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