THIS IS HOW YOU BUY FREEDOM TO DO WHAT YOU WANT

Stevan Noronha - Freedom Blog

I see people all around, employed in well-paid jobs, but not really happy with how their professional life is heading. They are looking for a change.

Most common reasons – problem with their bosses, office culture being a misfit, money problem, need promotion, wanting to start own venture, stagnation.

The logical solution would be to quit and move on or do something else. However most don’t change. They CHOOSE to continue and accept the misery of what their current job has to offer. They learn to adjust themselves and over a period of time accept their fate.  

THE MOST IMPORTANT THING WE FORGET WHEN TAKING A HOUSE LOAN

So I have this friend, who, purchased a house worth 1.5 crs, a year ago, and for the same, took a loan of 1.2 crs. He worked for an MNC and getting the loan, was not difficult, since his wife too was earning well.

THE MOST IMPORTANT THING WE FORGET WHEN TAKING A HOUSE LOAN

We met a month ago, and he was proudly showing off that his house is now worth 1.7 crs already, due to appreciation over the last one year, therby making a neat 20 lacs in profit.

He must have calculated his profit by subtracting the current value of his property, less the cost of the house (as per him it was 1.5 crs). I think he was wrong.

How I lost everything in 2008 stock market crash – Three lessons learnt.

Right after business school, i started investing in equities as I believed it to be ideal for long term capital appreciation. I started with blue chip stocks –  first investment being the TCS IPO in 2005 and so on. Over the next one year two things happened which changed my investing outlook.

Lessons in STock Market - Stevan Noronha

One, my risk appetite grew considerably, as I saved more and got into a better paying job. Second, I had this network of friends who were finance professionals at stock broking firms.  We used to meet up after office hours and discuss on stocks that would outperform in the near future.

Due to these two reasons since mid 2006, I started investing aggressively in small and mid caps based on information within our network. In our group, investing in large caps and mutual funds was looked down upon. Something fit for beginners. We wanted more thrills and of course more profits. We understood the risk of investing in small and mid caps, but with  good industry exposure, we were more confident and plunged heavily into this. In fact by 2007, my stock portfolio had 80% of these small and mid cap stocks.