The Coach and the Foundation

Amar Pandit , CFA , CFP

Can you become an effective writer without understanding the foundational elements of a language?

Think Alphabets, Words, Grammar and Punctuations.

Can you become an outstanding musician without understanding Sa Re Ga Ma and the basics of music?

I do not think so. By the way, I seem to come across as a stand-up comedian when I attempt to sing. 

Likewise, Investing is no different.

Investing without understanding the foundational elements of investing is like closing your eyes and trying to score a goal.

Most people obsess about the bat to play cricket or the music instrument to make good music. Similarly, people seem to obsess about the investment (where to invest) but the real key to financial success is to learn and understand these foundational elements (there are others too) –

  1. Time Creates Money – The importance of Starting Early
  2. Savings are the building blocks of Wealth Creation
  3. Never interrupt Compounding
  4. The Concept of Volatility and Risk
  5. The Role of Inflation as a Wealth Destroyer
  6. Owner versus Loaner
  7. Time in the Market versus Timing the Market (Read the Post: Cucumbers and Pickles)
  8. Diversification and Risk Management

We go to teachers and coaches to learn a language, skill, sports, music, and everything we consider valuable. Your financial future is super valuable too.

Remember the tallest buildings have the deepest foundations. Building and protecting wealth too requires a deep foundation – one that you can construct with the help of a compassionate real financial professional.

Finally, Even the Best have Coaches.