Smart ways to invest and attain early financial freedom

Mar

8

2017

Here is an IPO that represents a solid company – I am a customer of DMart and I love the prices that it offers (and hate the crowds at times – but then we go on weekdays daytime). In my MBA classes – I take the example of DMart in my strategy classes to show how one can be smart and make money in an industry that has very low profitability. Then there is the founder – Mr Ramesh Damani – he has built such a solid reputation of a nice soft spoken savvy/value investor that it is hard not to like him and respect him and be a partner to him in this company. And this IPO is surely a block buster IPO in the sense that it would be over-subscribed many-many times –after all which analyst will say things against M

Warren Buffett is the greatest investor of all time. His decisions about buying shares and companies have beaten the stock market year after year and made him one of the richest person in the world. As far as I know, there are only two documentaries on Warren Buffet – where he has collaborated and helped them during the production – one from BBC a few years back and one from HBO that was released ten days back. The one released by HBO was keenly awaited by his fans for more than six months. This documentary traces his life from his early childhood days, to his college days, his marriage and his kids and the way he started his investing journey and the way he has decided to give away most of his $73 Billion to charity. The documentary has some very rare family photos and videos. It has focused on him as a person and his humble lifestyle and clearly shows what an independent thinker he is. But the documentary does not share how he identifies his investments.

Meeting two such people in the same day is not normal – but I guess I was lucky to have had these meetings on the same day. Let me start with the story of the person with 98 flats – let us call him Ravi (that is not his real name). He is a simple soft spoken guy. Met him at a friend’s place. His father had bought four acres of agricultural land in the outskirts of Bangalore in 1991 at a cost of Rs 35,000 per acre (this was around my annual salary after my MBA in 1989 – so this investment was equivalent of my four year’s income then and I was in Bangalore in that period – so I could have also done the same if I had the foresight then). This land was bought purely for agricultural purposes and the family did farming in the land. Around 1995, the area where this land was situated became Electronic city. The govt acquired neighboring lands and allotted it to companies wanting to establish factories in that area- a few software companies too bought land and am

Happy to share that Jatin Khemani is being interviewed by one of India's big stock market guru - Mr. Ramesh Damani and is being featured in the CNBC's "Wizard of Dalal Street" program this week. Jatin Khemani is one of my students and has been mentored by me since 2011, both at a personal and professional level. He founded Stalwart Advisors and I have personally learnt a lot by discussing stock ideas with him - he is one of the two companies recommended by me in my equity page. Happy to share this

My readers would know that I had sold off all my stocks in Feb 2016 and entered gold through the ETF route – this was done as I feared a market crash due to China. My forecast was wrong (thankfully) and things improved from March onwards globally and there was a semblance of stability and small growth since then. Big investors like Soros and Druckenmiller had also moved to gold and predicted a China induced crash at that time. In the past 9 months- I have been sitting and seeing markets go up and select stocks zoom up and the stocks that I know well and had invested (and sold) had all zoomed up and were not in a price range to re-enter. My investments in gold in the meantime did OK - thanks to Brexit and the general volatility, I did appx 10% in the past 10 months. But I have been waiting in the side-lines to enter my favourite stocks for the past two months. The Trump win has given the opportunity that I have been waiting for. Thanks to Trump, global money i