The Thoughtful Investor
The World Of Investing
The Business of Investing
In this section, Basant talks about what Indians think about investing and the risks associated with the game, the advantages of investing in stocks and how buying a stock of a company is in some cases a better way to wealth creation than physically doing the same business. To achieve financial freedom, one must have a corpus that is fifty times their annual expenses.
“An investor has to be lazy in taking profits and agile in cutting losses.” – Basant Maheshwari
Magic of Compounding
The author emphasizes on the magic of compounding, which is the most important aspect of investing. Investors are unaware that the magic of compounding is dependent not only on the rate of return, but also on the initial capital and the time period over which the investment is allowed to compound. The chapter also discusses how a bad year can wash away years of hard work, which many investors fail to recognize in the early stages of their investing careers. Long time can compensate for a little less return rate. Being in the game matters more.