I had stupidly over indexed on equity, made terrible mistakes with money (see thread the end of this thread) and had no other income stream.
How I invest my money
A thread...
I had stupidly over indexed on equity, made terrible mistakes with money (see thread the end of this thread) and had no other income stream.
So while I had "wealth" I did not have any income.
The last year I have been working on changing that.
A decade back I bought a term insurance plan for 25 years, for 10Cr.
Which means if I die in the next 25 years (by the time I am 55), my family will get 10Cr (over and above my ongoing loans).
If I don't die, I get nothing.
Until then I rely on an insurance plan.
This amount I believe takes care of all current and future needs of my family.
This gives me mental peace, should something happen to me ever!
The first 40% goes into buying stocks of individual companies; split into 25% and 15%.
Shopify
Square
Zoom
Tesla
Indians can invest upto $250,000 every year in international stocks (public + private), which is way more than I will ever have :)
Highly recommended.
My current picks are
ITC
HDFC
Reliance
Spicejet
Indian Hotels
Shree Cement
I am not a big fan of Mutual funds because of the opacity with which they operate.
So I started to use @smallcaseHQ
Think of it like a mix of stocks as per a strategy, where an expert is telling you what to buy/sell
The ones I picked were
Capitalmind Momentum
https://t.co/yvxGWXFvnH
and
Weekend Investing Momentum
https://t.co/vzijXXCDoE
It is where I have lost my most money and made my most money as well.
I would not call myself an angel investor, since I do not have the capital depth to invest in all the good ideas I come across.
I mostly invest in startups through @AngelList
You can follow syndicates on AL, through which you get a deal flow. And most allow you to invest starting $1,000
25% in US tech market leaders - with a 15 year horizon, through @INDmoneyApp
15% in Indian traditional market leaders - with a 15 year horizon, through @zerodhaonline
40% in momentum Indian stocks, through @smallcaseHQ
20% in startups, through @AngelList
I do not have any Fixed Deposits (hate them!)
I haven't invested in any debt funds (frankly, they arent that bad, but I am willing to take on risk)
My only liability is a (BIG) home loan
But that is just me.
This should ideally be the investment strategy for someone in their 20s
30% US Stocks + 40% Indian stocks + 30% Indian Debt (no startups please)
https://t.co/yyvpkvNOv6
It has been converted into an eBook (thank you @shreyashah23)
https://t.co/mRdLJEtn5Y
Mistakes I made with my money.
— Ankur Warikoo (@warikoo) September 25, 2020
A thread...
Take inspiration from others - but eventually build your own.
Oh - almost forgot - the longest word in english language
mutualfundsaresubjecttomarketriskpleasereadtheofferdocumentscarefullybeforeinvesting
More from Ankur Warikoo
10 ways I am running my current startup differently from the ones before
A thread...
Difference #1
Bootstrapped as against raising money
https://t.co/RKWB3KfMZt was a venture funded company. We raised $43Mn from top investors, but I couldn’t give them a return that I would be proud of. In the process, learning how raising money works but also doesn’t work
My current startup is bootstrapped.
I do not intend to raise money for it.
It has been profitable from Day 1 and that is the way I hope it remains.
I have raised money from customers.
Difference #2
Slow and small
For the past decade, I was in the mode of fast and big.
Being fast was the only thing that mattered.
And you either go big or go home.
Today, I am taking it slow.
Slow to add costs, slow to take decisions that are irreversible.
I am patient because all good things in life take time!
A thread...
Difference #1
Bootstrapped as against raising money
https://t.co/RKWB3KfMZt was a venture funded company. We raised $43Mn from top investors, but I couldn’t give them a return that I would be proud of. In the process, learning how raising money works but also doesn’t work
My current startup is bootstrapped.
I do not intend to raise money for it.
It has been profitable from Day 1 and that is the way I hope it remains.
I have raised money from customers.
Difference #2
Slow and small
For the past decade, I was in the mode of fast and big.
Being fast was the only thing that mattered.
And you either go big or go home.
Today, I am taking it slow.
Slow to add costs, slow to take decisions that are irreversible.
I am patient because all good things in life take time!
How I created content in 2020
A thread...
Back in Aug 2016, I started creating content to share my experiences as an entrepreneur.
Over 3 years I had put out 1,200+ hours of content - posting every week without
Little did I know that something I started almost 4 years back would give my life an entirely new direction.
At the end of 2019, my biggest platform was LinkedIn with ~700K followers.
In Jan 2020, I decided to build a team that would help me with the content.
I ran a month long recruitment drive to hire a team of interns.
It comprised 4 detailed rounds - starting with my loved 20 questions, then an assignment, then a WhatsApp video round and finally F2F.
Through 1,200+ applications, I finally selected 6 profiles, starting March.
I am a firm believer in @peterthiel's one task, one person philosophy
So the team was structured such that everyone was responsible for ONLY one task
1. Content ideas
2. Videography
3. Video editing
4. LinkedIn (+TikTok) distribution
5. FB+IG distribution
6. YouTube distribution
A thread...
Back in Aug 2016, I started creating content to share my experiences as an entrepreneur.
Over 3 years I had put out 1,200+ hours of content - posting every week without
August 2016.
— Ankur Warikoo (@warikoo) October 2, 2020
It has been 3 months since LinkedIn had launched its video feature.
And I had been waiting for it to be activated on my profile.
A thread...
Little did I know that something I started almost 4 years back would give my life an entirely new direction.
At the end of 2019, my biggest platform was LinkedIn with ~700K followers.
In Jan 2020, I decided to build a team that would help me with the content.
I ran a month long recruitment drive to hire a team of interns.
It comprised 4 detailed rounds - starting with my loved 20 questions, then an assignment, then a WhatsApp video round and finally F2F.
Through 1,200+ applications, I finally selected 6 profiles, starting March.
I am a firm believer in @peterthiel's one task, one person philosophy
So the team was structured such that everyone was responsible for ONLY one task
1. Content ideas
2. Videography
3. Video editing
4. LinkedIn (+TikTok) distribution
5. FB+IG distribution
6. YouTube distribution
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A THREAD ON @SarangSood
Decoded his way of analysis/logics for everyone to easily understand.
Have covered:
1. Analysis of volatility, how to foresee/signs.
2. Workbook
3. When to sell options
4. Diff category of days
5. How movement of option prices tell us what will happen
1. Keeps following volatility super closely.
Makes 7-8 different strategies to give him a sense of what's going on.
Whichever gives highest profit he trades in.
2. Theta falls when market moves.
Falls where market is headed towards not on our original position.
3. If you're an options seller then sell only when volatility is dropping, there is a high probability of you making the right trade and getting profit as a result
He believes in a market operator, if market mover sells volatility Sarang Sir joins him.
4. Theta decay vs Fall in vega
Sell when Vega is falling rather than for theta decay. You won't be trapped and higher probability of making profit.
Decoded his way of analysis/logics for everyone to easily understand.
Have covered:
1. Analysis of volatility, how to foresee/signs.
2. Workbook
3. When to sell options
4. Diff category of days
5. How movement of option prices tell us what will happen
1. Keeps following volatility super closely.
Makes 7-8 different strategies to give him a sense of what's going on.
Whichever gives highest profit he trades in.
I am quite different from your style. I follow the market's volatility very closely. I have mock positions in 7-8 different strategies which allows me to stay connected. Whichever gives best profit is usually the one i trade in.
— Sarang Sood (@SarangSood) August 13, 2019
2. Theta falls when market moves.
Falls where market is headed towards not on our original position.
Anilji most of the time these days Theta only falls when market moves. So the Theta actually falls where market has moved to, not where our position was in the first place. By shifting we can come close to capturing the Theta fall but not always.
— Sarang Sood (@SarangSood) June 24, 2019
3. If you're an options seller then sell only when volatility is dropping, there is a high probability of you making the right trade and getting profit as a result
He believes in a market operator, if market mover sells volatility Sarang Sir joins him.
This week has been great so far. The main aim is to be in the right side of the volatility, rest the market will reward.
— Sarang Sood (@SarangSood) July 3, 2019
4. Theta decay vs Fall in vega
Sell when Vega is falling rather than for theta decay. You won't be trapped and higher probability of making profit.
There is a difference between theta decay & fall in vega. Decay is certain but there is no guaranteed profit as delta moves can increase cost. Fall in vega on the other hand is backed by a powerful force that sells options and gives handsome returns. Our job is to identify them.
— Sarang Sood (@SarangSood) February 12, 2020
