I'm putting most of my wealth in these 5 Assets! (for Long-term) | Akshat Shrivastava

Summary

In this video, the speaker emphasizes the importance of long-term investing, highlighting the significance of understanding taxation, commissions, and risk-reward equations. They discuss bad investment practices, such as relying on fixed deposits and trading-oriented products, and stress the potential of assets like Bitcoin, unlisted stocks, small cap stocks, and luxury real estate. The speaker also introduces the concept of golden visas and tax residencies as a strategy for wealth preservation amidst rising taxes.

Takeaways

• 📈 Long-term investing is crucial, and understanding where to put your money is key to growing wealth.
• 💼 Keeping skills updated and learning new ones is as important as managing investments to stay relevant in the job market.
• 🔗 The partnership with Growth School highlights the importance of acquiring relevant skills, such as AI, for career advancement.
• 💼 The video emphasizes the risks of short-term trading and the benefits of long-term investment strategies.
• 📉 The change in short-term capital gains tax from 15% to 20% in 2024 affects the profitability of trading stocks within a year.
• 💹 The impact of commissions on investments is significant, with a 1% commission leading to a substantial reduction in portfolio value over time.
• 📉 The video warns against the pitfalls of investing in overvalued large-cap stocks and the potential for returns to revert to the mean.
• 🚫 It's important to avoid bad long-term investments like FDs, which do not keep pace with inflation and can lead to a loss of buying power.
• 🌐 The script introduces the concept of segmental inflation, which varies based on lifestyle and location, affecting the real returns on investments.
• 🏆 The video concludes by encouraging viewers to learn about complex financial strategies like tax residencies to protect and grow their wealth.

Q & A

What is the main theme of the video?

The main theme of the video is long-term investing, focusing on where the speaker is putting their money on long-term bets and providing practical advice on investment strategies.

Why is the speaker emphasizing the importance of learning new skills in relation to long-term investments?

The speaker emphasizes the importance of learning new skills because not updating oneself with relevant market skills can lead to being left behind in the job market, which is analogous to the risks of not managing investments wisely in the stock market.

What is the significance of the AI workshop mentioned in the video?

The AI workshop is significant because it offers an opportunity to learn relevant skills around AI, which can be applied to various fields such as Finance, HR, sales, marketing, and operations, thereby enhancing one's career prospects.

What is the change in short-term capital gains tax on equities as per the 2024 budget discussed in the video?

As per the 2024 budget, the short-term capital gains tax on equities has increased from 15% to 20%, which is a 33% change in the gains that can be booked by trading.

How does the speaker illustrate the impact of commissions on long-term investments?

The speaker illustrates the impact of commissions by showing that a 1% change in commissions can lead to a nearly 30% change in the portfolio over the long term, emphasizing the importance of low-cost investment strategies.

What is the speaker's view on small cap investments after the article published by Mint in 2023?

The speaker believes that the negative sentiment expressed in the Mint article about small cap investments led many people to miss out on a 75% rally in the small cap index, suggesting that the article's advice was misguided.

Why does the speaker consider fixed deposits (FDs) as a bad long-term investment?

The speaker considers FDs as a bad long-term investment because the after-tax returns from FDs are often lower than the inflation rate, leading to a loss of buying power over time.

What is the speaker's stance on Bitcoin as a long-term investment?

The speaker views Bitcoin as a good long-term investment due to its potential to beat inflation and its increasing use cases, such as mobile recharges and real estate purchases in certain countries.

What advice does the speaker give regarding unlisted stocks as long-term investments?

The speaker advises that unlisted stocks can offer good long-term returns, using examples like Swiggy and Zomato to illustrate how such investments can turn into multibagger stocks.

How does the speaker suggest approaching the concept of tax residencies for long-term financial planning?

The speaker suggests that understanding and structuring tax residencies is crucial for long-term financial planning, as it can help save a significant amount of capital from being lost to taxes.