Kaleem's Blog

The businesses having limited capital requirements can either be financed individually or the required money can be pooled from a small group of people i.e. family and friends, in exchange for a share in the business. These are small businesses across various sectors and this financing framework is called private equity.

Investing, especially in the stock market, is a tricky affair. One has to study it, in detail, in order to understand it well. The understanding is also required to be backed up with emotional stability. Some of the big names, in this field, are Benjamin Graham, Phillip Fisher, John Templeton, Warren Buffett, John Bogle, Ray Dalio, Peter Lynch, Howard Marks, and Joel Greenblat who have written books on investing. One can read these books and become wiser on the subject. One may also listen to their speeches and interviews that are available on Youtube. However, in this blog post, I have made an effort to present 10 best quotes on investing from some of these heavyweights and a few others. The purpose is to share with you their wisdom on investing in a condensed form.

This article is for those who have made up their mind to invest some money in the stock market directly. They do not prefer mutual funds. They are going to be in the market for the long haul and are not going to speculate. They are looking for a method to identify good businesses and become their partners. What they expect from this undertaking is to preserve their capital, be able to beat inflation effectively, and also compound their wealth at a decent rate. In due course of time, when their portfolio has grown to become big enough, they might have an option to live off the dividend income during their retired life.

If and when you decide to invest whatever percentage of your capital in equities (shares or stocks), you have a fairly wide variety of options to choose from. However, in this blog post, I will focus on public equities and will compare the two possible approaches i.e. direct investment in equities or through mutual funds. Both are viable options with their advantages and limitations. The purpose of this discussion is to see what suits whom.

Some 400 years ago, the first stock market was created in Amsterdam, Netherlands. Dutch East India Company became the first publicly-traded company in 1611. The New York Stock Exchange was established in the late 1700s. The idea of the stock market has played a pivotal role in the evolution of the business to where it stands today. Especially, conducting big business was not possible without the existence of stock market.

By the way, just have a look at the featured image on top of this post and read on. I will talk about it at the end of this article.