Best Personal Finance & Success Tips From Indian Billionaires
Want to know the investment philosophy of billionaires? Read this blog to access the top 5 investment quotes and wealth creation approaches of the Indian elite like Mukesh Ambani, Rakesh Jhunjhunwala, Ramesh Damani, and more.
July 6, 2021
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So you’ve decided to become a better investor and get inspired by Indian billionaires! Lucky for you, we’ve compiled the best investment quotes and knowledge from India’s elite that can inspire you to create wealth the right way.
1. Patience Is Key - Mukesh Ambani
It is important to remember that there are no overnight successes. You will need to be dedicated, single-minded, and there is no substitute to hard work.
The quote above by Mukesh Ambani is important and useful because it stresses the importance of a long term outlook when it comes to creating wealth. Long term growth has been steadily observed in several indices, stocks, and mutual funds.
But the journey from point A and point B is not always easy as short term fluctuations are common in the market.
Investor behaviour may be negatively influenced when the market dips. That’s when your patience may be tested. After all, nobody wants to lose their hard-earned money.
Take the stock chart above, for example. March 2020 is infamous for the official onset of the pandemic and the subsequent fall of stock markets from around the globe.
It would have been understandable for investors to sell their RELIANCE stock. But patient investors would’ve reaped the rewards of staying locked-in. It’s currently trading at 2x than March 2020.
As they say, wealth creation is a marathon, not a sprint. Cube gives you access to experts who can help you invest for the long term. Download Cube to know more.
2. Research Before Investing - Rakesh JhunJuhnwala
Never put your hard-earned money without proper research. Never invest according to ‘Stock tips’.
The digital age is such that retail investors have access to plenty of noise from armchair experts and supposed investment gurus who have no legible track record.
Getting your investment advice from such “experts” may end in disaster. For example, would you trust your life with a doctor who claims he’s one without any degree or track record?
That’s why Rakesh JhunJuhnwala’s quote is important. It emphasizes the need for financial diligence and market analysis. Truth be told, both of these aspects are hard to master.
In fact, most Indian investors don’t have access to the knowledge that’s required to pick the right stock or mutual fund. It’s not like school and college curricula include lessons on financial freedom.
One potential way to research stock is to read the financial report published by the company. Investors tend to look at important metrics like net profit, year on year growth, P/E ratio, earnings per share, etc.
At Cube, we leave the job of recommending investments to real experts. For example, Wealth First, Cube’s mutual fund advisor, has a track record of beating Nifty by ~50%. Get Mutual Fund Advice
3. Buy Quality, Don’t Time The Market- Ramesh Damani
Time spent with high-quality businesses is more important than timing the market.
Ramesh Damani echoes the philosophy of value investing that’s been popularized by several famous billionaires like Warren Buffet. Let's try to understand the meaning of part one of the quote.
A quality company generally has a solid balance sheet with key markers like higher revenue and little to no debt. However, the price of the share may not reflect the actual value of the business.
That's because investors haven't realised the potential of the business. Maybe they're trying to time the market, which brings us to part two of the quote - never try to time the market.
It may be a cliche amongst the investing community to throw that phrase around but it has merit. Trying to time the market is incredibly difficult and even the best of investors may not be able to do it.
Another reason to not time the market is the opportunity cost. The more days you wait for the “correct” time to invest in a stock or fund, the more likely it is that you're missing out on potential gains.
Here's a clear example of time spent in the market leading to more gains. INFY was down from ₹143 in 2000 to ₹34 in 2001. Today, its value is ₹1,583.6.5
Your investment may potentially have a higher chance of growing if it’s a quality asset that you bought based on the reliable advice of industry experts like Wealth First on Cube Wealth. Get Cube Now
If I’ve one thing to say to retail investors it’s diversify, maintain some kind of balance in your portfolio.
Balance is important in life as well as investing. The classic case of putting all eggs in one basket may mean potentially missing out on gains from multiple revenue streams and of course, more risk.
Instead, diversification allows you to counter or overcome the temporary shortcomings of one asset with another. Diversification also has another purpose. It can help you prepare for different timeframes.
For example, equity as an asset class is known to be volatile over the short term (0 to 3 years). However, it has the potential to deliver lucrative gains over 3 to 5+ years.
That's why investors generally don't use equity instruments to build an emergency fund for the immediate future. Instead, they invest in a liquid fund or debt fund for the short term.
Apps like Cube help you diversify your portfolio with the bucket philosophy that sets you up for success across asset classes and timeframes. Read more about it here
5. Don’t Follow The Herd - Radhakishan Damani
Radhakishan Damani's investment philosophy ties into Ramesh Damani's quote of investing in value and not following the herd. Each individual is different, so are their investment goals.
One person's idea of a vacation may be rappelling in the Grand Canyon while the other may want to hang out on a sunny beach in Goa. Following the herd, however, is deep rooted in the human psyche.
Coming across this phenomenon in the stock market is common. Investors may rush to buy a stock because a certain investment guru or Twitterati think it's "hot"... until the bubble bursts.
Just because a bunch of people are investing in a stock or cryptocurrency wouldn't necessarily mean that it is best for you. Rather, you must understand that your investments will be a mixture of
Cube Wealth can help you understand your risk profile and suggest assets that can meet your investment goals accordingly. Download Cube to know more.
Fun fact: Billionaires Radhakishan Damani and Ramesh Damani are not related.
How To Become An Intelligent Investor?
The 5 top quotes and philosophies of Indian billionaires like Mukesh Ambani may have inspired you to get started with your investment journey or become a better investor.
But you must remember that becoming financially free takes patience and research. Moreover, knowing your own risk profile and financial goals is important to become a better investor.
Furthermore, you must be cautious of people who promise you overnight riches. Such a thing doesn't exist unless you win the Texas Powerball lottery.
An app like Cube can help you pick the right assets for you. Cube gives you access to financial advice from leading industry experts who have outperformed the market for decades. Download Cube to know more
Shriram is a Consultant at CubeWealth. He has developed cutting edge IT products for over 2 years before turning to his passion for the written word. His love for philosophy, developing products, and empowering people through quality content is what got him to CubeWealth.
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on stock picking, poring over excel sheets, financial news, analyzing market trends, tracking the Sensex, researching company fundamentals, comparing mutual funds, reading financial reports, trying to predict the future & losing your sanity!