How to apply the VED VYAS success formula for Investment Success?

 22^nd November 2021

How to apply the VED VYAS success formula for Investment Success?

Dear Fellow Travelers,

Namaste! Our post on Modi Ji’s move was super successful as expected. I will be happier – if the readers would find out better options to invest their time instead of discussing top guys. Believe me or not – you are downgrading the quality of your life by spending time discussing irrelevant matters. Let us go to the subject matter now.

What did Ved Vyas say?

You can read our post - Ultimate Success Formula given by VED VYAS in Mahabharat – for general understanding. Today we will stick to only investments.

The meaning of his slok is given as under: -

Do your KARMA continuously and wait for the time or Bhagya. You create your own Bhagya with your KARMA and results of the same will be given to you, death will not take away your efforts.

I revise it for investment.

Do your Investment continuously and wait for the Market to Notice. You create your own Bhagya with your Investments and results of the same will be given to your Generations, death will not take away your efforts.

Let us see in details Part Wise: -

Do your Investment continuously and wait for the Market to Notice

All may agree with this and they may say this is pure common sense. Nothing new and self-explanatory. Right.

Look at your Equity investment behaviour and performance in the last 30-20-10 years. Many are in this market for 40 years also. Where do you stand with your wealth creation from equities?

Your below-average performance is proof that you have NOT UNDERSTOOD the meaning of the SIMPLE formula.

You create your own Bhagya with your Investments and results of the same will be given to your Generations, death will not take away your efforts.

Buffett calls this SNOWBALL. You start making snowballs with some flakes and you go on adding it and the ball goes on becoming bigger and bigger. You may die someday but your SNOWBALL will be left for your generations or the society at a large if you DONATE.

How to practically understand this matter?

Say you are investing Rs.5 lakhs a year. Now you allow it to grow over a period of time. In the meantime, invest another Rs.5 lakh or more next year and the year next as your income grows up. This way your SNOWBALL will become bigger and bigger. The challenge is not to touch the accumulated amount and go investing yearly amount also. Very few are able to do this when it comes to investing.

How do Normal people follow this principle in practice?

Middle-class and even poor families follow this principle when it comes to educating their kids.

They go on investing for the school/tuition fees year after year. Their kids may fail or may pass with distinction in some years. But they keep on investing in educations. Many times, the parents will eat one time / wear the same clothes for years but they will keep investing in educations.

The results are – their kids join the MNC or get good jobs after 20-25 years and they enjoy the new standard of living. If the kids run away from their parents – then also the KIDS will enjoy a better standard of living.

So, this principle is not new to normal people but somehow, they don’t follow this when it comes to equity investing. This is the reason for their poor financial health.

How a Simple Technique can help you to follow what VED VYAS said?

Say you are investing Rs.1 lakh per kid in a year. Invest an equal amount in direct equities. As your expenditure increases on KIDS – increase your yearly allocation to investing also.

Look at both of them after 25 years. Now, you will have so much money that even if your kid runs away – your money will help you stay with the support of outside agencies.

If your SNOWBALL is big enough – your KID will only take care of you as he would want to enjoy your wealth after you are gone.

Advantage of the above technique: -

1.   The way you are investing for kids irrespective of his examination performance – you go on investing in the direct equities.

2.   You paid the school fees even without going to school in corona times.

3.   The way you pay for his EXTRA CLASSES or SUBJECT-wise TUITION classes after school – you also pay to the various consultant for your investments.

4.   Go on doing the above two steps till your KID becomes educated. This will be approximately 20-25 years from the birth of your child.

5.   After 20-25 years – you will have substantial wealth and financial independence. You will not have to depend on your job/kids for your retirement.

6.   The way you take out his school fees amount first from the income – you must take out your investment money from the income.

7.   When you link both of them together – your horizon of investing will become LONG TERM automatically. You will get all the advantages of long-term investing without fail.

What NEXT?

Marriage is a boring relationship. Kids raising is also a boring and stressful experience. That’s why the current generations are avoiding both. Long-term Investment is also an equally boring experience. There is no EXCITEMENT in investing – marriage and kids raising. But their long-term advantages are mind-blowing when compared with the periodic STRESS you might face.

All normal guys are 100% positive for MARRIAGE and KIDS. Just become Positive for investing also.

Have a Great Life Ahead.

 

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Live With Passion…Invest With Passion.

Hitesh Parikh.