I don't know about crypto but I invested because it's was rising

- Retail Investor

Mega Thread on Personal Finance 101

👇👇👇

Rule of 72 (Double Your Money)
Rule of 114 (Triple)
Rule of 144 (Quadruple)
Rule of 70 (Inflation)
4% Withdrawal Rule
100 - Minus Age Rule
10, 5, 3 Rule
50-30-20 Rule
3X Emergency Rule
40℅ EMI Rule
Life Insurance Rule

♻ Rule of 72

No. of yrs required to double your money at a given rate, U just divide 72 by interest rate
Eg, if U want to know how long it will take to double your money at 8% interest, divide 72 by 8 and get 9 yrs

At 6% rate, it will take 12 yrs
At 9% rate, it will take 8 yrs

📋Rule of 114

No. of years required to triple your money at a given rate, U just divide 114 by interest rate.

For example, if you want to know how long it will take to triple your money at 12% interest, divide 114 by 12 and get 9.5 years

At 6% interest rate, it will take 19yrs

🗒️ Rule of 144

No. of years required to, quadruple your money at a given rate, U just divide 144 by interest rate.

For eg, if U want to know how long it will take to quadruple your money at 12% interest, divide 144 by 12 and get 12 yrs

At a 6% interest rate, it will take 24yrs

🗒️ Rule of 70

Divide 70 by the current inflation rate to know how fast the value of your investment will get reduced to half its present value.

The inflation rate of 7% will reduce the value of your money to half in 10 years.

If you're trying to analyze a company without using an adequate checklist, you may make a very bad investment" - Charlie Munger

Small Thread of Investment Checklist from Masters

1. Charlie Munger's Investment Checklist

2. Warren Buffett's Investment Checklist

3. Philip Fisher's 15 points Businesses Analysis Checklist

4. Peter Lynch's Investment Checklist

5. Mohnish Pabrai's Investment Checklist

As part of our Knowledge sharing initiative by @FinnacleAcademy and @Investmentbook1, here we are on our post 2 with some of the most important key takeaways of the book “Masterclass with super investors” by @vishalmittal22 & @basrars

Here we go! (1/n)

Masterclass with super investors is one of the best books covering the investment strategies & journey of renowned domestic investors. Our summary has been segregated in 2 parts, A) Common traits in investment ideologies of these stalwarts B) Investor specific key takeaways (2/n)

A)Let's look at a few common points in these Stalwarts' investment ideologies 1)Invest (higher % of portfolio) when you have conviction backed by sound logic 2)You need to be bullish on India to make investments in Indian cos. bcoz majority of Indian cos. are domestically focused

3. New Bull markets have new leaders when a bull markets ends the stocks which have gained the most falls the most 4. The entry price that you pay for a company should be very cheap so that even if your assumptions go wrong in future you don't end up losing money (4/n)

5. We get attached to stocks which have given us a lot of returns in past even though in current & future expected scenarios they seem overvalued 6. Focus on art of disciplined selling-it's imp. to have a sound selling mechanism just buying at right price wont create wealth.(5/n)

10 Key Takeaways from the book: The Emotionally Intelligent Investor

1. Investing success does NOT come from ignoring or suppressing emotion. Assuming that you have relevant expertise, disregarding intuition and empathetic feelings because they cannot be explained, is a mistake!

2. Self-awareness is the first and most important step in improving as an investor. An investment approach needs to fit with your unique set of motivations, personality traits, weaknesses, and strengths. Don’t try to be exactly like Warren Buffett if you are not like him!

3. Humans have certain common investing vulnerabilities, but everybody is unique in their susceptibility to them. Consider your weaknesses to be the investing biases and traps to which you are most prone.

4. Because we are constantly changing, introspection should be incorporated into the daily and weekly routines of any investor. Try writing in a trading/Investing journal.

But people get long runs when they're right on the edge of the wave,

whether it's Microsoft or Intel or all kinds of people,

including National Cash Register in the early days.

The cash register was one of the great contributions to civilization.

Your portfolio will naturally concentrate itself, the way it should be, into your winners if you just stay out of the way.

earning growth -skill
re rating - luck

those who don’t believe this, haven’t been in the market long enough to understand this.

What if I told you to submit your PhD report by the 1st year of your BTech in engineering.

That’s what people do when they try to find multi-baggers in their 1st business cycle.

@Tom_Voltz1 1/

That’s a possibility.

Buffett has this concept of “owner earnings”: how much cash can be safely taken out of a business each year without hurting it?

Take out more than this, and we risk hurting the business’s competitive position, earning power, unit volume, etc.

2/

At the same time, leaving capital in a terrible business is not a great idea either. It’s like throwing good money after bad.

In fact, directing capital away from textiles (a bad business) and into insurance (a better business) is one reason for Berkshire’s success.

/End