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Mid-Monthly April 2017

mid monthly April 2017

This is the Ninth edition of Stable Investor’s Mid Monthly.

Great Stuff Elsewhere

It’s not necessary to be twice as good to get twice the results. Just be 1% better for a sustained period of time. In other words, just identifying small opportunities to be just 1% better can lead to outsized results, when compounded over time. This 1% Rule is the real engine driving success stories.

Does the concept of retirement lead people to retiring “with some means but very little meaning”? In Artificial Finish Line, the author suggests that the whole idea of retirement is nothing more than an “Industrial Age social experiment that… has run its course.” And very soon, the transition away from ‘traditional’ retirement will be accelerated by our increasing focus on pursuing fulfillment (as “meaningful pursuits” are supplanting “pursuing means”). Interesting read. More so for people who wish to retire early.

Do you think that holding stocks for very long is guaranteed to make you do well financially? Think again. Its not a guarantee. So don’t let a market crash hit you at the finish line.

Accurate, Precise and worth going back to every now and then. These are 25 Short Investing Rules.

JP Morgan Asset Management tries to show how much you should have saved at certain ages relative to your income level. Makes for interesting reading even if its not quite applicable to Indian scenario.

Financial media is known to look after its own interest. Don’t tell me you didn’t know that. 🙂 But here are Ten Headlines You’ll Never See in the Financial Media. For obvious reasons.

This guy needs to visit India again. He is painting a totally one-sided picture of the country. And that’s really sad. Read this article A Dust over India and you will know why.

Different fields require different amounts of deliberate practice in order for someone to become world-class. Bill Gates, Warren Buffett, and Oprah Winfrey all use this 5-Hour Rule.

Small Things that Make a Big Difference – Peace of Mind – even in investing.

Maybe I should try this myself. J But easier said than done. 12 lessons from Waking Up at 4:30am for 21 days.

Markets are rising and close to new highs. I have no idea when this bull market will end. And predicting the future is near impossible. But don’t attribute all your portfolio gains to your skills. Don’t confuse a bull market for increased brain power.

It requires an equal amount of effort (or even more) to watch everyone around you make easy money, while you stick to your principles and refuse to take part in the madness. Here is to the hangover of bull markets.

Do you feel guilty of taking ‘rest’? Don’t feel so because rest is not something given to you to fill in the cracks between work. Our cultural view of rest influences our relationship to rest, creating an aversion – the mistaken belief that rest is for the weak. However, this view is flawed.

How to tackle your BUSYness addiction? And how about Email vacations?

When you examine the lives of history’s most creative figures, you are immediately confronted with a paradox: They organize their lives around their work, but not their days. Here is another article that emphasizes on the theory that maybe, working less is better for us.

Why we want things we don’t need? And what to do about this Diderot Effect?

There are numerous articles on delaying gratification and similar approaches to life. But this is an interesting article on doing small things everyday to have fewer regrets. Its similar to an advice a Chinese man gave me.

This one is ultra long but worth bookmarking and reading later. Its about innovation and how society responds to it. The pdf uses original newspaper clippings to teach us more about ourselves than we could ever learn simply by reading the news today or tomorrow. Do read (or bookmark it).

We are constantly looking for perfect systems – to do this and do that and what not. Infact, entire industries are built off of this desire to find the perfect system for anything that you have uncertainty about. So here is the Perfect System to help you out with….everything.

One man reflects on his life five years after achieving early retirement.

You can have anything in life but not everything. So you are bound to have regrets in life. But don’t beat yourself up over it. Having some regrets in life is fine. You can regret your regrets all you want. But without them, you wouldn’t have lived much of a life.

 

In last few weeks on Stable Investor

Are you trying to save some percentage of your salary? Is it 10% or less? Do you even know that saving 10% of your salary won’t be enough?

PPF rates have been cut to 7.9%. This is historical low for the popular debt product. But PPF is still a good option if you know how to use it.

In stock markets, don’t be the unlucky 6-feet tall person who drowned in 5-feet average depth river.

A new financial year has started. Here is one important advice that you didn’t ask for but still need. Thank me later.

Deciding between saving for future vs. spending today can be stressful. But you can be wise about it and take a balanced approach. Here is how to tackle saving vs spending questions you had.

A father once sent her daughter a small memo about portfolio management. Makes for an interesting reading.

You are invested in stocks, bonds, provident funds, real estate, etc. But aren’t these all linked to the Indian economy? So aren’t you ignoring geographical risks?

I updated the annual study of Nifty PE Ratio and Returns earned over next 3, 5, 7 and 10 years. You can read the comprehensive analysis here.

And the usual, State of Indian Stock markets at the end of March 2017.

 

Some Books I Read (or Re-Read) Recently

 

That’s it…

I hope you enjoyed this edition of Mid-Monthly. Please leave a comment below to share your thoughts or make suggestions for articles you think I should be sharing in future editions.

 

Want to Read More?

There are several hundred articles on Stable Investor. If you want to deep dive, then you might find the archives section useful. Or if you are new here, then here is where you should start.

You can also stay updated about things I am writing, reading and sharing by following me on Twitter and Facebook.

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Boring Tuesdays – Three Things to Read Today – 8

Hi Friends
I haven’t been regular with this Boring Tuesdays series. 🙁 And the reason for same has been a lot of travelling which I have been doing for past few weeks. I am kind of shifting/shifted to a new location and hence the lack of posts. But hopefully, will be able to give more time to blog going forward…
As usual, I share with you three very interesting things to read today…
Article 1
The Letter of the Year is out. Everybody is reading it. Though I don’t know if everybody really understands it or not. 🙂 Even I am reading it. Thought I am yet to read it completely. But its a must read and you should not miss it. Oh..I forgot to mention about what exactly am I talking about. I am referring to Warren Buffett’s Annual Letter to Shareholder, which was released on 28-Feb-2015.

Article 2
Staying on course with Mr. Buffett, here is an interesting list of 8 Unusual Things About Warren Buffett by James Altucher. Though I knew a few of them myself, rest were quite new for me too.
Article 3
We always crib about how to track our income and expenses. At times we use excel sheets, online trackers, and I don’t know what. But here is a simple and I must say, very effective way to Track your Income & Expenses without Sweating it out. Do read it.
That’s all guys…
If you missed the last two posts of Boring Tuesdays series, you can read them here and here.

And if you find some interesting articles which you want to share, please copy+paste the link to that article in comments or drop a mail to stableinvestor@gmail.com. Don’t worry if your comment is not visible as soon as you post it. Anti-Spam filters detect hyperlinks in comments (which you are sharing) and automatically park it for my review. I will eventually be notified about your comment. 🙂
 

Boring Tuesdays – Three Things to Read Today – 7

Hi Friends
Yesterday came with a big, sad news for the value investing community of India. Highly respected value investor Chandrakant Sampat passed away. Many regarded him as the father of value investing in India. You can read a small tribute to him by Forbes India here.
And here are three interesting articles for you to read today…
Article 1
Just think of it…there is no worse performing ‘asset class’ than the average investor. So true. Isn’t it? Here are the 7 Truths Investors Simply Cannot Accept, but should as soon as possible. 
Article 2
Do you know Rule of 72? If yes, then that is great. But did you know why the mathematical experts zeroed down to number 72, when 69 would have been a better choice? To know the answer, read Why Rule 72 is such a great Maths Hack.
Article 3
A really simple formula for successful investing = I + G + R + P (or rearrange and call it GRIP)
That’s all guys…
If you missed the last two posts of Boring Tuesdays series, you can read them here and here.
And if you find some interesting articles, which you want to share, please copy+paste the link to that article in comments or drop a mail to stableinvestor@gmail.com. Don’t worry if your comment is not visible as soon as you post it. Anti-Spam filters detect hyperlinks in comments (which you are sharing) and automatically park it for my review. I will eventually be notified about your comment. 🙂

Boring Tuesdays – Three Things to Read Today – 6

Hi Friends
Many of you have been sending links to interesting articles and ideas. I thank you all for your mails, as I now have a really long (& ever increasing) list of such articles. And in past few weeks, I have received numerous requests for sharing these articles on more than one day of the week. I wanted to know what others think. Please do let me know by means of comments…
In the mean time, I share with you three very interesting articles to read today…
Article 1
If you just have time to read one article today, then you need to read this superb one by Parag Parikh – Equities Can Scare You, But Won’t Kill You.
Article 2
If you ask me who my role models are, you will hear names like John D. Rockefeller, Warren Buffett, etc. All these are billionaires. But Mike Piper makes a valid case why he (and many others) should not have Billionaires as role models. Interesting read.
Article 3
You won’t know about an Indian named Divesh Makan. But Mark Zuckerberg does. And so do many other billionaires from Silicon Valley, who want him to manage their money. Read the real story about how this Unknown Indian manages Facebook’s Zuckerberg’s Billions.
That’s all guys…
If you missed the last two posts of Boring Tuesdays series, you can read them here and here.
And if you find some interesting articles which you want to share, please copy+paste the link to that article in comments or drop a mail to stableinvestor@gmail.com. Don’t worry if your comment is not visible as soon as you post it. Anti-Spam filters detect hyperlinks in comments (which you are sharing) and automatically park it for my review. I will eventually be notified about your comment. 🙂

Boring Tuesdays – Three Things to Read Today – 5

Hi Friends

It seems that last Tuesday was not that boring after all. Sensex fell a massive 855 points, i.e. 3% on that day. And instead of being happy about it, investors seemed troubled and didn’t make use of the beautiful opportunity to buy shares. I am not sure when will the people realize that market crashes are like discount sales – where you get to buy shares of your favorite companies at reduced prices!!

But let us leave that discussion for another day…

I share with you three very interesting articles to read today…

Boring Tuesday Reads

Article 1

James Altucher shares his ‘surprising’ secrets about Personal Finance. I say surprising, because none of the secrets will ask you to save money! For example: He asks you – ‘Don’t save money. Make more.’ ….Strange…but correct…isn’t it? There are many more surprises in store for those who read his Surprising Secrets of Personal Finance.


Article 2

World’s richest man is worth more than $70 billion. And reaching this level took him decades. But you can turn $1000 into $179 Billion in less than 250 days!! Surprised? It is indeed surprising. And as you might have already guessed, this feat has never been achieved before. But it is not impossible. To know how it can be done, read the link above.


Article 3

With $60 Billion at his disposal, and prices of crude oil having plunged by more than 50% in less than 6 months, it seems that Warren Buffett would be buying an oil company soon!

That’s all guys…

If you missed the last two posts of Boring Tuesdays series, you can read them hereand here.

And if you find some interesting articles which you want to share, please copy+paste the link to that article in comments or drop a mail to stableinvestor@gmail.com. Don’t worry if your comment is not visible as soon as you post it. Anti-Spam filters detect hyperlinks in comments (which you are sharing) and automatically park it for my review. I will eventually be notified about your comment.

Boring Tuesdays – Three Things to Read Today – 4

Hi Friends

The first of the 52 boring Tuesdays of 2015 is here. My guess is that majority of you reading this post, would by now have already forgotten about your new year resolutions. ;-P

If that is true, then please remember that it’s only the 6th day of the year…and it’s not right to give up so early. Go ahead and do what you planned for!! It might be tough, but I am sure it’s worth doing. I myself am making it a point to go through my Resolutions for 2015 every few days.

With that dose of Gyan above, I leave you with three interesting articles to read today…

Article 1

When she died in 1916, she was believed to be the richest woman in the world. People back then referred to her as the Witch of Wall Street. But after almost 100 years of her death, I guess it is time we start referring to her as the Grandmother of Value Investing.

Article 2

Since childhood, we have been groomed not to copy others. But here is one man, who has taken copying to great heights. Having paid a Guru-Dakshina of $0.65 Million to his mentor Warren Buffett, Mohnish Pabrai is well on his way to become one of the most successful investors of all time. This article in Outlook Business about this Copy – Pasting Investing Genius, beautifully captures Mohnish’s story and is a must read for everyone.

Article 3

What do you expect from shares of a company, which has almost never earned any profits? Nothing much…right? Wrong!! There is one such (really) big company. And surprisingly, its shares have been going up and up and up. Here is an interesting article about How Amazon gets away with never earning a profit.
That’s all guys…

If you missed the last two posts of Boring Tuesdays series, you can read them hereand here.

By the way, if you have missed out on previous post, then there is some serious discussion going out in comments section of the case study I published a few days back. If you invest in mutual funds, then you might be interested in getting involved in that discussion. You can read the case study here.

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And if you find some interesting articles which you want to share, please copy+paste the link to that article in comments or drop a mail to stableinvestor@gmail.com. Don’t worry if your comment is not visible as soon as you post it. Anti-Spam filters detect hyperlinks in comments (which you are sharing) and automatically park it for my review. I will eventually be notified about your comment. 🙂

My 7 Resolutions for 2015 – No I Don’t Only Want to Save & Invest. I Want to Spend & Read too!

In few days, we will enter a new year. And I am sure that most of you would be making resolutions for 2015 right now. A study says that 93% of new-year resolutions die by 23rd February. And if these are financial resolutions, then 96% die by 3rd February.

No. Don’t worry. There is no such study. I just made that up. 🙂

I know I am really bad at keeping my new year resolutions. So I won’t be harsh on myself if I am not able to keep them. But still, these are my 7 resolutions for 2015:


  • I will once again try to surrender an endowment-insurance policy, which an uncle of somebody sold me and I can’t surrender it, because of my family’s connection with that somebody’s uncle. 🙂


  • I will increase my Emergency Fund to cover 6 months worth of my family’s expenses. Currently its at a risky 4 months. 🙁


  • I will save atleast 5% of my take-home salary in my Travel-Fund. I will push my wife to do it too. 🙂 We love travelling and that requires planning and money. Apart from investing, I also rant (at times) about my travels on TripAdvisor. You can read a few here.




  • I will use my Market Crash Fund (with courage)… if markets go down by 15%-20% this year.


That’s all. I wish you all a very happy and prosperous New Year.



I personally want markets to correct in 2015…and that is because like previous few years, I will continue to be a net buyer of stocks even this year. But if you need some of the money (you invested earlier) in 2015, then I will pray for it to be a bullish year for you. I will wait and buy shares in 2016 🙂

Once again, have a happy and prosperous new year. Will say Hi to all of you in 2015 now.

Boring Tuesdays – Three Things to Read Today – 3

Hi Guys

It’s the second last Tuesday of 2014. Hopefully you would be getting ready to go on a vacation to celebrate your new years. So before you leave, I share with you three interesting articles.


So here it is…

Article 1

‘All past market crashes are viewed as opportunities, but all future market crashes are viewed as risks.’Makes Sense…isn’t it? How about this – ‘A couple of times per decade, investors forget that recessions happen a couple of times per decade.’ There are 14 more such statements, waiting for you in a Stunning List of 16 Rules for Investors to Live By.

Note – If the link asks you to subscribe, just copy the title of the article (in link) and search on Google. And then click on the first search result. You will get access to full article without subscribing. 🙂

Article 2

Let me ask you two things. Why are you not part of the richest 1% of your country? And how much of your total income comes from not working for others? Strange questions…Right? Joshua Kennon tells you How the Richest 1% Generate their Income. It’s a short but powerful, eye-opening article, which clearly shows what we should be aiming for.

Article 3

He bought a stock at $38 which later went down to $27. On way to the school, his sister reminded him daily, that even her stocks were going down. He felt terribly responsible. When the stock recovered, he sold with a small $5 profit. Almost immediately after, the stock soared to $202 a share. Warren Buffett remembers this episode as one of the most important ones of his life and which made him learn Three Very Important Lessons about Investing, early in his life.

That’s all guys…

If you missed the last two posts of Boring Tuesdays series, you can read them here and here.

Note 1 – Next article in this series would be published on 6th-Jan-2015 and not on 30-Dec-2014, as I will be busy with my own new year celebrations. 🙂

Note 2 – And if you find interesting articles which you want to share with others, please copy+paste the link to that article in comments* or drop a mail to stableinvestor@gmail.com


*Don’t worry if your comment is not visible as soon as you post it. Anti-Spam filters generally detect hyperlinks in comments (which you are sharing) and automatically park it for my review. I will eventually be notified about your comment. 🙂