Smart ways to invest and attain early financial freedom

Before I share my views, here is my recent stock ROI Quite a few readers are having these questions in their mind - so I thought to share it as an FAQ Will the markets go up from here or will it go down? In the near term – I am not sure of where the markets will go. But if you take the next 3-5 years – I believe that the markets will go up. Indians are now exposed to internet and TV and are aspiring for more and demanding a better life. The politicians understand this and know that they need to perform to keep their jobs. The govt is pushing difficult reforms and a developement agenda just to stay in power. This is a fundamental change and will shape the pol

Every now and then I meet people who tell me with a sense of pride that “I have never taken any loans and never will.” And on the other side of the spectrum, there are people in IT industry who have taken such large loans (for buying a premium apartment) that the EMI load is creating tensions in home, now that most IT companies are slowly downsizing. So here are my thoughts on taking loans. Loan by itself is not a good or bad loan. It becomes a good or bad loan based on: 1. Your ability to pay the EMI’s after taking the loans. A good loan is one where you can repay it without too much of liquidity issues. Your repayment capacity defines whether a loan is a good or

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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.

2016 was a year of black swans – Brexit, Demonetisation and Trump – all these changed the investment landscape dramatically. Not many would have made decent returns in their overall asset base in 2016 – at least I did not. Does 2017 look better? Well the answer is a NO. As of now, the risks are still there. Modi is still talking tough. Trump is expected to do the unexpected in 2017 (and beyond). And we still have to contend with a Chinese devaluation and Duetsche bank problems. In such a situation, I would recommend conservatism. Stay focussed on keeping your assets safe – do not lose money and live to fight another day. In India, there are chances of further interest rate reduction – that me