Advait_Arora

I 💕 to ✍️ on :
#Money💰
#Investing💵
#Compounding🌿
#Stocks📊
#Finance 📶
Student of markets since 2001,
Some multibaggers, many lessons, always learning.

[Advait_Arora @DrEllis2012]

Stock Return = Earnings Growth + PE Change + Dividends
Lets say a firm has been consistently growing profits at 20%. But if we bought it at 60X PE & the market later gives it only 30X, our returns can look very different (read pathetic) from the business growth.
This is why I

[Advait_Arora @DrEllis2012]

Salary covers your basic monthly expenses.
Savings helps you create
surplus money helps you build investments like SIPs & Gold.
Investments compound & grow into longterm wealth which creates passive income that pays for your lifestyle !

Wealth = Freedom !

[Advait_Arora @DrEllis2012]

₹1 lakh becoming ₹10 lakh at 25% CAGR takes nearly 10 yrs.

Don't we all like the idea of finding a 10X stock 🎉

But when you actually look at the journey, 10 years is a long time. There will be bad quarters, corrections and many boring periods, which markets call

[Advait_Arora @DrEllis2012]

भीड़ confidence देती है,
conviction नहीं।

When a lot of people agree with your stock idea or it is widely discussed on social media & there is consensus on the story, maybe it makes you feel safer and smarter.
But I believe that markets don't reward safety of opinion, instead

[Advait_Arora @DrEllis2012]

₹10 lakh at 15%
for 10 years =
~₹40 lakh

₹10 lakh at 15%
for 20 years =
~₹1.64 crore

Same money, same return.
Only difference = Time. ⏳

👉 Formula of compounding =
Capital × Return × Patience

[Advait_Arora @DrEllis2012]

20% profit on ₹50,000 = ₹10,000
5% profit on ₹5,00,000 = ₹25,000

Yes, % return matters, but invested capital matters more. 💸

👉 Formula of wealth =
Bigger Capital × Decent Returns !

[Advait_Arora @DrEllis2012]

"Trading sardines"
vs
"Eating sardines"

​If you are putting your hard earned money into the market... please read & understand this very carefull. A very subtle but powerful truth about modern investing !

[Advait_Arora @DrEllis2012]

You may think you are well diversified because no single stock is above 8 to 10% of your total portfolio value.
But this can still be misleading ! Yes !
Suppose you own 20 stocks, but 7 to 8 of them ultimately depend on the same housing cycle, capex cycle or interest rate

[Advait_Arora @DrEllis2012]

शून्य की अपनी कोई कीमत नहीं होती, लेकिन उसके बिना गणित अधूरा है।

Put 0 before 1 & it stays 1.
Put it after 1 & it becomes 10.

The zero is the same but when rightly places it gives a completely different result !

Life, money, people, timing...placement matters more than we

[Advait_Arora @DrEllis2012]

@blacksportsinc Nice!

[Advait_Arora @DrEllis2012]

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[Advait_Arora @DrEllis2012]

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[Advait_Arora @DrEllis2012]

@bamayye How do I learn how to do so?