It happened more by default then choice.We owed mining rights to a very large deposit in J&K but because of Govt. (Farooq Abdullah) interference - they wanted to terminate our lease and give it to one of their own people that lease was terminated in 2000 and all our investment in that company was valued at zero!!!

 

This company was started by my father and all this came up because he passed away in 1999 maybe at 26 years I was too ignorant and foolish to handle the hot potatoes of the Indian political system. I fought the case till my last penny in the courts but then gave up since I lost both hope and money.I lost all my investments in the tech bubble because I traded to make a fortune in the shortest possible time.

 

In 2001 I joined a school as a part time teacher (salary Rs 1000pm) and started teaching students in a private tutorial that I set up at that time. I had lots of free time and read almost all the books on investing. The biggest problem with our day to day job is it does not give us time to think. All day long we behave like labours and there is no time devoted to thinking anything that is too far away from the present.

 

Made some big money in the 9/11 crash and then came across Pantaloon Retail and Tv18 etc in 2003. Simmultaneously I took up a MF distributorship because it was linked with something I enjoy doing - also it indicated  a steady flow of income through SIP enrollements of clients - Never gave cash back because that is the cost of my advice.

 

At one point of time I was teaching about 100 students but have since left teaching because I cannot give time to this website which I helped create just to share knowledge and gain wisdom from like minded people.

 

But yes, when i left tuitions in 2006 and when I used to invest my last rupee in stocks there were a flood of protests.

 

But my experience has been that following something in which one has passion is a great thing to do but then we all need a capital base for that. I still consider myself lucky of not being wiped out in 2001 because I was leveraged like hell! I used to see some shares and then buy again as the markets rose. my bankers HDFC bank were always with me.On days the markets fell they used to call me for margin call and the moment I heard their voice I used to say "Array sir yeh kal badh jayega". Today in retrospect I think I was riding my passion with luck.

 

 

Thanks for the response, there is much more to learn from you and your experiences. I too share the same thoughts like you, believe in doing what I love to do, what I passionate to do, that was one reason the day I saw this forum, I was up whole night reading this....this is one of the best thing I would say you have created which will grow like anything......

 

I am a software engineer but my heart lies with equity research, when I was in New York for our company assignment, I use to write research reports (will share with you if you say!) and had 1500+ free subscribers and few paid (that time I was thinking that as if I know little but now after meeting smart and wisdom people here I feel as if I don't know anything!!!). Due to time constrain I stopped that and now in India, apart from office most of the time I spend doing research and looking for opportunity......I have read most of the books mentioned by you......but still I feel there is more to learn......

 

I have plan in place when to quit this job, by that time I will have enough to support my family for next five years and something to invest too. Though I do not believe in just equity investment but I am also active in derivatives instruments like future & options and may venture into commodity etc later. I believe in making money where from where ever and how ever we can make legally and with passion.

 

When I joined engineering, I was also a tutor as my part time job....so at least there is something similar between myself and you:-)

 

Basant jee, apart from setting price and goal for scrips do you also have some goals? I mean there is no limit to money making....sometime I feel how much is enough?

 

I will be going to my native place this weekend via kolkata, I wish if I can meet you, it will a dream come true.

 

 

 

 

There shd be get together once in a year for all the TED members, organised by diff members at diff location every year, it will really be great. Thanks again for starting new thread on this topic........I need to learn from those who took less travelled path.

 

TED members, pls share your views on this.....there is lots to learn from each other.

 

 

Its an amazing story. I SILL CAN'T BELIEVE IT AFTER READING THE POST FOR MORE THAN 3 TIMES.

 

 

 

sudipto 

 

According to me, if one wants to quit the job and 'live off' the stock market, one needs to have a large networth. If you are a fairly convervative person with a family to feed -

 

- Maintain an XL sheet for one year to see what your average monthly expenses are (including EMIs for loans). Let's assume that your average monthly expenses are Rs. 30,000.

 

- Get yourself and your dependants insured (health and life)

 

- Make sure you have 6 months expenses (Rs. 1.8 lacs) in CASH in your savings account all the time.

 

- Your fixed returns investments should yield a minimum of Rs. 40,000 per month as income. This could include rent from an apartment you own plus investments in Fixed Deposits or Liquid/Debt mutual funds. So if you own an apartment that gives Rs. 10,000 per month as rent, then you need to invest around Rs. 50 Lakhs in liquid/debt/arbitrage mutual funds.

 

- You should also have atleast Rs. 30 Lakhs invested in equities. Assuming 25% CAGR returns, you should be increasing your portfolio size by atleast Rs. 50,000 per month. This should take care of your future expenses like bigger car, children's education, vacation expenses etc.

 

So if your monthly expenses are around Rs. 30,000 per month, your current networth should be alteast Rs. 1.5 crores (incl real estate value).  That's 500 times the monthly expenses. But based on your risk apetitite, you could make appropriate changes.

 

It would be helpful if your spouse is working.

 

 

Very inspirational Basantji !
 

 

WOW

 

I have gained (stolen) all th experience of the greats whose books I have read and I continue to read everything with a feeling that it were my text book. I never read a book without a pencil or a highlighter and sometimes it takes 2 weeks for me to read 200 pages. I revisit the thoughts again in a random manner. I am able to do it because I take that as a hobby rather then work.

 

SmartCat: We were mining gypsum of 92% plus purity. Cost of production was Rs 40 per tonne and selling price was Rs 500 per tonne on advance payment.maybe that was the catalyst for the vested interest to get in. It was an opencast mine and all we had to do was dug up the mountain and sell it at the mine pithead itself.

 

Though I feel luck has a very little relevance in our sucess I think I was lucky not to be wiped off in 2001. I was really playing with fire and the best part was I always thought I had nothing to lose (a few lacs made no difference to my mental strength so I thought why not bet on it for the long term on leverage).

 

Did you all know that in 2002 RJ was also called in for margin calls and had to sell NIIT in one day which sent the stock tanking 18%. He was later put under investigation by SEBi for bear hammering.