Coming soon the summary on the book The common stocks and uncommon profits book summary by Philip A Fisher!
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Jul 14, 2021
Mar 21, 2021
ReWork By Jason Fried!
Get the book at Amazon : https://amzn.to/3cc7Lzr
Rework shows you that you need less than you think to start a business – way less – by explaining why plans are actually harmful, how productivity isn't a result from working long hours and why hiring and seeking investors should be your absolute last resort.
Author:
Jason Fried is the co-founder and president of 37signals , a Chicago-based company that builds web-based productivity tools that, in their words, "do less than the competition -- intentionally." 37signals' simple but powerful collaboration tools include Basecamp, Highrise, Backpack, Campfire, Ta-da List, and Writeboard .
If you dream to open a startup or a business of your
own, you must read this book, written by Jason Fried who owns the company named
Basecamp, which also one day came up like an startup idea and now making a
million dollar business.
Mark Cuban, the well-known American investor, said
about the book that if he has to choose between, two people and one of them has
done an MBA and the other has read the Rework book, he will choose the one who
read the Rework book.
So you must have understood the importance of this book
The chapters of this book summary are as follows:
1) Scratch your own itch: (Solve your problem
yourself)
First look at what you need to problem. Then find the
solution to that problem.
So the same solution can become your product.
This is what the author has called scratch your
itch. It means if you have a problem and to wipe it out, the solution occurred.
Let's understand this from two example:
Nike – We all know about Nike, the famous shoe company. But the story of his started when the America's athletics coach Bill Bowerman was looking for shoes that are extremely strong but extremely, light weight too. They found a lot but did not find such shoes.
So he designed such shoes himself using leather and
iron at his workshop.
In this way, they solve their own problem. These shoes greatly increased the running speed of athletes. Thus, a company like Nike started, which later spread throughout the world.
Bill's problem was the absence of good running shoes, and he took the solution, Which became their product later
Otis – All of you have never used an elevator in
life, if it was not invented by someone.
It was invented by Elisha Otis. So the elevator is
also called Otis.
In fact, they had to climb a lot of stairs every
day. From which they were disturbed.
To overcome this problem, he thought of building
lift.
Today, the whole world uses this product that they
have ever made for itself, So you need to look for, what are the difficulty or
problems and find the solution for that, may be tomorrow your product is also
all over the world.
2) Start a Business not Startup
The use of the word startup by the youth of today
has become like a fashion.
See what you'll say – man I want to put up startup.
When people put up startups, they buy expensive
equipment in the beginning of the business. The cost on the advertisement for the product starts to waste money.
They may raise many funds from the investors and by taking
more funding, they have to work as per the investors wishes.
Their own vision is lost. So the authors say that
startup entrepreneurs and fancy words like fancy words are far from confused.
But look at yourself as a businessman, You don't
need a degree or a suit – boot.
Start your business directly without lying in the high of what you have to use. Then gradually go to scale up the business.
Mar 8, 2021
The 48 Laws of Power!
The 48 Laws of Power by Robert Greene
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Law 1:
Never outshine the master
Make your masters
appear more brilliant than they are and you will attain the heights of
power
When it comes to
power, outshining the master is perhaps the worst mistake of all.
Never take your
position for granted and never let any favors you receive go to your head.
Law 2: Never
put too much trust in friends, learn how to use enemies
But hire a
former enemy and he will be more loyal than a friend, because he has more to
prove. In fact, you have more to fear from friends than from enemies. If you
have no enemies, find a way to make them
Since honesty
rarely strengthens friendship, you may never know how a friend truly
feels. Friends will say that they love your poetry, adore your music, envy
your taste in clothes— maybe they mean it, often they do not.
The key to power,
then, is the ability to judge who is best able to further your interests
in all situations. Keep friends for friendship, but work with the skilled and
competent.
Law 3: Conceal Your
Intentions
Use decoyed objects
and desires and red herrings to throw people off the scent
Hide your
intentions not by closing up (with the risk of appearing secretive, and making
people suspicious) but by talking endlessly about your desires and goals—
just not your real ones. You will kill three birds with one stone: You appear
friendly, open, and trusting; you conceal your intentions; and you send your
rivals on time-consuming wild-goose chases.
Use smoke screens
to disguise your actions. This derives from a simple truth: people can only
focus on one thing at a time. It is really too difficult for them to imagine
that the bland and harmless person they are dealing with is simultaneously
setting up something else
As Kierkegaard
wrote, “The world wants to be deceived.”
Law 4: Always say
less than necessary
One oft-told tale
about Kissinger… involved a report that Winston Lord had worked on for days.
After giving it to Kissinger, he got it back with the notation, “Is this the
best you can do?” Lord rewrote and polished and finally resubmitted it; back it
came with the same curt question. After redrafting it one more time— and once
again getting the same question from Kissinger-Lord snapped, “Damn it, yes,
it’s the best I can do. ” To which Kissinger replied: “Fine, then I guess I’ll
read it this time. ”
Persons who cannot
control his words shows that he cannot control himself, and is unworthy of
respect. But the human tongue is a beast that few can master. It strains
constantly to break out of its cage, and if it is not tamed, it will run wild
and cause you grief. Power cannot accrue to those who squander their
treasure of words.
Power is in many
ways a game of appearances, and when you say less than necessary, you
inevitably appear greater and more powerful than you are.
Learn the lesson:
Once the words are out, you cannot take them back. Keep them under
control. Be particularly careful with sarcasm: The momentary satisfaction
you gain with your biting words will be outweighed by the price you pay.
Law 5: So much
depends on reputation, guard it with your life
Always be alert to
potential attacks and thwart them before they happen. Meanwhile, learn to
destroy your enemies by opening holes in their own reputations. Then stand
aside and let public opinion hang them.
Doubt is a powerful
weapon: Once you let it out of the bag with insidious rumors, your opponents
are in a horrible dilemma.
Once you have a
solid base of respect, ridiculing your opponent both puts him on the
defensive and draws more attention to you, enhancing your own reputation.
Law 6: Court
attention at all costs
Surround your name
with the sensational and the scandalous.
Better to be
slandered and attacked than ignored.
Every crowd has a
silver lining.
At the start of
your career, you must attach your name and reputation to a quality, an image,
that sets you apart from other people.
Create an air of
mystery.
Remember: Most
people are upfront, can be read like an open book, take little care to control
their words or image, and are hopelessly predictable. By simply holding
back, keeping silent, occasionally uttering ambiguous phrases, deliberately
appearing inconsistent, and acting odd in the subtlest of ways, you will
emanate an aura of mystery. The people around you will then magnify that
aura by constantly trying to interpret you
Do something that
cannot be easily explained or interpreted
Law 7: Get
others to do the work for you, but always take the credit
No notes.
Law 8: Make other
people come to you, use bait if necessary
For negotiations or
meetings, it is always wise to lure others into your territory, or the
territory of your choice. You have your bearings, while they see nothing
familiar and are subtly placed on the defensive.
Law 9: Win
through your actions, never through argument
No notes.
Law 10: Infection: Avoid
the unhappy or the unlucky
When you suspect
you are in the presence of an infector, don’t argue, don’t try to help, don’t
pass the person on to your friends, or you will become enmeshed. Flee the
infector’s presence or suffer the consequences.
Law 11: Learn to keep
people dependent on you
No notes.
Law 12: Use
selective honesty and generosity to disarm your victim
No notes.
Law 13: When asking
for help, appeal to people’s self interest, never their mercy or gratitude
No notes.
Law 14: Pose as a
friend, work as a spy
No notes.
Law 15: Crush your
enemy totally
No notes.
Law 16: Use absence
to increase strength and honor
The more you are
seen and heard from, the more common you appear. If you are already established
in a group, temporary withdrawal from it will make you more talked about, even
more admired. You must learn when to leave. Create value through scarcity.
At the start of an
affair, you need to heighten your presence in the eyes of the other. If you
absent yourself too early, you may be forgotten. But once your lover’s
emotions are engaged, and the feeling of love has crystallized, absence
inflames and excites. Giving no reason for your absence excites even more.
Law 17: Keep others
in suspended terror, cultivate an air of unpredictability
Too much
unpredictability will be seen as a sign of indecisiveness, or even of some more
serious psychic problem. Patterns are powerful, and you can terrify people by
disrupting them. Such power should only be used judiciously.
Law 18: Do not
build a fortress to protect yourself, isolation is dangerous
No notes.
Law 19: Know who
you’re dealing with, do not offend the wrong person
No notes.
Law 20: Do not
commit to anyone
Do not commit to
anyone, but be courted by all.
When you hold
yourself back, you incur not anger, but a kind of respect. You instantly seem
powerful because you make yourself ungraspable, rather than succumbing to the
group, or to the relationship, as most people do.
People who rush to
the support of others tend to gain a little respect in the process, for their
help is so easily obtained, while those who stand back find themselves besieged
with supplicants.
Do not commit to
anyone, stay above the fray.
Remember: You have
only so much energy and so much time. Every moment wasted on the affairs of
others subtracts from your strength.
Law 21: Play a
sucker to catch a sucker, seem dumber than your mark
Given how important
the idea of intelligence is most people’s vanity, it is critical never inadvertent to insult or impugn a person’s brain power.
Law 22: Use the
surrender tactic: to transform weakness into power
People trying to
make a show of their authority are easily deceived by the surrender tactic.
It is always our first
instinct to react, to meet aggression with some other kind of aggression. But
the next time someone pushes you and you find yourself starting to react, try
this: Do not resist or fight back, but yield, turn the other cheek, bend.
If you surrender
instead, you have an opportunity to coil around your enemy and strike with your
fangs from close up.
Law 23: Concentrate
your forces
Intensity defeats
extensity every time.
Law 24: Play the
perfect courtier
The laws of court
politics:
Avoid ostentationPractice nonchalance frugal with flatteryArrange to be
noticedAlter your style and language according to the person you are dealing
with never be the bearer of bad newsNever affect friendliness and intimacy with
your masterNever criticize those above you directly be frugal in asking those
above you for favorsNever joke about appearances of tastes do not be the court
cynicBe self observantMaster your emotionsFit the spirits of the timesBe the
source of pleasure
Law 25: Re-Create
Yourself
Be the master of
your own image rather than letting others define it for you.
The world wants to
assign you a role in life. And once you accept that role you are doomed.
Remake yourself
into a character of power. Working on yourself like clay should be one of your
greatest and most pleasurable life tasks.
The first step in
the process of self-creation is self-consciousness— being aware of yourself as
an actor and taking control of your appearance and emotions.
The second step in
the process of self-creation is a variation on the George Sand strategy: the
creation of a memorable character, one that compels attention, that stands out
above the other players on the stage.
Law 26: Keep your
hands clean
Conceal your
mistakes, have a scapegoat around to blame.
Make use of the
cats paw.
Law 27: Play on
people’s need to believe to create a cult like following
Five rules of cult
making
Keep it vague, keep
it simpleEmphasize the visual and sensational over the intellectualBorrow the
forms of organized religion to structure the groupDisguise your source of
incomeSet up an us vs them dynamic
Law 28: Enter
action with boldness
The bolder lie the
better.
Lions circle the
hesitant prey.
Boldness strikes
fear, fear creates authority.
Going halfway with
half a heart digs a deeper grave.
Hesitation creates
gaps, boldness obliterates them.
Audacity separates
you from the herd.
When you are as
small and obscure as David was, you must find a Goliath to attack. The larger
the target, the more attention you gain.
Law 29: Plan all
the way to the end
No notes.
Law 30: Make
your accomplishments seem effortless
No notes.
Law 31: Control the
options, get others to play with the cards you deal
You give people a
sense of how things will fall apart without you, and you offer them a “choice”:
I stay away and you suffer the consequences, or I return under circumstances
that I dictate.
Color the choices,
propose three or four choices of action for each situation, and would present
them in such a way that the one he preferred always seemed the best solution
compared to the others.
Force the resister,
Push them to “choose” what you want them to do by appearing to advocate the
opposite.
Alter the playing
field.
The shrinking
options: A variation on this technique is to raise the price every time
the buyer hesitates and another day goes by. This is an excellent negotiating
ploy to use on the chronically indecisive, who will fall for the idea that they
are getting a better deal today than if they wait till tomorrow.
The weak man on the
precipice: This tactic is similar to “Color the Choices,” but with the
weak you have to be more aggressive. Work on their emotions— use fear and
terror to propel them into action. Try reason and they will always find a way
to procrastinate.
Brothers in Crime: You
attract your victims to some criminal scheme, creating a bond of blood and
guilt between you.
The horns of a
dilemma: The lawyer leads the witnesses to decide between two possible
explanations of an event, both of which poke a hole in their story. They have
to answer the lawyer’s questions, but whatever they say they hurt themselves.
The key to this move is to strike quickly: Deny the victim the time to
think of an escape. As they wriggle between the horns of the dilemma, they dig
their own grave.
Law 32: Play to
people’s fantasies
People rarely
believe that their problems arise from their own misdeeds and stupidity.
Someone or something out there is to blame— the other, the world, the gods— and
so salvation comes from the outside as well.
Law 33: Discover
each man’s thumbscrew
Everyone has a
weakness, a gap in the castle wall. That weakness is usually an
insecurity, an uncontrollable emotion or need; it can also be a small secret
pleasure. Either way, once found, it is a thumbscrew you can turn to your
advantage.
Finding the
thumbscrews
Pay attention to gestures
and unconscious signalsFind the helpless child, look to their childhoodLook for
contrasts, an overt trait often reveals its oppositeFind the weak link,Fill
their emotional voidFeed on their uncontrollable emotion
Always look for
passions and obsessions that cannot be controlled. What people cannot control,
you can control for them.
Law 34: Be royal in
your own fashion. Act like a king to be treated like one
No notes.
Law 35: Master the
art of timing
No notes.
Law 36: Disdain
things you cannot have, ignoring them is the best revenge
Remember: You
choose to let things bother you. You can just as easily choose not to notice
the irritating offender, to consider the matter trivial and unworthy of your
interest. That is the powerful move.
Desire often creates
paradoxical effects: The more you want something, the more you chase after
it, the more it eludes you. The more interest you show, the more you repel the
object of your desire. This is because your interest is too strong— it makes
people awkward, even fearful. Uncontrollable desire makes you seem weak,
unworthy, pathetic.
Law 37: Create
compelling spectacles
No notes.
Law 38: Think as
you like but behave like others
If Machiavelli had
had a prince for disciple, the first thing he would have recommended him to do
would have been to write a book against Machiavellism.
Law 39: Stir
up waters to catch fish
Anger and emotion
are strategically counterproductive. You must always stay calm and objective.
But if you can make your enemies angry while staying calm yourself, you gain a
decided advantage.
Law 40: Despise the
free lunch
The worth of money
is not in its possession, but in its use.
Law 41: Avoid
stepping into a great man’s shoes
No notes.
Law 42: Strike the
shepherd and the sheep will scatter
Within any group,
trouble can most often be traced to a single source, the unhappy, chronically
dissatisfied one who will always stir up dissension and infect the group with
his or her ill ease. Before you know what hit you the dissatisfaction spreads.
Act before it becomes impossible to disentangle
Once you recognize
who the stirrer is, pointing it out to other people will accomplish a great
deal.
43: Work on the
hearts and minds of others
Remember: The
key to persuasion is softening people up and breaking them down, gently. Seduce
them with a two-pronged approach: Work on their emotions and play on their
intellectual weaknesses.
44: Disarm and
infuriate with the mirror effect
When you mirror
your enemies, doing exactly as they do, they cannot figure out your strategy.
The Mirror Effect mocks and humiliates them, making them overreact. By
holding up a mirror to their psyches, you seduce them with the illusion that
you share their values; by holding up a mirror to their actions, you teach them
a lesson.
45: Preach the need
to change, but never reform too much at once
If change is
necessary, make it feel like a gentle improvement on the past.
Even while people
understand the need for change, knowing how important it is for institutions
and individuals to be occasionally renewed, they are also irritated and upset
by changes that affect them personally.
46: Never appear
too perfect
Envy creates silent
enemies. It is smart to occasionally display defects, and admit to
harmless vices, in order to deflect envy and appear more human and approachable.
Do not try to help
or do favors for those who envy you; they will think you are condescending to
them.
47: Do not go past
the mark you aimed for. In victory, know when to stop
No notes.
48: Assume
formlessness
By taking a shape,
by having a visible plan, you open yourself to attack. Instead of taking a
form for your enemy to grasp, keep yourself adaptable and on the move. Accept
the fact that nothing is certain and no law is fixed. The best way to protect
yourself is to be as fluid and formless as water; never bet on stability
or lasting order. Everything changes.
Feb 28, 2021
The falcon method on investing books by David Solyomi
Coming Soon..............The falcon method on investing books by David Solyomi
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The FALCON Method advocates a precise and
unemotional investment strategy which focuses on rigorous company evaluation
and a buy and hold philosophy. Its well-structured process focuses on long-term
dividend payers and applies a strict set of filters to weed out dodgy deals and
subpar investments. By following the FALCON Method’s steps and using its
recommended financial indicators, average traders can give themselves the best
possible chance for growing their wealth and building a passive income.
Feb 23, 2021
The Unshakeable by Tony Robbins!
Coming soon the summary on the another book regarding how to earn millions using the common practices and power of compounding in stock market is explained in the book The Unshakeable by Tony Robbins!
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Feb 16, 2021
The Power of Atomic Habits by James Clear!
Go to the link to download the book https://amzn.to/3diHwIw
Sometimes we put a whole Life into making a good habit and
then one day, by a small mistake, that habit turns into a second. Why does this
happen? In fact, we often assume that great effort is essential for great
success. It is not clearly wrong, but sometimes even small attempts bring
results better than efforts. James Clear's book Atomic Habits Book tells us
about the same habits.
1.Habits are the compound interest of self-improvement.
The
same way that money multiplies through compound interest, the effects of your
habits multiply as you repeat them.
The effects of small habits compound over time.
Every day that 1% better than you make improvement to your
habit decide the future.
How much money you will have in your future will be decided
on how much you save and invest.
Similarly, how much knowledge you have depends on how many
books you read. What will be your weight is depended on your everyday eating
habits and physical activities.
They seem to make little difference on any given day and yet
the impact they deliver over the months and years can be enormous. A slight
change in your daily habits can guide your life to a very different
destination.
Making a choice that is 1% better or 1% worse seems
insignificant in the moment, but over a lifetime these choices determine the
difference between who you are and who you could be.
2. Your identity is made up of your habits:
Have you ever wondered why it feels so difficult to change
any habits?
Behaviour change is a big thing, no matter the behaviour,
and it’s almost never possible to take all of it on at once.
We have to start small day by day to form a new habit, and
with particular, measurable actions.
Each specific action is one forkful of behaviour change, and
a set of those actions engaged over time results in cumulative change. To
accompany those cumulative actions, we need specific goals, which behaviour
change research suggests are essential to success, because we need performance
targets to measure ourselves against. But those, too, should be realistic and
specific.
There are three main reasons for making changes.
Now think for yourself which of the following should be
focus?
If you think only of outcome, you will get bored. So try to
make change a part of your identity.
For example, if you want to get used to reading newspapers
every day, start getting headlines short. Then discuss them with those who know
you. This will make people recognize you as a knowledgeable person of all
headlines. And reading newspapers every day will become your habit
3. Four easy ways to make good habits.
Whenever you want to change your habit, ask yourself these four questions.
- Start with Small Adjustments. ...
- Be Positive. ...
- Once you make the Decision, Commit to it. ...
- Identify All Your Triggers and Obstacles. ...
- Take Time to think about what is holding you back. ...
- Create a Plan to Succeed with Failure in Mind.
4. Imagine yourself as you want to be.
Whenever someone thinks of adopting a new habit, think about the impact it will have on your life. Will this habit make me what I want to be?
If you get a yes answer, understand that your brain is ready for a new habit.
5. The best way to start a new habit.
Many people feel that they lack motivation. But they
actually lack clarity. They don't know where to go, or why they have to go.
In such a situation, one of the best ways to create a new
habit is to identify an existing habit. And then add your new habit to it. It
is also known as habit stacking.
6. You need a
good environment, not much motivation.
There is a famous
quote by James Clear, "Environment is the invisible hand that shapes human
behavior."
Every habit
starts with need. This need stems from your environment. So always pay
attention to the circumstances around you and recognize the need for good
habits being formed in them.
7. How to do Self Control.
Once a good habit is formed, it will always be remembered.
Yet the human mind soon goes astray. For example, whenever you see something
sweet during a weight loss diet, you start losing self control. Some people
even give up their diet after giving up.
That is why self control is very important. The best way to
make it is to keep such things out of your sight that can break your morale.
Always keep your eye on the reward. Think that if I follow
this habit completely today, what will be the benefit of it tomorrow.
By making your habits attractive and keeping your eyes on
the result, one gets used to the habit.
There is no doubt in this, we always try to be like the
people around us. That is why it is important that your family and friends have
good habits. If it is not so, then you join a circle or club where people of
your mentality have to sit up.
10. How to find the
cause of bad habits and change them.
Just as thinking about the result of a good habit makes it
attractive, similarly thinking about the result of a bad habit makes it
unattractive. That's why pay attention to your routine and find habits that
waste your time. Then consider the consequences of those habits and change
them.
11. Proceed slowly.
To change your habits, it is also important that your new
habits are easy. Habits are formed by repeating and moving forward slowly. Fast
runners often get tired.
12. Less effort and
maximum results
How nice to hear this, doesn't it? In reality, our brain
works the same way. It also likes to take the less laborious route. So to make
your brain work better, keep it happy and listen to it. When the hard work is
less, then you will also get into the habit of doing less.
13. Stop
procrastination in 2 minutes.
Procrastination means procrastination is the biggest enemy
of good habits. The only way to change this is the two minute rule. According
to this, whenever you think of doing something, start doing it within two
minutes of thinking about it. This will not give your mind a chance to wander.
14. Make good habits
a part of life and get rid of bad habits.
Just as it is important to make good habits easy to adopt,
bad habits must be made difficult to get rid of. This is the inversion law.
For example, when we have to get rid of the habit of using
social media sites, then we delete those apps only. With this we make that
habit impossible.
15. The main rule of behaviour change.
Whenever we get satisfaction from doing something less, we
do not shy away from doing that thing again. That is why in order to change the
behaviour, make the new habits satisfactory. This is the main law of behavioural
change. Always do that work which gives peace to your mind.
16. How to stick to good habits everyday.
We get the most satisfaction when we accomplish one of our
goals. Now download a habit tracker for whether you have accomplished your goal
or not. Or track your habits by marking on the book or calendar. This will
establish a connection between your habits and you.
17. How Making Someone an Accountability Partner Changes
Everything
If there is someone in your life who wants to see you
successful, then definitely share your routine with them. Doing so establishes
an accountability, which helps you stay on the right track and stick to good
habits.
Feb 7, 2021
Jan 31, 2021
Learn to earn by Peter Lynch
Looking for the great book, click on the link https://amzn.to/3pPDrhf
Peter Lynch: Peter Lynch is an American investor, mutual fund manager, and philanthropist. As the manager of the Magellan Fund at Fidelity Investments between 1977 and 1990, Lynch averaged a 29.2% annual return, consistently more than double the S&P 500 stock market index and making it the best-performing mutual fund in the world
A very important concept of investing is not being taught in our education system, which is Investing. Our school system train us on to get a job and earn money from it, however we were never taught about investing in schools and colleges.
We can contribute
well in the progress of the country by helping to advance the economy of our
country.
Earning money is the
basic need of everyone for survival, so to meet his basic needs. However not
everyone know, that we can enhance our simple earnings into great investments
by simply saving and investing.
Also not only we
accumulate great wealth but also take participate in the economic growth of the
country, through these investments and we can help in the economic growth of
the nation and we can achieve this through investing in the stock market.
If you own a share of
the company, you hold the ownership of the company and you become a part owner of the company.
The investor is entitled to a percentage of a profit and his liability is only limited to a share value. The benifit is that despite being the owner of the company, you do not bear the losses beyond your investment value and also you can quickly buy and sell the shares of any company at any time.
We can analyse any
company by using simple maths and can invest in them by purchasing shares.
Simply we use our small savings and invests them in mutual funds, stocks and
shares, in different bonds and in Government security bonds for a better return.
We are not taught about the power of saving and investing that money from a young age and putting the money at work, that how money makes more money for us using the power of compounding.
Investing money in the right place can lead to our future financial growth.
The important factor is not how much you invest, but for how long you kept the money invested, that's where the Power of Compounding works.
Einstein famously said that compound interest is the most powerful force in the
universe. He said, “Compound interest is the 8th wonder of the world. He who understands it,
earns it; he who doesn't, pays it.
Warren Buffet, start investing from the age of 11 and by the age of 60 years, he gets his millions from those investments, he invested the money for 50 years and hence he has this massive wealth from investing in stock markets and mutual funds.
We do not really know the power of all the money, when we think that if we are going to buy some goods for 1000 rupees then we think that we will spend 1000 rupees. But the big investors who really understand the power of money, they see how anyone looks at the expenses
As per Peter Lynch has to spend one thousand rupees then he will think
first that if I do not invest this one thousand rupees and on this, I will get
24% profit per year instead of 29%, then in twenty years one of today's 1000
rupees will be about one and a quarter lakh rupees. They think that if I am
spending a thousand rupees here today, then I am not losing a thousand. After
twenty years I am making a loss of 1.25 lakh rupees. Whenever you think that
you are spending money today, if you are in the stock market or
If you put it somewhere wise and let it remain for
many years, then how much money you can save on it. Only then will you
understand the real power of money and then whenever you make any small savings
you will also invest it properly. No matter what your income is, the amount of
money you can save,
Save and keep investing in the market. After a long time, after 15-20 years, it is certain that you will have a lot of money. It is said that the real power of money should worry about the future value, not today. Many people will also think that after 15-20 years, inflation will also increase, but if you look at the figures, inflation increases at the rate of about 6%. That is why if you buy stock well, in the next 15-20 years you beat the inflation.
Timing the Market:
That is to always
think that if I have taken a share in 100 and will sell it at 200 then when it
comes down to 150 then I will buy and sell at 200. They may also be successful
in doing this a couple of times, but by doing so, it becomes the habit of the
investor to buy a stock and earn 10% -20% in it, then sell it and then when he
If the stock goes down then I will buy it again.
They think of earning from this cycle. But here Peter Lynch has told that no matter how big the world investor is, he has never been able to time the market. If the big people could not do this field, then our chances of being successful in it are very less. Which has less chance of success, why to do it? So stay away from it.
For example, if you have a good share, which you got for 100 rupees, you kept that share for 150 but as soon as it turned 150, you sold it thinking that when it comes to 120 or 130, then I buy again. I will take it, but if the same share goes straight from 150 to a thousand, then you have lost the opportunity to earn 10 times, only in the greed that 20-30 rupees will go again, I will buy again.
From this cycle,
they think of earning. But here, Peter Lynch has pointed out that no matter how
big an investor in the world he has ever been able to time the market. The
chances of us succeeding in what the region has not been able to do big people
are too low. Why do they have less chance of success? So avoid it.
For Example if you have any good shares, Which you got for Rs. 100, kept your share up to 150, but as soon as it was 150, you sold it thinking that when it came to 120 or 130, I would buy again, but if the same share goes up from 150 to a straight thousand, you lost 10 times the chance to earn only 20-30 rupees in this greed. I'll buy again. If you have taken shares in a good company, its fundamentals are good, you trust it, then avoid time to market in an affair to earn Up 10, 20 rupees. If there are good shares, keep it falling or growing for a long time only if you are able to make good money.
If you have taken shares in a good company, its fundamentals are good, if you have faith in it, then you should avoid having to time the market in the matter of earning 10, 20 rupees. If there are good shares, then fall or rise, keep it for a long time only then you will be able to make good money.
When we buy a stock, we are actually become the owner of the business, So there is a difference between a speculator and investor.
A speculator is one, who does short buy and selling and try to time the market and an investor believe in investment for the long time.
We do not really know the power of all the money, when we think that if we are going to buy some goods for 1000 rupees then we think that we will spend 1000 rupees. But the big investors who really understand the power of money, they see how anyone looks at the expenses.
If Peter Lynch has
to spend one thousand rupees then he will think first that if I do not invest
this one thousand rupees and on this, I will get 24% profit per year instead of
29%, then in twenty years, one of today's Thousand rupees will be about one and
a quarter lakh rupees.
They think that if
I am spending a thousand rupees here today, then I am not losing a thousand.
After twenty years I am making a loss of 1.25 lakh rupees.
A common investor comes to this market with big dreams, there are a lot of expectations. He always thinks from this stock market that he should not buy the wrong shares from the always successful, the Mutual Fund in which he put the money in the share should always go up. And he always starts to consult from place to place in the way he is finding the right stock. But it is not always possible to do so, if you have come to the stock market, let's assume that you will lose.
There are no one in this market that has never suffered. That is why you are not afraid of being failed, you know that all the big investors in the stock market have a very high rate of failure. It is not, that only 10% or 20% fail, they also fail very, they also sometimes buy very bad shares but what they do, they hold the good shares for a long time. If a share is Rs. 1000 it means that it has increased by 10 times, your 5 losses will compensate the share. Suppose you have put 100-100 rupees 10 and one of your shares increases by 10 times and 9 shares of the rest are zero, you are in No Profit, No Loss.
What do you have to do, buy some wrong shares,
buy if there is a loss, what mistake did you make and what did you think of
buying the share that went wrong? What was your guess? You don't understand the
management of that company or you don't understand that industry or you're
relying more on that company's product.
Learn from your mistakes :
A common investor
comes to this market with big dreams, there are a lot of expectations. He
always thinks from this stock market that he should not buy the wrong shares
from the always successful, the Mutual Fund in which he put the money in the
share should always go up. And he always starts to consult from place to place
in the way he is finding the right stock. But it is not always possible to do
so, if you have come to the stock market, let's assume that you will lose.
There are no one in this market that has never suffered. That is why you are not afraid of being failed, you know that all the big investors in the stock market have a very high rate of failure. It is not, that only 10% or 20% fail, they also fail very, they also sometimes buy very bad shares but what they do, they hold the good shares for a long time. If a share is Rs. 1000 it means that it has increased by 10 times, your 5 losses will compensate the share. Suppose you have put 100-100 rupees 10 and one of your shares increases by 10 times and 9 shares of the rest are zero, you are in No Profit, No Loss.
What do you have to do, buy some wrong shares, buy if there is a loss, what mistake did you make and what did you think of buying the share that went wrong? What was your guess? You don't understand the management of that company or you don't understand that industry or you're relying more on that company's product.
Was that the problem that caused the company to flop? And next time, improve that mistake and buy the shares with caution. In this way, when you reduce your mistakes, one day it will come when you are able to buy good shares continuously. Not much if you've got only 10 stocks that have been 100 times, you'll be able to make good money.
Stock Prices are not top priority:
Suppose you should
be told that there are a 10,000 mobile phone, will not take it? You will
immediately say how do I take it, tell me something about that mobile?
What are the mobile model, RAM, screens resolution, battery backup etc. When we want to know all about it before buying everything, why doesn't it happen to the stock?
Why when it comes to sharing, first of all, we ask, what is going on? The price of that share does not mean anything unless we know what the quality of the company is?
How weak or how strong are the company? Who are in his management? What is his balance sheet? Annual Returns? What are her Future Plans? Etc.
Only when we know all these are the value of that share price. Only then can we predict whether the shares are getting cheaper or costlier? Without knowing all this, we all make a mistake that whenever a share name comes, we ask what is the price? First you should read about that company and then decide something. The price of any share says nothing in itself.
Start Early:
It
is very important, as soon as you can start, especially young people think that
we don't have much money now, I can save 500 or 1000 rupees a month. No matter
how much you are able to save, it is necessary to start.
The
less money you get started, the more mistakes are in the beginning and you
learn from those mistakes. If you have less money, you will also feel less pain
of making mistakes. This is the best time to start
investing in our country, which today our countries are zero Brokerage brokers
who do not take any commission from us to invest from you. For e.g. Zerodha or
Upstox, I use Upstox myself. If you want to open your Account in Upstox, click
here.
If
you want to invest in mutual funds, applications like Grow or Kuvera are
available that let you buy Mutual Fund without any commission. That's why you
start to invest as quickly as you can. Mr. Warren Buffet, the world's largest
investor, has been investing since he was 10-11 years old, making money by
selling newspapers and coke bottles and investing his savings in the stock
market. He always finds good companies, and holds it for several
years.
And
finally, I would like to say the most to you, you can invest your small savings
(Saving) in buying stock market shares or in mutual funds. But just as you have
to learn to drive first and practice it to drive. In the same way, you need to
learn your money before you invest, so first of all, you should be the goal to
learn about investing, then say your sweat earnings and get profits|
Why Stock Market?
The different kind of
investment available today after you save some money aside are as below:
1.
Fixed
Deposit in Banks and Financial Institution
2.
Mutual
Funds
3.
Gold
or Gold Deposit Scheme such as Sobranie gold bond.
4.
Government
Bonds and Debentures Schemes
5.
PPF(Public Provident Fund ) Scheme
6. Real State
7.
Stocks
and Shares
Every Individual wants
to make more money with the help of money he already has. The process of making
money out of money is known as Investment. Investment is the commitment of
funds in an asset or financial instruments with the aim of generating future
returns in the form of interest, dividend or appreciation in the value of the
instrument. Investment is involved in many areas of the economy, such as,
business management and finance no matter from households, firms, or
Governments.
Usually Investment is
confused with the commitment of funds for gains only hence risk and duration of
investment is ignored. Funds used for gambling, speculation also are committed
for gains but these cannot be termed as an Investment. Investment is a process
where an individual carefully analyse the various investment instruments
available in the market defines his risk profile and then matching these two
take the decision to put his money for a longer period to earn returns.
An investor has
different investment options to choose from, depending on his risk profile and
expectation of returns. Different investment options represent a different
risk-reward trade off. Low risk investments are those that offer assured, but
lower returns, while high risk investments provide the potential to earn
greater returns.
Hence, an investor’s
risk tolerance plays a key role in choosing the most suitable investment.
Various investment options available are Bank Deposits, Commodities like Gold,
Silver etc., Post Office Savings Schemes, Public Provident Fund, Company Fixed
Deposits and Stock Market options like Bonds and Debentures, Mutual Funds,
Equity Shares etc., Of the various types of investment options in the Stock
Market, Gold Exchange Traded Funds (Gold ETFs) happens to be one of the best
options to be included in the portfolio for diversification of risk.
IThe biggest mode of
investment is the stock market in which most of the people are willing to
invest. But due to lack of knowledge, some of them not get a proper start.
As like, before
driving a car we have to train ourselves and also do practice to drive a car.
Similarly in the stock market before investing we should know properly how to
invest in the stock market.
Stock Market
is the place where a businessman can collect money for their business. In 1602,
the world’s first Stock exchange market was developed in Amsterdam. People can
purchase a share of the company in the stock market and become its part-owner.
The growth of the
company increases its share price. So when the company get success it provides
profit to its company, their investors, give jobs to people and pay tax to the
government. Investors become part of the success story of a company and earn
profit by investing in them.
Among all the other mode of investment, historically it has been found that Stock Market always give a huge return on investment over the long run and when the money is compounded.
If you buy the share/s when the prices are hight and sell them when prices are low as market always fluctuats, you will be at loss.
However in the long run, you will always earn good returns if invested intelligenty on the good stocks.
The Key is you need to start the inestment by investing at the low rate of the share price and sell it when the company grows along the way, where the share price increses, you get devident income as an added benifit and a high return, which when invested it provide more yeilds on the amount invested and that is how you grow your wealth.
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