Thursday, December 27, 2012

How to become a Millionaire in 20 Years from Now

Two highly rated books on how to build wealth are  Millionaire Teacher and Rule # 1 .  The books represent two different investment approaches that fit different types of people.  The first book recommends a more  passive approach in which people should focus on buying Index funds periodically,  and if necessary, invest 10 percent in individual stocks.  The second book, recommends that, just like Warren Buffet,  investors cam devote some time to identify excellent opportunities to buy great businesses (stocks) which has Meaning to them, businesses with  great Management that has a vision (not those greedy ones who are there only to rob the company), business with a competitive advantage (Moat) so that they can protect their revenues and profitability, and most important, buy their stock when everybody is selling, i,e, buy them with a very large Margin of Safety - 50 percent.   Yes, with the information and tools available now for free,  it is possible for the small investor to find such businesses and become rich after 20 years of investing with discipline and knowledge.


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