Tradevesting — Notes — 7
Class 7–Tax Savings
Reasons are created to move stocks prices up or down.
Buyback means company is purchasing shares from retail investors, promoters don’t participate.
Continuous learning is the key.
Strategies are not good or bad, stock groups are good or bad, that too in terms of volatility and holding period.
If we want lower draw-downs (<10%), we only need to work on V40 stocks.
We don’t need to trade in 33 stocks, the numbers can be roughly around 23 as there will be averaging opportunities as well.
If we are not getting enough opportunities within V40 companies, it may mean a correction is due or is around the corner.
2Ti3Y is best if we are ready to hold and sit tight, but business understanding becomes critical in this approach.
We can be in either of these 3 groups:
- only work on V40/V40N
- work only on V40 and 2Ti3Y
- just V20 strategy on V200
How many d-mat accounts?
- Goal-based
- Active Passive trading
- Tax savings
Adult non-working member’s d-mat account can be used in the family.
Assign nominee in case of possible family dispute.
HUF — Hindu Undivided Family (only married male person can open)
CA →Affidavit →PAN Card →Bank a/c →d-mat a/c
Money transferred in blood relation is not taxable.
This can make huge difference in 10–20 years. (1Cr in 10Y, 50Cr in 20Y)
40% CAGR can be achieved in 3 years if V40 and 2Ti3y is applied.
FDs are a waste of time and money, no gain after tax and inflation.
Respect rich people and you will also get rich.
Google may or may not listen to every single word we utter but this universe is listening.
Don’t get jealous, appreciate others’ achievements and get inspired.
Read, listen and watch ‘The Secret’ at least 40 times.
Stock market is a very boring journey, avoid making it interesting by doing stupid things, work on your mind and body.
Don’t get greedy in stock market, work towards increasing your active income by working on your skill-set.
