Wednesday, December 30, 2020

Want to double your money every 2 years with safest investments?

 Here is the magic

  • Buy companies which are going to be there for next 30 years, make a list
    • e.g: Consumer Products: Gillette, Johnson and Johnson
    • Banks like Bank of America, Chase, State Bank of India
    • Finance Toll agents like Moody's
    • Payment Toll agents like Visa, Master, Amex
  • Make sure you understand the company, questions to ask
    • Do i understand the product of the company, have i tried and loved it?
    • Do you use it regularly, how about your family friends?
    • Does the company has favorable mind share in its customers?
    • What is the competition around those products, quality ?
    • Would you prefer the product if they increase the price by 5% tomorrow?
    • if answer is YES: that's your stock pick
  • Now wait for the right price multiple and the scoop it
    • e.g: 2000 crisis, 2008 crisis, 2018 Dec drop, 2020 march pandemic drop
  • 10% growth year over year compounded is 17 times the original principal
    • Essentially double every two years