Investment Expert Talks About Why 30-40 Crores Is Required For Decent Retirement
Summary
TLDRIn this insightful financial discussion, a celebrity fund manager shares his investment philosophy, emphasizing the importance of learning from the market's best practices. He discusses his journey from mechanical engineering to financial success, highlighting key strategies such as investing in undervalued stocks and avoiding the common pitfalls of chasing past winners. The conversation delves into market valuation, the significance of profit growth, and the manager's personal financial independence. He also addresses misconceptions about gold as an investment and provides guidance for young investors aiming for financial freedom by the age of 50.
Takeaways
- 💡 Investing in gold may not always be the best strategy as it can be as volatile as the stock market and historically has not provided returns as high as the Nifty index in rupee terms.
- 📈 The speaker emphasizes the importance of investing in undervalued stocks with a strong history of good governance, clean accounting, and a dominant franchise, especially if their profits grow faster than their share prices.
- 📚 The impact of reading and learning from successful investors like the speaker can be transformative for one's financial journey, as it was for the person who started as a mechanical engineer.
- 📊 The speaker's book 'Coffee Can Investing' has sold around 100,000 copies, indicating its influence and popularity in the field of personal finance.
- 🏆 A significant investment success story is highlighted with GMM Foder, a company that saw a 4X return in 12 months due to increased demand for pharmaceuticals during the pandemic.
- 💰 The concept of a 'fire number' is introduced, which represents the amount of money one needs to achieve financial independence and not work for money anymore.
- 🏠 The speaker's experience with property investment in India is shared, noting that rental yield versus home loan rates can indicate overvaluation in the property market.
- 📉 The interviewee discusses the difficulty of timing the market, suggesting that investing in fundamentally strong companies with consistent profit growth is a safer approach.
- 🌐 The importance of global diversification is underscored, with the speaker allocating a portion of investments to the US market to hedge against domestic economic uncertainties.
- 🔢 The interviewee provides a formula for calculating financial independence, taking into account expected retirement age, life expectancy, and inflation-adjusted living expenses.
- 🚀 For those starting late, the concept of 'coffee can investing' is introduced, which involves investing in companies with strong compounding potential in the final years of one's career.
Q & A
What was the return on investment in gold last year according to the discussion?
-The transcript mentions that gold gave upwards of 20% returns last year.
What is the speaker's financial independence number, and what does it signify?
-The speaker's financial independence number is close to 50 crores, which signifies the amount of money needed to retire comfortably without having to work for money anymore.
What is the speaker's view on investing in gold as a long-term strategy?
-The speaker does not favor investing in gold for the long term, citing that it lacks a real-world use or earnings to anchor its valuation and has shown to be as volatile as the stock market with lower returns.
How did the speaker's investment in GMM Foder perform over time?
-The speaker's investment in GMM Foder initially did well, with a 20-30% return, and then quadrupled in value within 12 months due to increased demand for pharmaceuticals and their products.
What is the significance of the 'coffee can' investing approach mentioned in the script?
-The 'coffee can' investing approach, as described in the speaker's book, is a long-term, buy-and-hold strategy that emphasizes investing in companies with strong fundamentals and a history of good governance.
What was the speaker's first significant investment in the stock market?
-The speaker's first significant investment in the stock market was in 2012, when they invested in Templeton Small and Midcap Fund, which doubled their investment in the next couple of years.
How did the speaker identify an opportunity with Bajaj Finance during the COVID-19 pandemic?
-The speaker identified an opportunity with Bajaj Finance when the stock dropped 65% due to negative narratives around the company during the COVID-19 pandemic. They believed in the company's financial backing and client base, leading them to triple their position in the stock, which later tripled in value.
What is the speaker's perspective on the correlation between gold and the Indian stock market?
-The speaker believes that contrary to popular belief, gold is positively correlated with the Indian stock market and can be more volatile, making it a less attractive investment option for diversification.
What advice does the speaker give for a disciplined approach to saving and investing?
-The speaker advises saving one-third of one's take-home pay consistently over a 30-year career and investing in companies that are expected to compound strongly, emphasizing the importance of starting early and playing the long game.
How did the speaker perform during the market downturn in 2020?
-The speaker's portfolio was up 55-56% in the large cap portfolio for the year ending March 2021, recognizing the market panic as an opportunity to invest and load up on stocks.
What is the speaker's strategy for allocating investments between different types of companies and geographies?
-The speaker suggests allocating 30-40% of investments outside India (such as in the S&P 500), 35-40% in large cap, 20-30% in small cap, and the remaining in mid cap or as a safe harbor like FDs, emphasizing diversification and the importance of not being overly reliant on one type of investment.
Outlines
📈 Stock Market Insights and Personal Investment Philosophy
The speaker discusses their skepticism about investing in gold, citing its lack of intrinsic value and volatility similar to the stock market. They share their experience as a celebrity fund manager, managing nearly a billion dollars, and their journey from reading about finance to becoming a successful investor. The speaker emphasizes the importance of investing in undervalued companies with strong fundamentals, using the example of GMM Foder, a company that saw a 4X return in a year due to increased demand during the pandemic. They also touch on the psychological aspects of investing, such as the tendency to chase past winners and ignore companies with stagnant stock prices despite growing profits.
🏠 Real Estate Valuation and Early Stock Market Investments
The speaker recounts their experience with real estate investment, noting the high rental yields and subsequent property price corrections in Mumbai. They describe their initial skepticism about the Indian property market in 2008 and how they capitalized on the market downturn. The speaker also shares their first foray into the stock market in 2012, driven by bonuses from their employer. They discuss the importance of investing during market downturns and the significant returns they achieved by investing in Templeton's small and midcap fund during India's economic slowdown.
🤑 Achieving Financial Independence Through Diversified Investments
The speaker outlines their approach to achieving financial independence, which includes a diversified portfolio with investments both within and outside India. They explain the rationale behind investing in the S&P 500 for diversification and the importance of investing in both large and small-cap stocks. The speaker also emphasizes the value of investing during market panics, as they did in March 2020, and the importance of knowing when to increase investments. They provide a breakdown of their personal investment allocation, suggesting a balanced approach to investing in different market segments.
💼 The Journey to Financial Independence and FIRE Number Calculation
The speaker discusses the concept of financial independence, defining it as not being reliant on a single source of income or employer. They share their personal journey to financial independence, which took approximately 20 years. The speaker also explains how they calculated their 'FIRE number,' which is the amount of money needed to retire comfortably without working for money. They consider factors such as living expenses, healthcare costs, and inflation to estimate a figure of 50 crores for a modest retirement lifestyle.
🚀 Strategies for Accumulating Wealth and Achieving FIRE Goals
The speaker provides advice for individuals looking to accumulate wealth and achieve financial independence. They suggest starting early, saving a significant portion of one's income, and investing in a disciplined manner. The speaker emphasizes the power of compounding, using the example of saving a small amount annually and watching it grow to a substantial sum over 30 years. They also address the challenges of starting late and offer strategies for making up for lost time, including increasing savings rates and focusing on high-growth investment opportunities in the latter part of one's career.
📚 Accessing Investment Wisdom Through Literature and Personal Finance
The speaker concludes the discussion by highlighting the importance of sharing investment knowledge through books and other mediums. They mention their own books, which are available online, as a resource for those who wish to learn more about investing. The speaker expresses hope that the audience has gained a deeper understanding of finance and investing through the conversation and encourages continued learning and application of these principles in personal finance.
Mindmap
Keywords
💡Gold Investment
💡Returns
💡Fire Number
💡Stock Market
💡Compounding
💡Rental Yield
💡Undervalued/Overvalued
💡Profit Compounding
💡Behavioral Finance
💡Financial Independence
💡Small Cap/Large Cap
Highlights
The speaker does not invest in gold and explains the reasoning behind it, including the lack of a fundamental barometer for valuation and the asset's volatility.
A discussion on the impressive returns of a stock that tripled in two years, demonstrating the potential of market investments.
The importance of investing in undervalued markets, as illustrated by the example of GMM Foder, which saw significant growth due to increased demand for pharmaceuticals.
The speaker's journey from being a mechanical engineer to a successful investor, emphasizing the value of continuous learning.
The impact of the book 'Coffee Can Investing' on the speaker's financial education and the influence it had on their investment philosophy.
The speaker's strategy for identifying profitable investment opportunities, focusing on companies with strong profit growth relative to their share price.
A detailed account of the speaker's first significant investment in the stock market, which led to substantial returns.
The concept of 'financial independence' and the speaker's personal journey to achieve it without reliance on a single source of income.
The speaker's perspective on the 'FIRE' (Financial Independence, Retire Early) movement and their calculation of the financial number needed for retirement.
An analysis of market behaviors, such as the tendency of investors to chase past winners and ignore companies with consistent profit growth but stagnant share prices.
The speaker's experience with property investment in India, highlighting the importance of rental yield in property valuation.
A strategy for portfolio allocation, including the division between large-cap, small-cap, and international investments.
The speaker's advice for young investors on how to save and invest to achieve a financial goal of 10 crores by the age of 50.
The challenges of the speaker's toughest year in investing, which involved a significant market downturn and the importance of staying invested during such times.
The speaker's views on the role of narratives in the stock market and how they can lead to overvaluation or undervaluation of stocks.
A discussion on the importance of diversification in a portfolio, including the allocation to precious metals and their correlation with the stock market.
The speaker's experience with the COVID-19 market crash and the opportunities it presented for savvy investors to increase their positions.
The minimum investment requirement for the speaker's Portfolio Management Services (PMS) and advice for those who cannot meet this threshold.
Transcripts
you do not invest in gold right and if
you see last year gold has given upwards
of 20% returns and you mentioned that
your fire number is somewhere close to
50 cror right it's not evident to me
that anything less than 30 40 crores
will allow you to have a decent
retirement B Finance be backed up the
truck the stock uh tripled in the next 2
years right so how do you identify
whether the markets are undervalued
overvalued or do you not really care and
you just invest whenever
um most people know you you're a
celebrity fund manager who is managing
almost a billion dollars I myself began
my financial Journey listening and
learning from people like you I still
remember reading your book coffee can
investing 5 years back and that was a
GameChanger in my entire journey of
learning about Finance because see I was
a mechanical engineer right most people
assume that you know I was a CA or I was
an MBA degree you know and people can't
digest the fact that I just did
mechanical engineering but the secret to
that is listening and learning from
people like you so thank you so much for
pleas my pleasure so how many how many
copies have has your book been sold I
think officially the the publisher tells
us something close to 100,000 but I
100,000 copies yeah but in in Indian
publishing if it's 10,000 10,000 is a
best seller what is the most amount of
money you've made in a single year right
so was stock which quadrupled on us over
the course of basically 12 months right
so 4X in 12 months huh so I read an
annual I started reading a few annual
reports which were on my laptop and I
read about a company called GMM foder
right so I read that they make these
ceramic vessels right much like a giant
version of this coffee cup and in those
vessels uh uh pharmaceutical products
are made so I said this is insane I a
world leader um and you know I looked on
line they've been they've been making
good good return on Capital return on
capital is profits divided by how much
money has been put in the company okay
so I said not only World leading company
highly profitable so so much like nobody
ever got sacked for buying
IBM nobody in the Pharma industry ever
gets sacked for buying foder so we
invested in GMM foder was one of our
first stocks in our small cap portfolio
um over the next 12 months GMM fer did
all right right did all right I think we
were up 20 or
30% and then Co
arrived right and then Co arrived and
demand for pharmaceuticals obviously
went through the roof demand for GMM
fora went through the roof um and you
made 4X on by by Autumn of 2020 by
Autumn of 2020 uh the stock had gone
into the stratosphere and once it went
into the stratosphere we obviously cut
the position back because if share
prices are run up far more than profits
you know it's time to pull the position
back so we pulled the position back we
still shareholders though and profit
compounding has been Stell over the last
3 years guess what the share price
hasn't moved much in the last 3 years
okay so perhaps time to remove no
perhaps time to load up further profit
profits have continued growing over the
last three years but the share price has
not share price hasn't moved because
people people in the most people bought
after the initial frenzy so people chase
yesterday's winners right um so rather
than buying HDFC bank today they will
buy some stock which has gone up
10x in the last two years like Nvidia or
Tesla right absolutely right and that
habit that human Habit to chase
yesterday's winners where the winning
has been out of all proportion with
profit compounding right that habit is
incredibly destructive as is the habit
of ignoring companies where the share
prices have the share prices have stayed
constant or the share prices have indeed
sunk even the profits are through the
roof so at what age did you become a
kodati and how did you do it yeah so we
took our savings from from the UK we
lived in the UK I lived in the UK for 17
years we saved up some money created a
company in London we sold that so we had
a little bit more money we migrated to
India and um and initially when I came
to India this is 2008 May when I came to
India I looked at property prices in
Bombay and said this is just crazy it
makes no sense right there easy way to
figure out property valuation the world
over right it works in New York Works
can you can you elaborate so you
basically take the rental yield of a of
the property so in India most properties
rental yield is two 2 to 3% right and
you look at the home loan rate if the
home loan rate is way above the rental
yield you know there's going to be a
correction a big correction reasonably
quickly so when I came in May 2008 the
rental yield was 2% rental yeld mean the
total annual rent that you pay divided
by the property Val absolutely bang on
and I said this makes no sense so we
waited Leman Brothers happened in
America property prices fell by 40% in
the next 8 n months in Mumbai okay so
middle of was 2008 that's when you
bought so rental Ys of 5% we bought uh
we had some savings from the UK from
selling that company we used that too by
the by the flat so from that point in
fortunately we've never had to pay a a
mortgage so wait you had already a Cora
before you came to in right yeah so but
that went to buying a house no so you're
not considering that yeah because so
anything which goes into a business or a
fixed asset it's not really money you
can do much with right correct so the
proper korti thing was when my uh first
file employers started paying me nice
bonuses and then I invested that in the
stock market that's so 2012 is when I
would say I started investing in the
stock market properly so 2011 12 13 um
we went through India went through an
economic slowdown the RBI hiked rates
some 10 or 11 times the uh the stock
market tanked through 10 11 12 13 right
all the way till uh Prime Minister Modi
being declared the BJP candidate in the
closing months of 13 the stock market
was in a Downs swing so summer of 2012 I
said was this economy to is is going to
revive one day stock market is assuming
that the economy will be tanked for a
long time uh Temple tunel had a very
good small and midcap fund at at that
juncture so so I spoke to my better half
and we put the best part of I think a
couple of crores in Templeton small and
midcap fund uh life being for it is it
doubled in the next couple of years wow
so two cres became four CR four cres in
the space of a couple of years in a
small and midcap fund so how do you how
do you determine that like a lot of
people when they invest in the stock
market they're like you know is this the
right time to invest which stock should
I pick so how do you identify whether
the markets are undervalued overvalued
or do you not really care and you just
invest whenever look at the growth in
the company's profits if the profit
growth is significantly faster than the
share price growth for say 3 4 year
period you know you're not going to go
far wrong especially if it's a company
with a strong history of good governance
clean accounting dominant franchise if
the profit growth is consistently faster
than the share price growth you know
that the stock is available cheap you
load up as much as you can but is that
possible that it's not it's it's so
undiscovered that this company so let's
take a company that everybody knows
about where for four years profits have
been compounding steadily at around 19
20% the share price has done nothing
over four years right what is this this
is India's second largest company by
market cap this is India's largest bank
by market cap cap is called HDFC bank so
on the one side people get OV excited so
for example I would argue there's a good
reason to believe people are over
excited about Nvidia today why are they
over excited because every man and their
grandmother has heard about Ai and they
believe boss AI
NV right so so when people get into a
narrative when they get into a narrative
around a company then the stock loses
all sight of profitability and the stock
zooms into the stratosphere similarly
there can a negative narrative so a lot
of people for whatever reason right have
got into negative narratives on HDFC
bank right we what are the negative
narrative negative narrative is about
HDFC
limited right so various negative
narratives people have built most of the
negative narratives haven't got any
basis in fact similarly if I cast my
mind back to May 2020 right in the early
days of covid we first lockdown Bajaj
finance stock down 65% in the preceding
five months um and the whole world
believing Bajaj Finance is going to get
into a lot of trouble this is May 2020
so we did the math we did the research
and we said you know covid will end one
day we don't know when it ends but given
Bajaj finance's Financial backing given
their the quality of their client base
uh given their strength and underwriting
if Bajaj Finance gets into trouble boss
there's huge Armageddon for the
financial system it's too big to fail
it's too big to fail plus one one day
covid will end we don't know when it
will end this is at that time early May
2020 looked very dark cuz nobody knew
anywhere in the world what on Earth was
going to happen and the Western media
loves uh spinning scare stories around
India um so we said baj Finance down 65%
this company is one of the most
successful businesses across all
Industries in India let's back up the
truck and we tripled our position in baj
finance we backed up the truck the stock
uh tripled in the next two years okay
right so so so this aspect of investing
is the hardest part right the easier
aspect sharan is the start early play
the long game play the play the drait
game right consistent patient long-term
company you do not invest in gold right
and if you see last year gold has given
upwards of 20% Returns what is the
reason for that gold over long periods
of time Selden gives you more than 89%
in rupe terms right the Nifty gives you
13 14% in rupe terms at least with the
stock market you have some barometer
which is earnings correct to figure out
broadly you know what what is which
direction I I should look at gold to you
don't even have that you don't even have
a underlying be uh underlying
fundamental that you can track right you
might say hey it's less volatile but
that's not true gold is just as volatile
as the Indian stock market so that
argument is out of the window as well
and the final reason you could think
about buying gold is maybe you say boss
this can give me diversification correct
because negatively correlated but that
even that's not true really so gold is
positively correlated to the Indian
stock market is more volatile than the
Indian stock market and gives me lower
returns than the Indian stock market so
therefore to my mind it's a fetish
that's interesting because I think the
conventional wisdom is that whenever the
markets are not working well put in the
gold because gold goes up yeah but
you're saying that if you actually look
at the data the correlation is positive
that's right and think about it right if
every if everybody knows that
conventional wisdom it ain't going to
work and at the moment China has
destroyed the gold Hedge for everybody
the Chinese because of the troubles in
their own country have loaded up so
heavily on gold that it can't possibly
be a hedge for anything for anyone
is it not possible to know that last
year gold is undervalued so might as
well put in that and then write that's a
rely point right where asset has a real
world use for example this real estate
has a real world use so you can use the
real world cash flows to form some sort
of anchor on the valuation the rental
yield right for this property correct
stock market May the stock earnings or
cash flows can be a real world anchor to
the share price but with gold or with
Platinum for that matter uh or with any
precious metal that real world anchor is
hard to find right like cryptocurrency
so what is the highest cagr that you
have generated in any given year by end
of March when the stock market the
Indian stock market was around I think
25 or 30% by the end of March
2020 uh several stocks in our portfolio
were
down uh down 30 40% that's when we
realize this a huge opportunity to make
money so we organized a conference call
right for the whatever 300 400 people
people we knew then and we told them uh
that this is a great time to invest the
market is overdoing the Panic the year
ending march 21 I think we were up 55 or
56% in the large cap portfolio one year
one year yeah 55% yeah and perhaps a
little bit more in the uh small cap
portfolio wow um uh but then there were
there were there's been the other side
as well right and this is why uh knowing
when to load up further is even more
important than enjoying your successes M
so so our toughest year was the 15
months between Jan
2022 till March 23 right that 15 months
was the toughest year because we were
down 15% almost all our portfolios fell
15% in the space of 15 months and
profits of the companies were going up
okay but we broadly knew that that what
was happening was the Federal Reserve
kept hiking rates I think the hi rates
4% in 15 months and the rupee kept
falling so rupee fell from $ 72 to the
do to $82 to the do in 12 months or so
obviously as the rupee kept falling
foreign investors kept pulling out we
kept telling our clients that look
foreigners are leaving because the rupe
is falling when the rupee stabilizes
this will be fine the client who loads
up at times like that obviously makes
more money compared to the client who
runs away right so this is the piece
which is very hard to train right load
up when everybody else is heading for
the exit but load up rationally now when
it comes to equity which is the stock
market how how do I know how to divide
the money between large companies
mediumsized companies or maybe outside
of India how do I decide that proportion
right so let's do the outside India
versus inside India first so the way
we've done it for ourselves in the
office and we've created something
called Global Compounders because of
this is and we' figured out between 30
to 40% of our expenditure is on imported
items right if you invest in let's take
S&P 500 is to keep it simple right
that's the Nifty of uh the Nifty of
America if you invest in the Nifty of
America there's a diversification
benefit you get out of doing that so
just to use 2020 for an example when we
have elections in India the American
Stock Market is not going to wubble
right when they have elections in
America in November the Trump versus
Biden election our stock market is not
going to wobble so in these two markets
is where the real wealth is getting
created then we come to large cap versus
small cap so 66% is Left Right 66% is
left out of this the majority close to
35 40% is in our large cap product right
okay I have roughly 20 20 rupees out of
my 100 rupees of savings in our small
cap product right so in I in my book
coffee can investing I have said you
should consider between 20 to 30% of
your savings in in small cap in fact
there's a chapter in coffee can
investing called small is beautiful if
you buy too much of this right this is
more volatile than large caps of course
right so so small caps rally more they
correct more and most people will bail
out of small cap Investments at the
worst possible time and they will not
top up their small cap Investments
exactly when they should given those
behavioral deficiencies I suggest keep
your small cap allocation to 30 or below
I have chosen 20 to 30 so 33% goes
outside India which is the US right
another 30% goes into large cap right
another 20% goes into small cap so
another the remaining 10 15% is M cap 10
15% is the is the is the Safe Harbor
right so so right so say remember thatd
FD that are set aside so you didn't
mention a midcap then a large cap
portfol consistent compound is is large
and mid so I'm just using large and mid
as one area because the more bitty you
have one large care fund one mid care
fund one small care fund it ends up
becoming harder and harder to keep track
of it so would you call yourself
financially independent there are two
ways to think about financially
Independence one is the the way you said
right how much money do you need to say
I can walk away from working I can walk
away from working the other is to say
that I can earn that money through a
variety of means and I'm not independent
I'm not dependent on one source of
income one employer yeah right uh if you
ask me it took me roughly 20 years to
reach that stage in life you're not
reliant on an employer to cut a salary
bonus check for you yeah and say you
know I am your uh Garden master I did a
little bit of reading uh about your one
of your previous interviews and you
mentioned that your fire number is
somewhere close to 50 cres right right
and fire number for the audience meaning
you don't have to work for money anymore
so how do you you come across how do you
calculate that 50 CR number um so if you
sort of think about middle class Indian
life right middle class I mean sort of
holidays to UTI and Missouri rather than
holidays to Dubai and London middle
class Indian life is roughly 50 lakhs
per anom gross right and net of tax say
30 lakhs perom right you mean like
expenditure expenditure but would you
consider this as middle class like 50
lakhs of earnings in a year if it brings
me 35 lakhs grow you know we we try to
live modestly but I think below 35 lakhs
R is a little tough in a city like
Bombay I agree that is true so so I
think in a city like Bombay 35 lakhs
especially if you have a family and all
of that right now if you retire at 60
and say survived till 85 you know live
for 25 years then the maths is pretty
clear then I need roughly 20 crores in
today's money right how old are you
today so I'm 48 so you have 12 years
yeah so assume I retired at 60 but the
cost of living is going to go up in this
12 years right for example my employer
Mar we provide Health cover of 10 lakhs
to our employees right so when we
initially started providing this four
years ago I thought was 10 lakhs though
you know who will need 10 lakhs
increasingly I'm see seeing every year
out of say our 100 employees at least
two to three hit that number right and
when I talk to recently invested in a
Bangalore based Hospital chain when I
talk to the owners of that they're
saying 10 lakhs is not a big deal you
know if you get some serious illness
today God forbid 10 lakhs is breach just
like that so again keeping all of that
in mind right keeping how quickly the
cost of healthare is rising how quickly
the cost of imported goods are rising um
it's not evident to me that anything
less than um anything less than 30 40
crores will allow you to have a decent
retirement for a comfortable retirement
my number
is 50 crores and I'm again I stress I'm
not talking about some luxurious
retirement I'm talking about a pretty
modest retirement suppose you tell me
sharan that n Boss 35 lakhs I don't need
net of tax I only need 17 lakhs even
then when you retire or when I retire
you need something between 20 to 30
crores now for most people watching the
show are they don't even have one CR in
their bank account right so if I were to
ask you a question from their lens that
let's say I'm a 25 early 30 year old
person making about 1 lakh rupees a
month and I want to achieve 10 crores by
the time I turn let's say 50 how should
I go about investing right so just to
just to keep it simple suppose you earn
6 lakhs a year and assume conservatively
that you can only save one lakh right in
a year one lakh in a year right for some
reason assume you start work at 25 26
right that first year you save a couple
of laks that itself at the by the age of
55 60 that Itself by the age of 55 60
will be close to 30 uh close to 60 lakhs
right two lakhs at the age of 25 become
60 lakhs by the time you're hitting
retirement because you've compounded at
15% kagar 15% compounded over 30 years
right now if a person keeps doing this
in a disciplined fashion right say
onethird of their take-home pay onethird
of their take-home pay they keep saving
through a 30-year career they will hit
the 10 CR number quite comfortably right
and and that's the hard part in savings
right you got to play a long game which
is why Rahul draid is my favorite
cricketer and you got to be you got to
be consistent in your savings
now let's assume you haven't done that
last 10 years you you're saying I'm not
a drait I'm going to be a Dy I'm going
to hit it out of the park in the last 10
years I'm going to finish strong well if
that's the case then in that last 10
years you could have save 30 40% of your
money and you got to do what I call
coffee can investing aim for investing
in companies that are going to compound
for you strongly in that last 10 years
of your life but the sooner you start
the better it is if you start at the age
sharan heg red coffee can investing
perfect interesting but s before we end
this conversation for someone to get the
benefits of your investing skills they
need to have minimum 50 lakhs to invest
in one of your PMS it's se's rule it's
not a marcela's rule SE rule that 50
lakhs has to be the minimum for a PMS so
but if somebody still wants to kind of
uh you know um get the benefits of an
investor like you what can they do like
what can they do to invest look I mean
we've tried to describe everything I
know in the books that we write right so
there are five books all available
online fantastic thank you so much s it
was wonderful wonderful discussing with
thank you so much for inviting I hope um
the audience were able to understand
most of the things we're talking about I
personally enjoyed it and it was quite a
deep Finance discussion usually we don't
go this deep you know because we think
that you know will it be too technical
for the audience I'm sure I'm sure given
that you explained things in a much more
Lucid manner than I did I'm sure it'll
find an audience thank you for much
thank you so much
[Music]
Weitere ähnliche Videos ansehen
Want to be Rich? Combine these ETFs for $100k FASTER
14 lezioni DI INVESTIMENTO che ti apriranno gli occhi da 66 LIBRI [per principianti]
Sashwath's Investing journey from 2019-2024... |Vinod Srinivasan| |Sashwath|
Investing Like a Millionaire | Dave Ramsey's Greatest Hits
Financial Independence Without Becoming a YouTuber
Become A Crorepati Before 35 | Full Breakdown
5.0 / 5 (0 votes)