Vishal Khandelwal

The Poison of Privilege: Investing Lesson from the 18th Century Rich

Welcome to the latest issue of ‘The Journal of Investing Wisdom’, where I delve into the thoughts, reflections, and readings that have recently captured my attention. This journal serves as a window into my contemplations and the resources that inspire and inform my journey as an investor. I hope you like what you read below. If you are new here, and wish to get insights and ideas like these straight into your inbox, please click here to become a member.

What I’m Reading

The Poison of Privilege

In his latest post titled A Few Little Ideas And Short Stories, Morgan Housel shared this –

Demographic historian T.H. Hollingsworth once published an analysis of the life expectancy of the British peerage. It showed a peculiar trend: Before the 1700s, the richest members of society had among the shortest lives – meaningfully below that of the overall population.

How could that be?

The best explanation is that the rich were the only ones who could afford all the quack medicines and sham doctors who peddled hope but increased your odds of being poisoned.

I would bet good money the same happens today with investing advice.

Morgan’s concluding thought about investing advice following the same path as quack medical advice is hilarious but also cautionary. The parallel drawn between the wealthy of pre-1700s Britain, who suffered shorter life expectancies due to their ability to afford harmful treatments, and today’s investors, who may be swayed by complex yet flawed financial products and strategies, is striking. In both cases, the very resources that should have provided an advantage instead became a source of harm.

[Read more…]

My 8-Point Stock Analysis Checklist

Online Value Investing Workshop – August 2024 Cohort: I recently opened admission to the August 2024 cohort of my Online Value Investing Workshop, which has already been taken by 1800+ students ever since I launched it two years ago. Here is what you get when you sign up for this workshop –

30+ hours of pre-recorded lectures and Q&A videos
60+ questions answered in the Q&A
Live Q&A session of 3 hours on Sunday, 25th August 2024 (7 PM IST Onwards)
One-year unrestricted access to the entire content
7 readymade screens to filter high quality stocks (and avoid the bad ones)
Bonus 1: Stock analysis spreadsheet (otherwise priced at ₹1999)
Bonus 2: Rethinking Financial Freedom Masterclass + The Art of Investing Masterclass (otherwise priced at ₹1998)

I am accepting 100 students for this cohort, and more than half the seats have been booked by now. Click here to read the details of the workshop and sign up.

Identifying stocks is not an easy task. You are not just ‘picking a stock’ but ‘investing in a business’ that is a complex entity driven by multiple variables.

The complexity of the task is what keeps many investors from analysing businesses who instead depend on easily available tips from strangers, especially those handing out stock names for free on social media.

[Read more…]

Rediscovering Hope in the Face of Loss

I have started this new weekly newsletter – The Almanack of Good Life – to share all that I am reading and reflecting upon about living a good life. It’s a new attempt, but I hope to take this far. In this age of constant information overload, I’ve found immense value in taking time to pause and reflect upon meaningful insights about life. This newsletter is my way of sharing that journey with you.

Each week, I’ll curate a selection of thought-provoking ideas, inspiring quotes, and practical wisdom I’ve encountered in my readings and personal reflections. My goal is to create a space for us to explore together what it means to live with purpose, kindness, and fulfilment. I look forward to your kind support.

[Read more…]

Warren Buffett’s $1 Test: A Simple Formula to Find Quality Companies

Warren Buffett’s $1 Test

One of the critical choices each business faces at the end of every year is whether to give its profits back to the owners (that’s what dividends are) or retain some money to grow.

Now, if the business is keeping that money, you as an owner better make sure the managers – the capital allocators – are using it well.

But how do you test for that?

[Read more…]

The $200 Million Lesson: Raising Money-Wise Kids in a World of Excess

30+ hours of pre-recorded lectures and Q&A videos
60+ questions answered in the Q&A
Live Q&A session of 3 hours on Sunday, 25th August 2024 (7 PM IST Onwards)
One-year unrestricted access to the entire content
7 readymade screens to filter high quality stocks (and avoid the bad ones)
Bonus 1: Stock analysis spreadsheet (otherwise priced at ₹1999)
Bonus 2: Rethinking Financial Freedom Masterclass + The Art of Investing Masterclass (otherwise priced at ₹1998)

I am accepting 100 students for this cohort, and more than half the seats have been booked by now. Click here to read the details of the workshop and sign up.

Raising Money-Wise Kids in a World of Excess

I have been thinking a bit more about money lately than I usually do. Not just because my son asked for a ₹10,000 pair of sneakers last week (he does not ask much, and so this surprised me a bit), but because I have been wondering if I am doing this whole “teaching kids about money” thing right.

In the last edition of The Almanack of Good Life, I wrote about the importance of health and time over money and recounted the story of William Vanderbilt, who believed the burden of managing his father’s empire had broken his health.

[Read more…]

The Art of Stillness

[Read more…]

Charlie Munger on Patience, Wisdom, and the Power of Changing Your Mind

An announcement before I begin today’s post.

I have opened admission to the August 2024 cohort of my Online Value Investing Workshop, which has already been taken by 1800+ students ever since I launched it two years ago. Here is what you get when you sign up for this workshop –

30+ hours of pre-recorded lectures and Q&A videos
60+ questions answered in the Q&A
Live Q&A session of 3 hours on Sunday, 25th August 2024 (7 PM IST Onwards)
One-year unrestricted access to the entire content
7 readymade screens to filter high quality stocks (and avoid the bad ones)
Bonus 1: Stock analysis spreadsheet (otherwise priced at ₹1999)
Bonus 2: Rethinking Financial Freedom Masterclass + The Art of Investing Masterclass (otherwise priced at ₹1998)

I am accepting 100 students for this cohort, and the first 30 can claim a special early bird discount on the registration fee. Click here to read the details of the workshop and sign up.

What I’m Reading

Wit and Wisdom of Charlie Munger

I am a loner and have worked alone for almost the whole of my time at Safal Niveshak, which is for the past 13 years, but I understand the importance of having the right partner. For me, that partner is my wife. 🙂

But if you are looking to find a good partner for work, you may want to look into the 60-year long partnership of Warren Buffett and Charlie Munger, which sadly ended late last year with the passing away of Charlie.

[Read more…]

A Yogi’s Rules on Money and Happiness

What I’m Reading

A Yogi’s Rules on Money and Happiness

I read an article recently written by Paramhansa Yogananda – of Autobiography of a Yogi fame – during the Great Depression in the US. It was titled Creating Your Happiness.

Not surprisingly, the principles laid out by Yogananda remain relevant even today, 90+ years after he wrote about them.

You see, the old rules of life or money never change and they only become tough on you when you ignore them. Like these golden rules laid out by Yogananda (the emphasis is mine), which if you continue to ignore, may make your life tough.

Over to Yogananda.

[Read more…]

The Almanack of Good Life: How Life Flows

I am starting this new weekly newsletter – The Almanack of Good Life – to share all that I am reading and reflecting upon about living a good life. It’s a new attempt, but I hope to take this far. In this age of constant information overload, I’ve found immense value in taking time to pause and reflect upon meaningful insights about life. This newsletter is my way of sharing that journey with you.

The Japanese Ensō symbol in the banner above represents wholeness and the cyclical nature of life, while also reminding us to embrace the imperfection and the beauty of our incompleteness. Its minimalist design reflects the Zen principle that less is more. It’s like a visual way of saying “life is a journey, not a destination” and “perfection is overrated.”

[Read more…]

The Psychology of Investing #1: Conquering the Investor’s Worst Enemy

The Sketchbook of Wisdom: A Hand-Crafted Manual on the Pursuit of Wealth and Good Life

Buy your copy of the book Morgan Housel calls “a masterpiece.” It contains 50 timeless ideas – from Lord Krishna to Charlie Munger, Socrates to Warren Buffett, and Steve Jobs to Naval Ravikant – as they apply to our lives today. Click here to buy now.

The Internet is brimming with resources that proclaim, “nearly everything you believed about investing is incorrect.” However, there are far fewer that aim to help you become a better investor by revealing that “much of what you think you know about yourself is inaccurate.” I am beginning this new series of posts on the psychology of investing, where I will take you through the journey of the biggest psychological flaws we suffer from that causes us to make dumb mistakes in investing. This series is part of a joint investor education initiative between Safal Niveshak and DSP Mutual Fund.

Why oh why are human beings so hard to teach, but so easy to deceive.

~ Dio Chrysostom (Greek philosopher and orator, 2nd Century)

Success in investing doesn’t correlate with I.Q. once you’re above the level of 25. Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble in investing.

~ Warren Buffett

Anne Scheiber was 51 years old when she retired from her job as a low-level auditor from the American Internal Revenue Service in 1944. She never earned a salary of more than $4,000 per year, and although she was an exemplary worker, she never received a promotion. Maybe, because she was a woman and a Jew, the lots that were discriminated against in the workforce in general in the west during that period.

[Read more…]

The Poison of Privilege: Investing Lesson from the 18th Century Rich

Become a wiser investor in just 5 minutes

What I’m Reading

My 8-Point Stock Analysis Checklist

Become a wiser investor in just 5 minutes

Rediscovering Hope in the Face of Loss

Warren Buffett’s $1 Test: A Simple Formula to Find Quality Companies

Become a wiser investor in just 5 minutes

The $200 Million Lesson: Raising Money-Wise Kids in a World of Excess

Become a wiser investor in just 5 minutes

The Art of Stillness

Charlie Munger on Patience, Wisdom, and the Power of Changing Your Mind

Become a wiser investor in just 5 minutes

What I’m Reading

A Yogi’s Rules on Money and Happiness

Become a wiser investor in just 5 minutes

What I’m Reading

The Almanack of Good Life: How Life Flows

The Psychology of Investing #1: Conquering the Investor’s Worst Enemy