOU are. Are YOU a Stock or a Bond?

You are a Stock if you…

Have little years of work ahead of you

Work in a volatile and unpredictable field (like stock markets)

You are a Bond if you…

Have a stable job

Have many years left to work

Total Wealth = Human Capital + Financial Capital

Speculation is Destructive. Avoid It.

Understand Risk.It comes from not knowing what you are doing.

See full slides below.