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how she made millions

Story of a Patient Lady – How Anne Scheiber Made $22 Million

 

Guys, let me share a success story of a woman who made millions by staying patient and calm in a stock market.

 

Her exceptional investing journey is a lesson for all investors who get panicked by the ups and downs of stock markets and reap the profits/losses by thinking short-term. She is a true example of buy and hold strategy. During her investing career, she hardly sold her holdings. One can learn from her the buy-and-hold strategy.

 

Let’s read her story.

 

Anne Scheiber, born in 1893, was an auditor in IRS and made not more than $4000 a year. Being a Jewish as well as a woman, she hardly got any promotion in her career and retired with a corpus of $5000 and an annual pension of around $3100 per year.

 

With a frugal lifestyle and high savings, she started her journey with a buy-and-hold strategy. As she had an ample amount of time in her retirement phase, she picked up some marvelous dividend paying companies(Coca Cola, Abbott, Pfizer etc) during the course of time.

 

Anne Scheiber Portfolio

Anne Scheiber Portfolio

 

At the time of her death, at the age of 101, her portfolio valuation was around $22 Million.

 

The biggest secret behind her success was the time she gave her investments to grow and patience to hold on. She never interrupted the process of compounding and let her portfolio grow by giving it a huge time period of 50 years.

 

What can you learn from Anne Scheiber?

 

All we can learn from her is – Being Patient. Just buy good companies and hold them forever. Never interrupt the cycle of compounding. You’ll reap the benefits of compounding.

 

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How Many Stocks in Portfolio

How Many Stocks Should You Own In Your Portfolio

 

Well, this is the question I get asked many times at my workplace from my numerous colleagues as well as friends.

 

What I have seen in my investing career is that people tend to own as many stocks as they can. Without keeping a check on the performance of those stocks, they keep on adding new stocks which they find in newspaper clips or as tips from friends. In fact, I personally know a friend of mine who owns around 120 stocks in his portfolio. Does he really need to over-diversify his portfolio in order to earn money from stocks? No!! Over-diversification just dilutes the returns. In other words, it’s not even diversification. It’s di-worsification (a word given by Peter Lynch).

 

Too many stocks in a portfolio minimize your returns. Whereas, if someone holds too less, it may get exposed to a risk of underperformance. Because even if a single stock underperforms, it will drag down the performance of the whole portfolio.

 

The question is – How many stocks should be added to a portfolio? Ideally, one should have 10-15 stocks in a portfolio. Selecting a range of stocks from diversified sectors and industries tend to give stellar returns. A concentrated portfolio tends to perform better than an over-diversified portfolio.

 

I am not saying that you can’t keep more than 15 stocks in your portfolio. Of course, you can but it shouldn’t hamper your portfolio’s performance. As long as you are okay with your performance, you can add as many stocks in your portfolio as you can.

 

Benefits of keeping a concentrated portfolio

 

Listed below are few of the advantages of keeping a concentrated portfolio.

 

  1. Rocking Performance: If a selection of stocks is done with proper due diligence and research, you tend to gain a lot of profits from the performance of those stocks. All you have to follow is – Buy Right, Sit Tight – philosophy. You just need to buy your picks and hold onto it for a long period of time in order to achieve maximum gains.
  2. Effective Monitoring and Research: With less number of stocks in a portfolio, you’ll be able to monitor your portfolio effectively. With a large portfolio, monitoring the stories of each stock can become cumbersome.

 

So make sure that you don’t play with your returns by over diversifying your portfolio. A healthy portfolio of 10-15 stocks will work really well for you in the long term.

 

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Cook Food At Home and Build Wealth

How My Uncle Grew His Net Worth By 50.57 Lakhs By Cooking At Home

 

Guys, today I will tell you a story of my uncle who inspires a lot of young people in terms of building wealth. He started his professional journey in 1993 when he got an internship at Khaitan Electricals, New Delhi. During his initial days of internship, he relocated to New Delhi with a stipend of Rs.6000 per month. As he used to live alone, he couldn’t save much as most of his salary used to be spent on paying rent and eating food outside. Being a foodie, he used to shell out almost Rs.3500 every month on his food.

 

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How To Earn Crores

How Veeru Aims To Earn 1.14 Crore By Saving Just 10% Of His Salary

 

Yes, my friend, you heard that right. You can earn crores too. That too with just 10% of your salary. I’ll show you how Veeru, by saving just 10% of his salary, will accumulate a huge amount of Rs.1.14 Crore. Let me take you on a life journey of Jai & Veeru.

 

Jai, who has just stepped into a corporate job directly from college, starts earning a handsome salary of Rs.25000 per month. He keeps on buying unwanted materialistic stuff, parties in 5-star discotheques to impress his female partners, spends way more than his monthly income and continues to be in debt without saving even a single penny. Being unaware of the fact that life is uncertain, he keeps on maintaining his lavish lifestyle. He doesn’t even bother about building an Emergency Fund and thus makes his life miserable.

 

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