Money Tree
What is the best investment product ?
By Ranjan Varma
In an earlier Moneytree column, I worried about people asking for the best investment ideas without learning the basics and getting duped by agents and brokers. I refrain from recommending one product or the other without understanding the situation and profile of the investor.
However that is going to change in this column today. I am about to tell you the best investment that you can make in your life!
In today’s world, the greatest wealth has been created by first time entrepreneurs like Steve Jobs, Warren Buffet, Bill Gates, Facebook’s Zuckerberg, Google’s Sergey Brin and Larry Page/L N Mittal, Azim Premji, Narayanan Murthy and the list can go on and on. The wealth has not been passed on by inheritance and inheritance has not generated new wealth.
You might be getting scared that I would suggest you to become like the people mentioned above. No, these great people can not be replicated and I am not suggesting that in any way.
But you will surely agree that the best investments are those where value is created and innovation is the mantra. If you are lucky enough to realize that you have an important gift that you can share with the world, investing in your own idea would be the best investment that you will make in your life.
But all of us do not “think” that they are gifted with such talent! The best investment for us lesser mortals would be investing in such great men!
Mint report about investors in Steve Job’s business. Excerpts:
Each of these innovations has resulted in enormous gains for investors. Shares of Apple have gained at a compounded annual growth rate of 17.25% since the company’s initial public offering about 31 years ago. This is about the rate at which the Nasdaq Composite index has risen during the same period, and considerably higher than the 7.3% annual return of the S&P 500 index.
But Apple’s major gains have accrued since Jobs’ return to the helm in July 1997, about 12 years after he was fired by the company he had founded. Since then, the company’s shares have gained at an annual average rate of 39%, at a time when the S&P 500 has grown at an annual rate of just 1.5%. Also note that during this period of a little over 14 years, the MSCI Emerging Markers Index has risen at a rate of only around 3%.
The problem is you need to find them when they are not yet successful. How do you find such businesses/companies when they are born!
I said that I am sharing the best investment ideas in this post. I did not say that it is easy!
Do send me your thoughts/response on my email id: ranjan at ranjanvarma.com
Archives
—————————————————————————————————————————————————————————–
Ranjan Varma, Founder, RupeeManager believes that learning is a continuous process and does not agree with the adage that you can’t teach an old dog new tricks. Approaching the age of 44, he left his job in a PSU and now is a blogger and editor of a Personal Finance website , is building financial management software and conducts RupeeCamps. His writings are also available on :http://ranjanvarma.com
He thinks it’s possible to start a new business after 40, run a marathon at 50 and re-wire your brain after 60. It’s not easy and that’s why it’s worth doing.
————————————————————————————————————————————————————
[...] Here’s the link [...]