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In stock market wealth is directly proportional to Health

    Yes, you read the title correctly, “In stock market wealth is directly proportional to Health.” Why Warren Buffet is one of the richest men in the world not only because of his wisdom, learning attitude or something else also because of his health. Only with proper health we can expect a long-life span and also, we can compound our wealth for a long long period.
    Early this morning I got the news of the death of legendary investor Big bull of Indian equity market Rakesh Jhunjhunwala. He was a great guy with a big heart. He was one of the Indian investors to have faith in the Indian economy in the early 90’s and dream for the future and invest in India. He was one of my gurus in my journey in this equity market. Always thought retail investors to be rational, respect the market and most importantly to accept my mistake and learn from it. 
    On his 60’s birthday almost all Indian business media houses interviewed him. In those interviews he accepts that he has some bad health habits and now he has suffered from that. He also asks all the young investors to focus on health along with the market. So, it is necessary to focus on our health and mainly on our habits. All things are getting compound other its good way or bad. A great book “The Compound Effect” has been written on this topic by Darren Hardy. We can know about this effect by reading Chapter 1: “THE COMPOUND EFFECT in Action” and Chapter 3: “Habits” of that book. One of the great books I have ever read and easily available on any Indian E Commerce website.


    Now let’s see how a good health and long-life span is necessary from an equity market prospective. If we see Warren Buffet’s age vs net worth graph 99% of wealth has added after the age of 58. In 2022, at the age of 91 his total wealth is 103 billion. One of the shocking facts is that he is the only man in this world to be in the top 10 richest men in this world from the year 1993. All this amount of wealth has been added to his portfolio because of his long-life span. One more interesting thing I came to know by reading one of the great books written on Warren Buffet “The Snowball '' by Alice Schroeder is that till now Buffett used a simple keypad phone and did not own a private jet yet.

But you will be surprised to know that Buffet owned 5.4% stake in Apple and owned a private jet company Net-jet. On 5th Aug 2022 he got a dividend of 1600+ Crores from Apple but did not buy a smartphone yet. It reflects his simplicity. Which was also common in Indian bill bull Rakesh Jhunjhunwala’s lifestyle. His dress is enough to express how simple lifestyle was. Living in the same flat for the last 25 years with his mother reflects how he feels proud to live with his mother. He has expressed that in many interviews.
    At the age of 62, Rakesh ji has a net worth of 40,000 crore. He started his journey with 5000 rupees in 1988 and made this huge wealth. His wealth has been compounded at a rate of 18% (As we mention) for the last 15-20 years. Now let's see if Rakesh ji lives for another 20 years up to 82 how wealth will be made at a rate of 18%.
   Here 
            Year = 20 
            Percentage Yield= 18% 
            Initial balance= 40,000 (Cr) 
            *without adding a single rupee after today


    It will become 1425312.62 (Cr) all are mathematically proven. All the major wealth will be created after the age of 70.
    So, it is necessary to maintain good health. Have some good healthy habits. Do some exercise and try to maintain a good healthy mindset. Having a good health market will take care of your wealth.
    Now the big question may arise here: what one will do with getting wealth after the age of 60-70. Buying a car at a young age, having EMI for that and looking rich wearing a good cloth will not help you in the long run (also uploaded a blog on how 10L can be made to 100 Cr in 30 years. If interested go and have a look at it). So, invest wisely and make some changes in the society. Wealth is not for our personal use or to stay looking rich. It is completely for the society. Have good health and enjoy the journey of this market.

-Shaishab
    
* Attaching Some great words by Rakesh Ji for my personal record 
    1. Be brave when others are fearful, and be fearful when others are brave. 
    2. know what you don't know. 
    3. Know risk, be ready to afford to lose. 
   4. Look for a large growing market, Competitive advantage in business, management, Challenges of scalability, look for low downside high upside opportunities. 
    5.Don't do analysis paralysis in your head. 
    6. The worst of the mistakes are made in the best of the time. 
    7.Success ko hath jodenge or failure ka mazak banayenge. 
    8. Hope for the best prepare for the worst. Prepare for the failure. 
    9. I am not afraid of making mistakes. But my mistakes were those I could afford. 
    10. Mistakes will happen but you must ensure that you keep them within limits you can afford. 
    11. Never invest at unreasonable valuations. Never run for companies which are in limelight. 
   12. You have got to catch the vital points. you are investing for the future which is uncertain. you cannot predict at a beyond point. 
    13. When there's doom and gloom, don't forget there's darkness before dawn. 
    14. Stock market are always right. Never time the market.

* Attaching my favorite Rakeshji’s interview. Which generally cannot be found on YouTube. Program was held in Pune in 2014/15. Maybe I have watched it more than 15-20 times. Every time I listen to it I find something new and special to the market. Rakesh Ji's Interview

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