I have always adored anything Buffet and his close friend Charlie Munger had written or told through the media or any other way because what they say can be a great learning opportunity for all of us. And why should I or anyone listen to them?
They bought a company when its market capitalization was only $10 million and now the same company has a market capitalization of $974 billion or close to a trillion dollars. Each and every day they have taken small steps that have improved the performance of the company.
The cost of a single share of Berkshire Hathaway is more than the lifetime earnings of many people.
And they speak common sense and psychological aspects of doing things. They don’t say anything which you can relate with. And they too have started small.
In fact, everybody starts with a step. Then they improve and start running.
And that is what we have to do in the investing career.
Basics of investing are very clear and simple, save before you spend and what you save, invest in assets that appreciate in values over time.
So, if you want to build wealth, you either start now or you delay with the beautiful excuse of not starting because it’s risky ( because your neighbour has told you or your colleague who always bet on lotteries told you, or your distant relative’s uncle had told you).
Today, you can start investing with just 100 rupees in a mutual fund which invests in dozens of stocks in tens of sectors providing you enough safety of principal amount.
You can open a demat account through a phone call and start investing in stocks ( however that is not a recommended way until you learn about analysing stocks and choosing them as per your preference). Your smartphone is your biggest library which can give you access to an ocean of information about the stocks ( this facility was a dream a few decades ago when collecting information about the companies was a herculean task).
You can learn the investing principles of world’s well known investors like Peter Lynch, Carl Ichan, George Soros, Rakesh Jhunjhunwala, Damani, Pabrai, Kedia to name a few.
Now what is left is your action to become rich and take that first step. If you don’t take action now, then the chances are you will never take any action and that is psychology. There is no good or bad time in the market, it is the time in that market that matters the most.
So, what’s up, learn about investing, start saving money for investing and make your first investment towards financial freedom.
Believe it or not, not starting investing is like not choosing freedom.