Smart ways to invest and attain early financial freedom

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

Dear Friends - here are two good articles (here and here) in Capital mind that I would like to share with you. Incidentally Capital mind is a great source of unbiased data based analysis for those who do direct stocks - I subscribe to this and it has surely helped me with better decisions in the past two years.

Friends - I read a lot of blogs daily and I would like to share this story that I liked today. But before that - The easiest and surest way to build wealth is to have a mind set of investing for long periods - typically ten years and above. Out of experience I can say that it is very easy to make 20% plus ROI compounded in India, if you look at a ten year time frame. As the time frame goes down to 2-3 years, it becomes more and more difficult to make 20% ROI consistently. Also, the power of compounding kicks in over longer periods and that truly builds wealth ( as you will read in the story below). Let me give you an example - here is the HDFC Bank share price for the last ten years ( I know, you may not be investing through shares - but this is just an example).The light blue line is the HDFC Bank share price and the dark blue line is the BSE Sensex. You can click on the image to enlarge it.

Friends - I do a lot of reading daily and I would like to share some of good content, that I think will add value and over time make you richer. Peter Lynch is a legendary investor who retired in the 90's. For over 20 years, he managed Fidelity's Magellan fund in the US, which gave around 29% ROI per annum under his stewardship and was the best performing fund worldwide in that era. In his book "One up on Wall Street", he shares his stock picking style. The book is very easy to read and gives one a very good idea of how the mutual fund industry works and how one should identify good companies. Highly recommended book for those who invest in stocks and mutual funds.