About these ads

Gone Fishing With Buffett


wealthymatters Warren Buffet follows his own investment method and has stuck to it through thick and thin to made a lot of money. The key principles of this investment method, as described by Sean Seah in his book Gone Fishing with Buffett are as follows:

1. Investment Rule Number 1: Never Lose Money
Investment Rule Number 2: Never Forget Rule Number 1.

2. Risk comes from ignorance.

3. Buy businesses with good and exceptional economics and buy them at a sensible price. Repeat until wealthy.

4. The stock market is the only place where people who drive BMWs take advice from people who take the train.

5. If you need complicated maths for investing, Buffett would probably be distributing newspapers today. Read more of this post

About these ads

Bet On Sure Things


wealthymatters

Both investments have an 8 percent average annual return. But Investment #1 has a wide range of returns, while Investment #2 has a stream of returns that more tightly hug the average annual return.

If each of the points on the charts represents a monthly return and both investments achieve the same end result, which investment should you choose?

The answer: Investment #2 — the one with the tighter distribution of returns since it gives you a higher probability of achieving a higher return. Read more of this post

All About Entrepreneurs


wealthymatters.com

The Dangers Of Ossification


wealthymatters.com

In the story below Alok Kejriwal narrates what happens to a family business when it is ruled with an iron fist by the older generation which gives younger family members and outside professionals no opportunity to air new ideas.

Experience is good.And everything new is not necessarily good.Professional managers are not automatically better than family talent.It doesn’t pay to cast aside the old tried and tested methods without thought.However,nothing good comes out of eschewing new ways altogether.Taking a risk on something new,when the older way has been very successful,is hard.But regularly experimenting with new ways in a controlled manner and adopting them if they are good, is a must to stay competitive. Read more of this post

Advice For Speculators


Below is a nice write-up I found here: http://www.numbersleuth.org/trends/.It has some pretty sage advice if you like to gamble or speculate.

Personally,while my brain can grasp the fact that Warren Buffett’s  style of investing is the best way to make and keep money,I find it hard to control my urge to speculate.I deal with this problem by clearly delineating what resources I will gamble with and what I won’t ever hazard ,come what may.Next I’m willing to do what ever I need to to better my odds.Do read the article below;I have highlighted the important part.It will remind you of Rakesh Jhunjhunwala’s advice to buy with conviction.

Savvy Advice for Unsavvy Gamblers

Wealth Pyramid


wealthymatters.comNo great fortune was built in a day.Slaving away, saving and putting money away might make you a nice nest egg after a while and over a few lifetimes a family might even get to be pretty well off.But when it comes to a fortune of any considerable size, in addition to sustained hard work and probably talent there is some effect of fortuitous circumstances . Often fortunes are made in just one business or one through one right call on some speculation.However there are too many ways to lose a fortune either through greed, overconfidence, a failure to admit a lack of understanding,a change in circumstances etc.So no matter the size of one’s wealth or the precise nature of its origin it is important to have a wealth pyramid in place.The general idea is to ensure the safety of the largest amount of one’s wealth. Read more of this post

Gold Investment Pyramid


wealthymatters Read more of this post

James Montier’s The Seven Immutable Laws of Investing


 

wealthymatters.comJames Montier expounds The Seven Immutable Laws of Investing to help investors  avoid some of the worst mistakes, which, when made, tend to lead them down the path of the permanent impairment of capital.They are as follows:

1. Always Insist on a Margin of Safety

Valuation is the closest thing to the law of gravity in finance .It is the primary determinant of long-term returns. The objective of investment (in general) is not to buy at fair value, but to purchase with a margin of safety.This reflects that any estimate of fair value is just that: an estimate, not a precise figure, so the margin of safety provides a much-needed cushion against errors and misfortunes. When investors violate this law by investing with no margin of safety, they risk the prospect of the permanent impairment of capital. Read more of this post

The Money Masters


I had trouble sleeping last night and so watched ‘The Money Masters’ on the internet.I found this documentary pretty biased.But that’s not to say that the narrator didn’t make some good points.

Read more of this post

10 Ways To Get Rich


wealthymatters.com

What better person to tell you how to become wealthy than one whose name  is a long term fixture on the Forbes List?Here are Warren’s tips on how to get rich,put together by Alice Schroeder: Read more of this post

Follow

Get every new post delivered to your Inbox.

Join 1,789 other followers

%d bloggers like this: