Lessons To Be Learnt From Billionaires – Inspire To Become Rich
Billionaires have made money in many different ways over the years. Though investors have their unique and singular journeys through life, some of their investment choices are better than the others.
Arguably though, real wealth is accumulated by means of prudent equity investments and not by means of simpler techniques such as accumulating money in savings account or amassing cash.
Indian Equity Market – Lesson From Billionaires
Indian stock markets are doing very well presently. The Indian equity market has created enviable returns, especially when you compare these returns to the ones made by other asset classes. Even many foreign investors are buying stocks listed in the NSE and BSE.
The rich in this country have always preferred long-term investing in equity in the form of mutual funds and stocks. This is so as investing in equity for a period of more than three years guarantees a decent return on investment. In addition to this, equity investments with a tenure of more than one year ensure benefits on long term capital gains, with your returns being free of any tax.
As long as you stay invested in equity for a period more than three years, the returns are great despite the risk along with tax cuts. The sad part is that only about 2% of the people in this country indulge in equity investments. Investing in mutual funds at an early age is advisable as your money grows as you grow.
Billionaires are not born overnight and it takes decades for people to reach that high fiscal point. Starting early is the way to achieve your objective of amassing riches.
The right kind of research can fetch you a fine selection of mutual funds and stocks. Do not underestimate the power of compounding when it comes to equity investments in this country.
Lesson To Be Learnt From Billionaire – Warren Buffet
“Think Long-Term” – the best piece of advice from the CEO of Berkshire Hathaway. You only sit in the shade today if you planted a tree a long time back. His advice is to go for long-term yet stable investments and avoid short-term risky investments.
Lesson To Be Learnt From Billionaire – Michael Lee-Chin
According to this Jamaican-born entrepreneur, you should only purchase shares in a handful of high quality businesses. You should understand everything about them and ensure that these businesses are part of industries with long-term growth.
These businesses should be prudent with the use of debt and you should stick to these businesses for a long time.
Lesson To Be Learnt From Billionaire – Sam Walton
The successful founder of Walmart is of the opinion that if a large horde of people are investing in something, it does not mean that it is the most valuable investment. Trust your own research!
Lesson To Be Learnt From Billionaire – Chandrakant Sampat
A good example to emulate is Chandrakant Sampat, also known as India’s very own Warren Buffet. Sampat invested in mutual funds for a period of more than four decades with stocks from reputed companies such as Nestle and HUL. There was even a time when out of all his investments, equities held 70%.
He was of the opinion that true education is derived from markets and mistakes — the perfect piece of advice for a young investor who wants to be a billionaire in the future. Sampat carefully scrutinized every stock held by him and encouraged constant portfolio examination. One of his favorite quotes was that;
No one is poor in resources, just poor with their imagination. Courage is necessary to dream.
Conclusion – Inspiration To Be Billionaire !
Spend some time trying to understand equity investments. There are certain mutual funds that are risky and promise high returns such as high-yield stocks and bond funds. The investor with a moderate risk-appetite should choose balanced funds.
There is a plethora of options to choose from to create a diversified portfolio with the correct type of asset allocation. Learn from the people who have made money by means of calculated, well-researched and long-term equity investments.
All you need to do is dream!
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