Ideas on Personal Finance
“My Gamestop shares are down 50%! What should I do?” I was recently asked this question at a pizza party. I gave the only answer a consultant ever gives, “It depends.” “Depends on what?!” the host asked. “On whether you bought Gamestop as an Investment or for Gambling?” Seeing the quizzical look, I decided to … Read more
Around 2011, I first became aware of Amazon – I had recently become an Amazon Prime member and was impressed by Amazon’s fast delivery and customer service. I wondered if I should invest in Amazon stock… Amazon: A very expensive stock The prevailing opinion at that time was that Amazon (around $150 in 2011) was … Read more
The simple difference between working for money and having money work for you can be the difference between being poor or becoming wealthy! It’s your lucky day… Someone comes up to you and offers to make money for you. Even better, they expect nothing from you! Initially, you think that it is a joke. But … Read more
Einstein said that compound interest is the most powerful force in the universe. Compounding takes time, but it can provide a big boost to your finances. Compounding: Simple, yet powerful You really don’t know something well until you experience it first hand. I knew how compounding worked in theory. But over the years, I have … Read more
Although this is an ancient proverb, it still rings true. Trying to make a quick buck is enticing and might work sometimes. If someone is a great investor and can consistently pick winning stocks, that is great. However, for most investors – building wealth takes persistence and a lot of patience. I have been investing … Read more
One of the things that surprise me when I hear people talk about their investments is – ‘Our biggest investment is our house!’. A house that you live in, by definition, cannot be your investment. An investment is something that you can sell. If you sell your house, you will have to pay rent or … Read more
The simple difference between working for money and having money work for you can be the difference between being poor or becoming wealthy! In the first case (working for money), people work to earn money every month. But after earning money, they proceed to summarily spend it by the end of the month. So they … Read more
A hilarious quote, but also astute. Often I have bought a stock thinking that I am getting a bargain and the price will go up. But if I was honest with myself, there were only a few times when I had done my homework and analysis about the company. The rest of the time, I … Read more
A great quote about investing from a legendary investor. Buffett is considered a legendary investor because he has the right temperament (amongst many other things). So he was really able to ‘buy low and sell high’. On the other hand, I have tried to make money by buying and selling shares – but have not … Read more
The quote on patience from the legendary investor Warren Buffet is funny, but I have found it to be true on my Financial Independence (FI) journey. When I started on my FI journey, I used to trade a lot. I used to buy and sell shares often. All in the hope of making a huge … Read more