I am writing this series of letters on the art of investing, addressed to a young investor, aiming to provide timeless wisdom and practical advice that helped me when I was starting out. My idea is to help young investors navigate the complexities of the financial world, avoid misinformation, and harness the power of compounding by starting early with the right ideas and steps. This series is part of a joint investor education initiative between Safal Niveshak and DSP Mutual Fund.
Dear Young Investor,
I hope this letter finds you well and in high spirits.
You remember my uncle whom I had introduced in my previous letter, who taught me that wealth is not about accumulating money but about living a life of purpose, freedom, contentment, and fulfilment?
Well, a few years into his guidance and once I had started earning money, I remember asking him about the ‘operating manual for money’ that did not exist – and still does not – unlike most things in life that come with a manual on how to operate them.
Think about it. When you buy a new gadget, it comes with a booklet explaining how to use it, maintain it, and even troubleshoot it when things go wrong. But when it comes to money, something we use every day and crucial to our lives, there is no manual handed over. You are left to figure it out on your own, often learning through trial and error, sometimes at a great cost.
[Read more…] about Letter to A Young Investor #2: The Money Manual