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.

Brexit was not expected – most people assumed that the British will vote to stay in the EU and hence when the results came out yesterday, there was shock and surprise. The dollar strengthened, the pound weakened and stock markets as usual over reacted and fell globally and gold rose by about 4-5%. But these are all reactions from a market that is full of traders who try to predict what will happen in short term and try to make money on a daily basis. In the long run, I believe that not much will change. Brexit does not mean that UK will stop being part of the global trade and that the British will close down their country and will become an Albania. Life will go on in the UK and over time they will untangle the mess and will live happily ever after. Having said that, one still needs to look at reasons for Brexit and see how it will impact us in the long run. Globally the gap between the rich and poor has increased in the last 50 years and with the tremendous

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