Investment Fundas

Read about a new name in the investment world - Mohnish Pabrai. Apparently, this guy along with his partner bought themselves a dinner with investment guru Warren Buffett in a charity auction for $650,100. This is the first time I am reading about Mohnish. He is self -confessingly, a "shameless clone" of Warren Buffett. Apparently, this software engineer -turned- investment manager had applied to Berkshire Hathaway and was rejected by Buffett who claimed that he doesnt need any assistant as he preferred to work alone. Mohnish, like Buffett, also works alone and even says he takes naps while working in the afternoon. Now how easy-going and confident can one get?
I always believed in the power of compounding money rather than simply adding. I have always advised people about the virtue of long-term returns in equities. However, this doesnt apply to people with a low-risk appetite or a zero tolerance level to the short term vagaries of the market. It is not that I have not entered the capital markets with a short term view. But I have made some decent returns in the longer term than in the short term. People should realise that you can enter the equity markets only during your prime time and not when you are middle-aged and about 40ish. Also the most important thing is not to back out when you have burned your fingers. You always learn when you make mistakes !! So investing in equities is not for the feeble hearted. Another important thing is to keep abreast with the financial world and understand businesses. Read financial newspapers and magazines and watch business news regularly. I have personally seen the consequences of such disciplined investing. Remember, a little more money always counts! Do not put all your savings in the markets at one go. Invest regularly starting with small amounts and later on when you get the hang of it, you can increase the allocation. Invest according to your risk profile. It really helps when you find yourself slightly richer than what you would have been.

Rule of 100:- The thumb rule for investors is the rule of 100. Say, if you are 30 years of age, can allocate 70% of your investible towards equities and the balance 30 % towards safe investment options.

Its never too late !!!!!