20 Timeless Financial Lessons from the book:

"THE PSYCHOLOGY OF MONEY"

– Thread –

1. Our current relationships with money are based on our past experiences & We should avoid living in that illusion.

2. One can be wealthy without superior intelligence of financial education. You just need right behavioral skills.

3. Both luck & risk are an integral part of finance.

You can make good decisions that lead to poor financial outcomes vice-versa.

4. Saying “enough” is realizing that an appetite for more will push you to the point of regret.

5. Financial success is less of a science & more of a soft skill.

6. Buying impressive items to gain admiration & respect from others is a fool’s pursuit~ These things can not be bought.

7. Don’t move your goalpost to suit your current needs.

Once you have more money & power. It's easy to get lost in ambition so stick to your goal.

8. There are certain things which are never worth taking a risk like Character, Family, Friends & Freedom, Happiness.

15 of the smartest things ever said: 🧵

“We are what we repeatedly do, Excellence is therefore not an act but a habit." –Aristotle

"Look at a day when you are supremely satisfied at the end.

It's not a day when you lounge around doing nothing; it's a day you've had everything to do and you've done it."

–Margaret Thatcher

“Nearly all men can stand adversity, but if you want to test a man’s character, give him power."

–Abraham Lincoln

"It is impossible for a man to learn what he thinks he already knows."
–Epictetus

How to Win (without talent or luck):

Operate in Your Zone of Genius

Your Zone of Genius is where your interests, passions and skills align.

Operating in your Zone of Genius means playing games you are uniquely well-suited to win.

Once you identify it, you can stop playing *their* games and start playing *yours*.

Adopt a Positive Sum Mentality

Want to get ahead in life? Start genuinely rooting for others to succeed.

When one of us wins, we all win—winning spreads.

If you adopt that mentality, you’ll become a magnet for the highest quality people.

Speak Up

Closed mouths don’t get fed.

A little push goes a long way. Don't sit back and wait for good things to happen.

If you want something—and you’ve put in the work for it—ask for it.

Worst case: you’re told no and nothing has changed.

Best case: it’s yours.

Play Long-Term Games

Life is the ultimate long game.

Those with low time preference play it more effectively—they happily delay gratification to allow compounding to work its magic.

In a world of people seeking instant gratification, this is a meaningful edge.

I asked, "What’s the BEST podcast episode you’ve ever listened to?"

I received 235 replies.

Here are 20 podcasts you should check out:

(links included) 🧵

1/ @naval with @ShaneAParrish

Naval is one of the wisest people you'll ever listen to. In this pod, you'll learn about his legendary reading habits, his favorite mental models, how to overcome bad habits, and so much

2/ @davidgoggins with @joerogan

Goggins is truly one of the hardest men on the planet. He's a former Navy SEAL turned ultra-endurance athlete. If you want to get in shape or become mentally tougher, listen to this

3/ @jockowillink with @tferriss

There's so much to learn from Jocko, I don't know where to begin. From Extreme Ownership, to GOOD, to the truth about war being the best & worst experience, why you should stay humble, and

4/ @tferriss with @jockowillink

Tim Ferriss almost never does podcasts anymore. But here, you have him and Jocko talking about one of their favorite books for 4 HOURS. Listen to learn about the life of a warrior, facing death, and

Attended a clubhouse talk on:

"Common Investing mistakes" hosted by
Hena Mehta @hena1220 co-founder of Basis with
Aditi Kothari Vice Chairperson DSPMF &
Kalpen Parekh @KalpenParekh MD-CEO DSPMF
moderated by Dipika Jaikishan @dipikajaikishan

🧵 on key learnings:
@getbasis
@dspmf

A common investing mistake:

Taking out money when market falls!

Reason:

~ It's difficult to get in once you get out

~ If you manage to get in you will be late and lose the rise in the market.

Don't exit when market falls, neither stop the SIPs.

What's important for an investor?

Avoid being a bad investor; than worrying about being a good investor.

Basic mistake in investing:

Not knowing why we are investing!

We often invest because:

~ Others are doing it
~ We see the particular asset class is popular

But we don't understand the asset class

Wrong reasons for investing in asset class!

Gold : Because of family culture or as a symbol of inter-generational wealth.

FD: Because it's safe

Equity : To double money quickly!

Let Krishna Born in your Portfolio.

Mahabharat of Mutuals.

A Thread on Mutual Fund Saga Simplified for layman warrior.

Krishna asked Arjuna to choose either Krishna himself, unarmed with passive involvement in the war as a charioteer or his mighty Narayani Sena, the most powerful army in the world at that time.

Arjuna chose Krishna over the Narayani Sena. Duryodhana was pleased by Arjuna’s choice, and the thought of adding the mighty Narayani Sena to the Kaurava’s ranks gave him a feeling of great strength. And the rest is history.

Like Mahabharat, the stock market is a chaotic place, a battle fought between players motivated by emotions which, in another time, led to the Mahabharat. The pain of lost kingdoms and wealth, the jealousy of others gain and the anger over people breaking rules.

As a new investor when you enter this battleground, you’re mostly unaware of the emotions and intentions of different characters. But to play a long term game and win the battle, you need to find the character that suits your personality the most.

Some interesting themes:

1. Amines - alkyl amine, balaji
2. Acetyl derivatives- Laxmi organics , Jubilant ingrevia
3.phenols - deepak nitrite
4. Solar/renewable- Borosil renewable, visaka
5. EV theme- Tata power, kabra extrusion, fiem, tata elxi, LTTS (many more)

Keep adding..

QSR and delivery- Jub food, BK, Zomato, devyani

Retail- Dmart, reliance retail

Cons.durable manufact.- Dixon, amber

Music - TIPS, SAREGAMA
Platforms- CDSL, CAMS
Travel monopoply- IRCTC
Digital tech basket- easytrip, cartrade and many upcoming IPOs

Credit cards - SBI Cards
India economics-Bajaj twins
Alcohol- Globus spirit
Rice - Daawat
Broking- angel broking, isec
Insurance- hdfc, icici, sbi

Chemical compunders- many here, my favorites- atul, SRF, aarti ind

Animal API - NGL finechem, sequent scientific

Pharma glass equipment- HLE, GMM

Injectables + pharma - gland, caplin, laurus

Reading is to the mind what exercise is to the body.

But nowadays, let alone buying a #book, it takes a lot of effort to even finish what we had started because of our hectic schedules.

To solve this, @elearnmarkets brings you best #finance book summaries, all in one place!

🔖One Up On Wall Street by Peter Lynch

This book provides a holistic knowledge of investing in stocks. The author discusses how to use what you already know to make money in the market. It serves as an extensive guide for investors. Read more:

🔖Think and Trade Like a Champion by @markminervini

The book will show you how to increase your returns while keeping your risk to an absolute minimum. Mark reveals his personal trading rules that made him super successful stock trader.

Read more:

🔖Trading in the zone by Mark Douglas

Douglas uncovers the underlying reasons for lack of consistency & helps traders overcome ingrained mental habits that cost them money. He exposes the myths of the market, to look beyond random outcomes.

Read more:

🔖Rich Dad Poor Dad by @theRealKiyosaki

Robert Kiyosaki developed his unique economic perspective from two very different influences. He speaks about the monetary problems experienced by his poor dad and the life experiences of his rich dad.

Read more:

Logical fallacies are errors in reasoning that undermine the quality of an argument.

THREAD: 20 common logical fallacies to learn, identify, and avoid:

Ad Hominem

Latin for "to the person" - an attack of the person rather than the argument.

Instead of addressing the argument and its points and merits, the offender attempts to refute the opposition on the basis of personal characteristics.

All-too-common in politics.

The Texas Sharpshooter

A Texan fires a gun at a barn wall and then paints a target around the closest cluster of bullet holes to create the appearance of accuracy.

Selecting and highlighting evidence that supports the conclusion while ignoring evidence that may refute it.

The Bandwagon Fallacy

An assumption of truth on the basis of the majority of people believing it to be true.

"Everyone believes X, so obviously X is true."

Typically offered without regard for the qualifications or ability of the people in question to validate the claim.

Straw Man

The offender ignores the actual argument and replaces it with a flimsy, distorted, easily-refuted argument (a “straw man”).

By replacing a strong argument with a weak one, the offender can create the illusion of an easy, swift victory.

List of companies with more than 50% Market Share:

1) Maruti Suzuki (passenger cars)
2) APL Apollo (structural & pre galvanized tubes)
3) CDSL (investors accounts)
4) Interglobe Aviation (air traffic passengers)
5) GMM Pfaudler (glass lined equipment)

6) Asian Paints (decorative paints)
7) Colgate (oral care)
8) Symphony (coolers)
9) PGHH (female care & vaporub)
10) La Opala Rg (opalware)
11) HLE Glasscoat (filtration & drying equipment)
12) Delta Corp (online poker games)
13) Bajaj Auto (3W segment)
14) Vinati Organics (IBB)

15) OCCL (insoluble sulphur)
16) LMW (textile machinery)
17) Bajaj Consumer (almond hair oil)
18) Indiamart Intermesh (online B2B Classified space)
19) Vst Tillers (power tillers)
20) Sanghvi Movers (overall domestic crane hiring market)
21) Emami (antiseptic & male grooming)

List of companies with more than 60% Market Share:

1) Concor (domestic container cargo transport)
2) Exide (lead batteries)
3) Naukri (Indian job market space)
4) Praj (ethanol plant installing)
5) ACE (mobile & tower cranes)
6) Pidilite (adhesives)
7) Jamna Auto (leaf spring)

8) CAMS (RTA within mutual fund industry)
9) Time Technoplast (polymer based industrial packaging)

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.

Memento Mori is a powerful philosophical tool for finding clarity and unlocking growth in your career, startup, business, writing, or relationships.

A thread on its meaning and how it can change your life...

Memento Mori is a Latin phrase that translates to "remember that you must die."

A favorite of Stoic philosophy, it is a reminder of the certainty and inescapability of death.

It is not intended to be morbid or dark; rather, to clarify, illuminate, and inspire.

Memento Mori - the idea of remembering your mortality - has been around for millennia.

The phrase itself is believed to have originated in the Roman Empire.

After military victories, the heroes were paraded through the streets on chariots.

They may have felt like Gods...

But the Romans would place one person in the chariot whose sole responsibility was to whisper in the hero's ear throughout the parade.

"Respice post te. Hominem te esse memento. Memento mori!"

Translation: "Look behind. Remember thou art mortal. Remember that you must die!"

Memento Mori served as a tool to invoke humility in moments of glory.

It can also be a tool for providing clarity.

The Roman Emperor Marcus Aurelius famously wrote in his Meditations, "You could leave life right now. Let that determine what you do and say and think."

1/

Get a cup of coffee.

In this thread, I'll help you work out how much money you need to retire.

2/

The goal is simple.

You want to accumulate a *large* portfolio of assets.

How large?

Well, you should be able to quit your job. And you and your family should be able to live comfortably for decades -- just off of the income generated by this portfolio.

3/

This is the crux of the "FIRE" movement.

FIRE stands for "Financially Independent, Retired Early".

The basic philosophy is: keep your spending needs low. Save a large portion of your income. Invest these savings. With luck, you'll be able to retire early.

4/

FIRE advocates have a rule they love to cite: the 4% rule.

The 4% rule says: your annual expenses in retirement should not exceed 4% of your portfolio.

You can use this rule to calculate how large a portfolio you need to accumulate before you can quit your job and retire.

5/

For example, suppose you and your family need $40K/year to live comfortably in retirement.

Then you need to accumulate a portfolio that's at least $1M.

Another way to say this is: your portfolio should be at least 25 times your annual expenses in retirement.

1/20
MY TAKEAWAYS FROM ATOMIC HABITS by @JamesClear

A spectacular book that focuses on building HABITS following SYSTEMS to achieve RESULTS - Instead of the traditional GOAL BASED approach.

It's a highly engaging read with plenty of practical examples .

#BookRecommendation

2/20
Your OUTCOMES are a lagging measure of your HABITS . Although difficult to appreciate on a daily basis , they MATTER IMMENSELY.
Change your habit ,to change the outcome.

It doesn't matter WHERE you are currently,
CHANGE YOUR HABIT TO CHANGE THE TRAJECTORY OF YOUR LIFE!👇

3/20
You do not RISE to the level of your GOALS .You FALL to the level of your SYSTEMS .

Why so ?

Both WINNERS & LOSERS have a Goal . What then sets them apart ?

It's having a SYSTEM in place.
Systems are forever & they result in continuous SELF IMPROVEMENT .

4/20
Reaching a goal may give rise to emptiness or targetting another goal.
But that isn't the case for systems.

Hence GOALS - OVER RATED SYSTEMS - UNDER RATED

2 small examples on my system based approach for self improvement.

#booklovers

👇

5/20
Your identity emerges out of your habits. Every action is a vote for the type of person you wish to become.

Despite knowing better we find that
changing our habits is challenging because :
1) We try to change the wrong thing
2) We try to change our habits in the wrong way.

How to Get Rich (without getting lucky):

Seek wealth, not money or status. Wealth is having assets that earn while you sleep. Money is how we transfer time and wealth. Status is your place in the social hierarchy.

Understand that ethical wealth creation is possible. If you secretly despise wealth, it will elude you.

Ignore people playing status games. They gain status by attacking people playing wealth creation games.

You’re not going to get rich renting out your time. You must own equity - a piece of a business - to gain your financial freedom.