My Best Investments: Lessons and Insights from Personal Financial Success
Investment decisions can be as impactful as they are varied. Through my journey, I have found that successful investments require a mix of insight, research, and sometimes a pinch of luck. This article will delve into my most rewarding investments, discussing what made them successful and the lessons learned.
The Power of Infosys
One of my best investments was in the company Infosys. Before the COVID-19 lockdown, I had a fixed deposit (FD) of 2 lakh rupees in the bank. When the market crashed by over 40%, I saw an opportunity rather than a threat. I decided to take a calculated risk and transferred the entire amount into Infosys at a price of 1,200. This decision paid off handsomely, as the stock appreciated by over 40% within a year. Additionally, it has the potential to yield bonuses in the future. Currently, I am holding onto it for a long-term horizon.
The Short-Term Success with HDFC
Another significant investment was in HDFC Bank. I diversified my approach with a short-term strategy, gradually investing in HDFC over several months. At times, I felt impatient as the stock went down continuously, but I believed in its potential. Eventually, news about a merger between HDFC Bank and HDFC Ltd. came, and on that day, my investment turned into a profitable one. Profits exceeding 50,000 rupees led me to book profits at 47,000 rupees. However, the next day, the stock began to fall, reminding me of the volatility of markets.
Quality Over Quantity in Stock Selection
Apart from individual stocks, I have found that investing in equity stocks has been highly profitable over the years, averaging a return of 15%. I have developed a strategy for selecting stocks based on certain criteria:
The market capitalization should be at least Rs. 1000 crores. The stock's price should be in an upward trend for at least the last 8 years. Ensure that the stock is not involved in any legal issues.These principles have guided my investment decisions and have been instrumental in my financial success.
The Invaluable Returns of a Harvard Education
The best investment I have made was not in stocks or real estate but in the time and money spent at Harvard. Financially, it was a modest expense, made possible through financial aid provided by the university to all students. What Harvard offered was far beyond financial gain. An education at Harvard expanded my intellectual capacity, giving me a second brain to think with.
The strategic advantage in terms of employability and having others take my suggestions seriously cannot be overstated. Even a year or two at Harvard could change someone's life, as evidenced by figures like Bill Gates and Mark Zuckerberg, who never graduated but attribute a significant portion of their success to their time there. Harvard alumni now occupy various influential roles, from business leaders to political leaders, reflecting the value of this investment.
As the saying goes, 'It is better to put money in a library than in a purse.'