Dr. Rawal's Definitive Guide to Financial Independence: Retire Early, Retire Rich by Rawal Dr. Tejinder Singh

Author:Rawal, Dr. Tejinder Singh [Rawal, Dr. Tejinder Singh]
Language: eng
Format: epub
Published: 2020-10-14T16:00:00+00:00

Chapter 19

Money Matters

I made a quick search for "make money fast" on Amazon.com. It returned over 2,00,000 results. Go through any of those 2,00,000 books each one would give a magic formula that may make you a millionaire, with little efforts. Just follow the formula, and money will keep pouring in. I wish life was that simple.

If you are looking for making money fast, this book is not for you. This book is not for people in a hurry. It is for people willing to learn the principles they can apply and make their investment grow by taking advantage of market idiosyncrasies and the power of compounding. This book is for those who will understand investing as a life-time pursuit, which will help them realise their dreams, and create a stable source of income and wealth.

I did not search that on Google, for I can imagine, if over 2,00,000 books talk about making money fast, how many websites and blogs must talk about them. In the world of big data analytics and information overload, so much information is available to us by the click of the mouse, or a touch of the screen (or sometimes, "Hey Siri, can you tell me….") that it becomes impossible to sift the usable knowledge out of the heap of incongruous data. One thing that has not improved in the on-line real-time era is common sense. It continues to be uncommon and in some ways has diminished. It seems to lose out as people gain more and more of technical skills, but do not understand and appreciate the larger picture.

There are some equipped with common sense, the insight to think, and that trait is common to all successful investors. Contrary to what many of us would believe, you need not be an Ivy League graduate with a degree in finance and economics to attain Financial Independence.

Warren Buffett has always maintained that IQ is not the single defining factor in investment success. "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with a 130 IQ. Rationality is essential.", says Buffett. Even if you have an IQ of 160, Buffett says you should just "give away 30 points to somebody else" because "you don't need a lot of brains to be in this business."What you do need is emotional stability," he adds."You have to be able to think independently."

Charlie Munger says, "It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent. There must be some wisdom in the folk saying: 'It's the strong swimmers who drown.' " Strong swimmers often get into trouble by swimming into deeper waters. Weak swimmers stay close to the shore. We are not interested in complicated mathematical equations that are designed to exploit short term windows in the market to make quick money.

Money is abstract and indifferent

You cannot touch money. It is abstract. You can touch a gold coin, or a Rs 100 note.

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