Smart ways to invest and attain early financial freedom

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.

  Here is a nice post that I would like share - agree with it fully. May be this list is not complete - but all fourteen are habits of people who accumulate wealth.

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.

  I am sharing some “very less known” quotes from Warren Buffet. Hope you enjoy these quotes.   When I was sixteen, I had just two things on my mind -girls and cars. I wasn’t very good with girls. So I thought about cars. I thought about girls too, but I had more luck with cars. Let’s say that when I turned sixteen, a genie had appeared to me. And that genie said, “Warren, I am going to give you the car of your choice. It will be here tomorrow with a big bow tied on it. Brand new. And it’s all yours.” Having heard all the genie stories, I would say, “What’s the catch?” An