Today we are going to discuss one of the most popular and successful books related to investment. The name of the book is “ Coffee can investing”. The book is written by Saurabh Mukherjea. We will cover everything about the book and how to invest your money. You can make money other than real states and gold which are bonds, shares, and mutual funds. Most people don’t know much about investment. They do investments based on people’s words or trends. If the person invests their money based on the experience of the other person the chance of losing the money gets more because the investing person didn’t have proper knowledge of investment. If the investment is done without thinking about the objectives of the investment then it may put your life at risk when you actually follow the trends of the investment. Here you can download Coffee Can Investing PDF
Coffee Can Investing: The Low-Risk Road to Stupendous Wealth PDF Download
Also Download: Let’s Talk Money: You’ve Worked Hard for It PDF
An RBI report of 2017 claims that Indians put 77% of their income in the real states and only 5% in the financial states. The obsession of the Indians to invest in the real states is started in 1995. In 1990 due to liberalization, many people make it through the stock market. When the scam of 1992 takes place then the regulation of the stock market got high and shares that were distributed in the form of the physical certificate were replaced by the Demat account. The investment in the stock market also gets transparent due to the scam of 1992. After these incidents, a huge comeback has been seen in the investment of real states and gold to secret the black money. Till 2013 real estates keep on booming after than there was a great reduction in the peak point of the real states and gold. Many of the people get stuck with their money and all these happen due to government policies like demonetization, gst bill, and real estate act. To make money in the near future the best way to may money is financial markets like bonds, mutual funds, share markets. But spending on any of the investments your objectives must be clear because as we have discussed above if you follow the trends of the investment without acquiring any knowledge then you may put your money at risk. Let’s see the main points which are must follow before doing any investment.
Decide objective
Your objectives must be clear as the objectives are divided into three stages of investment like security, stability, and ambition. Security means a secure future and you are ready for future expenses. Stability is the improvement in the lifestyle in the near future and ambition is your dream and the willingness to get wealth. You must keep in mind the inflation of the money to acquire all these in your life. You should calculate your money and according to that, you have to make your investment plan. The author is trying to deliver the coffee can investing to the readers. Let’s see about the concept of the coffee can investing.
Earlier the British used to collect their money in the coffee cans just like the piggy bank of the Indians. When the coffee can get full then only they used to open the coffee cans. The author is conveying their ideas to the reader that is you should buy some shares for at least 10 years and forget about the shares. The shares which you put for the long duration make you wealthy during the passage of time. To choose the shares author describes 3 criteria.
- Non-financial firms: The market capitalization of the non-financial firms must be above the 100 cr.
- Rate of capital employed: The overall improvement in the money like the debt, equity, and earnings of the company. The company in which you are willing to invest must have a ROC of more than 15%
- Revenue and growth of the company: It is necessary to counter the growth and revenue of the company. You must be thinking about the safe increasement of the company revenue. According to the Author, the growth and revenue of the company must be 10% for a safe investment. Before investing in any company must look at the performance for 10 years regarding the company’s growth and revenue.
Coffee can portfolio is based on these parameters and when you follow the parameters of the coffee can investing which is written by a well-known writer um investor Saurabh Mukherjee, you can definitely make passive income through the shares market. You must have to select the company based on the above parameters and your own research. Once you select the company make sure to go for long-term investing for passive return. Before investing in the coffee can let me make it clear you don’t have to invest your all money in the coffee can. You should diversify the portfolio.
