Most of us feel the pressure to #invest our money especially when we see a dip (like the #StockMarketCrash2020). Even the professional fund managers feel the same pressure.
Because we think that is how fortune is made. (1/n)
Just because #WarrenBuffett is sitting on cash worth $137 doesn't mean you too sit on cash and wait for him to tell you when to invest.
Remember, there's no competition here. You don't need to be the best, you just have to give your best. (2/n)
#success is not achieved by following, it's achieved by leading, taking your own decisions/risks. Backing it up and learning from them. #WarrenBuffett is also a human and he just admitted one of his mistakes. (3/n)
If you're not a professional economist, or have no proper judgement of your own, there's no point timing the market.
As Peter Lynch says: If you've spent 13 minutes studying economy, you've wasted 10 minutes of your life. (4/n)
That best I think for you and me, is to keep #investing systematically through dollar cost averaging (SIP). Don't stop your SIPs. Stay invested.
10-15 years down the line, all of this won't matter.
As I always say, time in the market always beats timing the market. (5/n)
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When Dhirubhai Ambani, died in 2002,
The ₹28,000 crore business empire he built over 25 years—a darling of the stock market since the IPO was now into the hands of his two sons.
Two had shared responsibilities
The senior Ambani was the chairman and junior Anil its managing director.
But things didn’t work out well together.
So they decided to split.
“Create a kind of trap where luck cannot escape from.”
Probability is a difficult concept.
Very few people understand it.
It's importance and it’s application in real life.
Except for nerds with degrees in applied math's and statistics.
So let me break it down into simple words.
Grab your chair and enjoy this knowledgeable thread.
In Warren Buffet style,
(An important lesson for all investors)
A thread: -
Imagine you’re in an auction to buy players for your IPL team. There are 8 other bidders.
You have a budget, a watchlist of players to buy, and another watch list of ‘must-buy’ players.
Let’s say there’s a bid going on for one of your must-buy player.
Unfortunately, that player is also in the list of must-buy of other bidders.
What is likely to happen?
A bid war!
This is definitely not good for any of the buyers because they might end up paying extremely high.
Why Dividend Growth Investing is the best choice for financial freedom.
“Eat your cake and have it too.”
A thread: -
When you invest for capital gains, you have to sell a portion of your stock each time you need money.
But stocks are volatile, dependent on sentiments.
But dividends are not subjected to emotions, purely based on earnings.
Let's take an example:
Let’s say you follow the FIRE movement:
It suggests saving 25 times your yearly expense for retirement.
If the markets generate 4% inflation-adjusted return, you can live off from this money forever.
Let’s say you’re talking to a friend & got a stock recommendation.
It’s the XYZ Company. There’s some really good event happening tomorrow, which should drive the stock price up.
You’re excited; you go home, check your savings account & notice there’s only ₹20k,
for emergency.
The rest is invested in FD & PPF which is locked-in. You’re wife is going to kill you if you touch it.
You look for other assets in your house & notice there’s your wife’s jewelry that you can use but you have a dinner party this weekend & your wife will need it.