Views on Life & on Equity Investing

Wonder, Wealth & Abundance

FD vs Shares, Poor vs Rich, Middle Class thinking vs Entrepreneurship

with 3 comments

Figure: Middle class suckers, click on image to magnify their folly

I wanted to show you visually what I learnt from Peter Lynch. You don’t want to be guy on the left, poor person having some spare change for Bank. Bank has expenses, employees, overheads etc also dividends for shareholders ! They forward your money to businesses or other individuals in need.

Your job as an investor is to find the business on right hand side that will not only avoid going bankrupt, but infact is strong ! That strong business is earning more than 20-30% per annum on invested capital. If you cannot find that business or are afraid that stock market volatility reduces the share price of business to 50% or 40% then continue to be the guy on left.

Written by amitdipsite

December 4, 2010 at 8:04 pm

Posted in Uncategorized

3 Responses

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  1. And add inflation and taxes to the equation, the guy on the left starts making negative returns.

    MG

    December 5, 2010 at 6:28 am

  2. Hi Amit,

    What are your views on Firstobject Technologies as of now?

    Ansh

    December 7, 2010 at 3:53 pm

  3. Hi Ansh,

    I would personally not buy any Education company, the space is getting crowded and is very fluid. That's not to say, that some won't be multibaggers in this space. But its hard to tell which ones ? I would stick to big two only if I wanted to play education coz size of opportunity is huge. Everonn and Educomp. Although I don't have any.

    Multibagger

    December 7, 2010 at 7:18 pm


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