3 Simple Steps to Financial Success in 2024

Here are my three simple steps summarizing how to be a successful investor with minimal effort.

1. Start a regular savings plan by deducting money from your bank account each time you are paid and have it automatically deposited into your investment-trading account. Simple and automatic. Set it up and never think about it again.

2. Know how to assess the value of an investment. What would you pay that would guarantee a margin of safety if you were wrong? Continue to learn until your level of probability of being right on value is greater than a coin flip by a large margin, say 60% probability or 75% to be ideal. I’ve written on how to assess value in our book and in many of these newsletters. Narrow your focus to businessess you know and increase your skill at understanding the value of an opportunity. I just purchased 10 acres of development land near a University for $70,000. I believe there is a 98% probability that I will get my money back. I also believe there is a 95% probability I can divide the parcel into two, 5 acre lots and sell each for $99,000 today. The seller wanted much more but my value number was $70,000 for the entire parcel. The price was much lower than the value, so I purchased the investment. Simple.

3. When the price asked for that investment is well below what you see as the value (half or less), you buy it. If the price is significantly above what you think the value is, you sell part of it if you own it or do not buy it if you don’t own any. Wait and learn, and never buy until the price is well below what you see as the value. Simple.

Depending on the amount you put into your account each month, you may only need to invest every 3, 6 or even 12 months. Everything else is on automatic pilot, and you won’t need to do anything. I’ve talked in previous newsletters about this ETF that has the lowest fee and is the only thing you may want to buy when investing if you don’t want to buy individual stocks. I don’t own any ETFs, as I invest in stocks directly.

Does Happiness lead to financial success, or does having money make you happy?

After investing for over 40 years, I'm convinced that happiness leads to financial freedom and investing success.

I don’t know how or why; I understand it is true. 

I also know that in India, children take happiness classes to learn how to be happy. Is it a coincidence that immigrants from India have the highest median income of $150,000, while the average of all others is $70,000?

In the free introductory video clip, you will learn the three types of happiness and why only one matters. Check out the 7 Secrets to Happiness now.