Smart ways to invest and attain early financial freedom

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

This is the most common query that I get from mid/senior professionals. Here is a framework that you can use to get your answer. The key approach to answer this question is to focus on four parameters – Your financial assets (net of all your loans) as of now, Your cash flows coming from your financial assets as of now, Your annualised expenses and The large future expenses that you need to budget for (like wedding, foreign education etc). Once you have retired, assume that there is no salary and your annual expenses and large future expenses have to be met from wealth created by your financial assets. Assuming you have two k

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