Investing is not about finance

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Our mind generally associate investing with finance. Since we associate investing with money and money with finance. However, like Doctors, investor doesn’t need any degree related to any subject to practice the profession. Let’s explore 2 real life scenario to understand better.

There was a lady named Grace Browner in United States. She had a hard life. She was an orphan as a child and never married. She never had kids and lived in one-room house for most of her life. She worked as a secretary all her life. She died at the age of 100 in 2010. Her friends were shocked to know that Grace has left $7 million to charity. They start digging how could a humble secretary have a huge amount. They figured out, she hadn’t won any lottery and hadn’t had any inheritance. She simply invested in the stock market for whatever little amount she could save for 80 years.

The second story is about Mr. R*. He was born in a wealthy family. He went to Harvard University and got MBA from Harvard Business School. He went on to work in Wall Street in 1980. He became one of the most well known person in the finance world. He was the vice chairman of Merrill Lynch in 1990s. He retried and started pursuing charitable activities. However, 2 weeks after Grace died, Mr. R. filed for personal bankruptcy. He had to sold his furniture just to buy the essential items.

The above stories are poles apart where one person who was born into luxurious became bankrupt and the other person who worked hard throughout her life left a huge fund as charity. She followed the simple rule to save as much as she can and invest them and let them compound patiently. Behavior plays a key role not only in investing but also in other parts of life too.

*Mr. R is a pseudo name.

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