Smart ways to invest and attain early financial freedom

Let me start by wishing all my readers a Very Happy Diwali. This blog was due for more than two weeks – but as the college had exams and then a 10 day break, this session on Investing through Equity was dealyed. As we all know, different people have different views on investing through equities. And my guess is that everyone is sometimes right and sometimes wrong – there is no one right way to make money by investing in equities.   
After a one month break, I am back. Not that I was not watching the markets or the economic news –our smart phones ensure that we are always connected.  But I was not actively investing as I was busy elsewhere. Warren Buffet had famously said – “Be fearful when others are greedy. Be greedy when others are fearful.” This is the time when everyone is fearful –there is more than normal amount of bad news –my prediction in December for 2012 was a tad optimistic – I did not predict that the Indian GDP growth would fall so much so soon – I also did not p
Based on requests from friends who follow my stock advice, I have decided to share my stock trades as and when I do it.  I currently have invested in 37 companies since last November. On 1st Nov 2011, the sensex was 17480 and today it is around 17200 – the sensex has not moved much but I have an overall absolute return of 10% plus on my investments. As most of you know, I watch the market closely and have a list of appx. 150 good companies that I want to enter when their stock price is low. I have been able to find an entry price for 37 of these companies and I believe that these companies will do well when the Indian markets start going up in the next 2/3 years.
Three months back, Indian markets were one of the worst performing ones globally –and today we are one of the best performers. The market has gone up by 15% in the past two months and many people feel that they missed the opportunity to profit from the rally in Jan / Feb 2012.This increase in market valua
In October 2011 blog, I had recommended 5 stocks at the prices prevailing then -  all the five stocks (SBI, BHEL, Bajaj Auto, Esab Industries and Maharashtra seamless) are still hovering in the same range today and are still worth buying.The methodology used for stock valuation is given in detail in my Sept 2010 blog - you can go back and look at it, if you wish. It is based on based on the historical earning per share growth rate (EPS CAGR) and the price earnings multiples (PE) for the company (over the past ten years) – using this past data, we can forecast the future stock prices beyond five years with a very high degree of certainty - especially for select companies that have an identifiable durable competitive advantage that cannot go away easily in the future decade.