Investment Ideas to explore

1. Want to beat the Sensex? Just buy stocks the index discards.

http://www.livemint.com/Money/ADwgLwRoIzRfdh3sCH1pJP/Want-to-beat-the-Sensex-Just-buy-stocks-the-index-discards.html

2. Coffee can portfolio

3. 

https://economictimes.indiatimes.com/wealth/invest/11-financial-moves-that-will-help-you-make-money-in-2019/articleshow/67298628.cms















4. https://www.valueresearchonline.com/story/h2_storyview.asp?str=46509

• The Five Point Filter
• All listed non-finance companies with a market cap of greater than Rs 100 cr
• Promoter shareholding has increased >3.0 per cent in the past four quarters
• Net sales >9.0 per cent per TTM 2QFY19
• Net Profit >10.0 per cent per TTM 2QFY19
• Increasing or stable ROE in the past 5 years

Pay day for November

I have received a salary of 82,487 rupees post tax for the month of November. I should save 50% of post tax salary but I am not going to consider bonus in that calculation so pay minus bonus is 53,001. My investments this month should be (53,001/2) = 26,500.5 + bonus (29,486.00) = 55,897. Out of which I move 5500 to Franklin India Taxshield and rest to Franklin India Dynamic P E Ratio Fund Of Funds (50,397).

I have paid 2,750 insurance plus kid school fee into debt fund already, I will be left with 23,750 to spend in the month of December. 

My PF(5,23,173) and Gratuity (1,56,801) stands at as of today. 

25 times

Before compounding kicks it is really a toil to see that FI is far away. I am trying to simplify and see if I can break the journey to bite size pieces. It is true that the FI number varies for me month on month because the amount spent is different. The FI amount I arrive is 25 times last 12 months expenses. A sudden emergency can derail the journey but its still a good idea to see if I can set some goals.

Today the amount seems to be 80,00,000 so 80k for 1% and contributing 20k will be .25%. If I assume 20k to be single block I need 400 blocks to FI. I have already covered 170 blocks and the distance to cover is about 230 blocks. There will be change in FI money and so the blocks I will have to cover will increase but no one can erase the blocks I have traveled of course a recession can erase some of my distance but in the long run it should help me cover much of the ground.  

So here will be distance I have to cover:

1 2 3 4 5 6 7 8 9 10  --- I will have 12k per month of passive income when 10 steps are covered. Achieved it in the end of December 2017
11 12 13 14 15 16 17 18 19 20
21 22 23 24 25 --- I will have 13k per month of passive income when 15 steps are covered. Achieved it in the end of March 2018
                       26 27 28 29 30
31 32 33 34 35 36 37 38 39 40 --- I will have 14k per month of passive income when 15 steps are covered. Achieved it in the starting of August 2018. Took me 4 months and I am sure next 1k passive will take more time than this.

41 42 43 44 45 46 47 48 49 50 
51 52 53 54 55 --- I will have 15k per month of passive income when 15 steps are covered. (2018 target) Achieved in October 2018 as I have added PF contribution from employer as well.

                      56 57 58 59 60 
61 62 63 64 65 66 67 68 69 70 ---  16k per month Achieved in NOvember 2018 as I have added PF contribution from employer.

71 72 73 74 75 76 77 78 79 80 
81 82 83 84 85 --- 17k per month Achieved in February 2019

                       86 87 88 89   90 
91 92 93 94 95 96 97 98 99 100 --- 18k per month Achieved in May 2019

101 102 103 104 105 106 107 108 109 110 
111 112 113 114 115 --- 19k per month achieved in August 2019
                                116 117 118 119 120 
121 122 123 124 125 126 127 128 129 130 (2019 target) --- 20k per month 
achieved in Nov 2019

131 132 133 134 135 136 137 138 139 140 
141 142 143 144 145                                 --- 21 k per month achieved in Nov 2019

                                146 147 148 149 150 
151 152 153 154 155 156 157 158 159 160 --- 22 k per month

161 162 163 164 165 166 167 168 169 170 
171 172 173 174 175                                 --- 23 k per month

                                176 177 178 179 180 
181 182 183 184 185 186 187 188 189 190 --- 24 k per month

191 192 193 194 195 196 197 198 199 200 
201 202 203 204 205                                 --- 25 k per month
                                206 207 208 209 210 (2020 target)

211 212 213 214 215 116 217 218 219 220 
221 222 223 224 225                                 --- 26 k per month
                                226 227 228 229 230

Dream job

In the video, Warren Buffett is talking about creating a dream job. It made me wonder what would be my dream job. How should one create it?

https://www.youtube.com/watch?v=ridk6OvkgGM&t=2378s

Job where

I am the boss.

I do not have to worry about monthly expenses or money to take care of any emergencies.

Be good at what I do, I am planning to be an investor, and beating my own performance will be motivating.

If I have to create a job like that I should be prepared to work for at least the next 6 years, not just dumping money to make 25 times expenses but learning ways to create a job profile that suits me.

On the other hand it a long way down the road until then I have to plow the field to enjoy the harvest.

Money from rent

I own some ancestral property in my home town in which I had built two houses. I have discussed with mother and have taken 5000 from the rents, hoping to take at least 5000 every month. Invested the amount in Franklin India Ultra Short Bond Fund Super Institutional Plan - Direct - Growth (return is 8.7%) just to make sure that in case of any emergency I do not dip in to long term fund. My emergency fund now stands at 225,999.52.

12/11/2017 My mother has changed her mind and has taken the debit card from me and said she would give 5k cash every month. This comes as a reminder that I should not take it for granted and should plan my retirement with out property yield into consideration.