How to Invest Without Losing Sleep? ; Time-tested secrets to stress-free investing

Professionals in today's fast-paced environment work hard to attain financial independence, yet most go about doing it with little financial literacy. While managing personal funds is an inadvertent exercise performed by all, the question remains: how wisely is the money managed and invested? This book opens doors to simple, yet powerful, strategies that will change your approach to investing forever. You will learn how to achieve consistent investment return without losing sleep by understanding how to: Set financial goals and figure out the types of investments required to achieve them Prepare a Retirement Plan in Spreadsheet format by using step-by-step instructions and formulae Recognize the difference between genuine investments and speculations in the financial markets Discover great companies for stock investments and to create your own 'wait-lists' Value the stock of a company using 'Discounted Cash Flow-DCF' analysis Assess and decide on investing in gold and bonds Written keeping non-finance professionals in mind, this book prepares you to develop your own edge for a lifetime of investing success, take charge of your finances and invest safely. Table of Contents: Why Invest? Investment, Risk and Returns First-Things-First Traditional Asset Classes Non-Traditional Asset Classes Common Stock Investing Finding Great Businesses Part-I Finding Great Businesses Part-II Stock Valuation Margin of Safety Angel Investing Bond Investing Dealing with the Chatterbox Investing Psychology Asset Allocation Decision Investing Methods Investing Ethics Developing Your Own Edge End Notes Bibliography Title Contents 1. Why Invest? 1. We are all Investors 2. Inflation 3. Deflation 4. Why Set Financial Goals? 5. Template of a Financial Goal 6. Sample Financial Goals 7. Setting Your Own Financial Goals 8. The First Act—Retirement Planning To Summarize 2. Investment, Risk and Returns 1. What is Investment and What it is not? 2. Measure of Risk 3. Risk Tolerance 4. Ability to take Risk 5. Willingness to take Risk 6. Investment Returns 7. Sharpe Ratio 8. Required Returns 9. Power of Compounding 10. 72 Divided by Return Rule 11. Retirement Plan Spreadsheet 12. Low Risk – High Returns To Summarize 3. First-Things-First 1. Build Your Capital 2. Cash 3. Primary Residence 4. Insurance To Summarize 4. Traditional Asset Classes 1. Fixed Deposits, Bonds (Debt instruments) 2. Common Stock 3. Preferred Stock 4. Comparison between Common Stocks, Preferred Stocks and Bonds 5. Real Estate Investments 6. Real Estate Investment Trusts (REITs) 7. Comparison between Direct Real Estate, REITs and Stocks 8. Speculation in Financial Markets and Gambling To Summarize 5. Non-Traditional Asset Classes 1. Commodities 2. Gold 3. Forex 4. Derivatives—Good, Bad and Ugly 5. Options and Warrants To Summarize 6. Common Stock Investing 1. Why Invest in Stocks? 2. Basics of Common Stocks 3. The Business of Stock Investing 4. Stock Investing Vs Business Partnerships 5. Mr. Market by Ben Graham 6. Using Mr. Market to Our Advantage 7. Efficiency of Markets 8. Intelligent Stock Investing by Philip Fisher 9. Information on Listed Companies To Summarize 7. Finding Great Businesses Part-I 1. Brand Consciousness 2. Brand Choice Questionnaire 3. Purchase Questionnaire 4. Your list of 1st Class Products and Services 5. Framework for Evaluation 6. Step-1. Competitive Advantage Business 7. Step-2. Will the Company’s Products be Relevant in the Future? 8. Step-3. Dependency on Highly Qualified Labor and Unionized Labor 9. Step-4. Maintenance and R&D Expenses 10. Step-5. Frequency of Repeat Purchases 11. Step-6. How Satisfied Are You as a Customer? To Summarize 8. Finding Great Businesses Part-II 1. Financial Evaluation 2. Step-7. Growing Trend in Sales and Earnings (EPS) 3. Step-8. Evaluating Debt 4. Step-9. High Return on Capital 5. Step-10. How does the Company Handle Capital? 6. Additional Debt vs Equity (Another Viewpoint) 7. Share Splits & Consolidations 8. How to Find Companies for Evaluation? To Summarize 9. Stock Valuation 1. How Much to Pay? 2. Valuation Template 3. Time Value of Money 4. Discounted Cash Flow (DCF) Method 5. Operating Cash Flow Per Share 6. EPS Growth Rate (g) 7. Discount Rate 8. Risk Free Rate 9. Beta 10. Equity Market Risk Premium (ERP) 11. Valuation Calculations 12. Valuation in Practice 13. Quality of Our Valuation 14. Verification 15. Price to Earnings Ratio (P/E Ratio) 16. Price to Book Value Ratio (P/BV Ratio) To Summarize 10. Margin of Safety 1. Art and Science of Investing 2. Initial Rate of Return 3. Dividends 4. Buying Stocks During Market Crashes 5. Dollar Cost Averaging 6. Diversification To Summarize 11. Angel Investing 1. Who is an Angel Investor? 2. Structure of an Angel Investment 3. Financial Suitability 4. Evaluation of the Investment 5. How to Exit an Angel Investment? 6. More than the Money To Summarize 12. Bond Investing 1. Bond Basics 2. Types of Bonds 3. Bond Quotes 4. Capital Gains and Losses at Maturity 5. Bond Valuation Spreadsheet 6. Bond Risks 7. Yield to Maturity (YTM) 8. Sovereign Bonds 9. Corporate Bonds 10. Zero-coupon Bonds (Zeroes) 11. Mitigating the Bond Risks To Summarize 13. Dealing with the Chatterbox 1. Financial Media 2. Analyst Reports 3. Sell-side Research 4. Buy-side Research To Summarize 14. Investing Psychology 1. Market Cycle 2. Formation of Peaks (High Points) 3. Formation of Troughs (Low Points) 4. Bull and Bear Markets 5. Debt and Emotions 6. A Speculator’s Cycle of Emotions 7. What Motivates Your Actions? 8. Stop Loss To Summarize 15. Asset Allocation Decision 1. Why Asset Allocation? 2. 60/40 Method 3. 100 Minus Age Method 4. Making Adjustments 5. Tactical Asset Allocation 6. Sample Asset Allocation To Summarize 16. Investing Methods 1. Investment Process 2. The Answer to the Question ‘Who’ 3. Investment Approach 4. Active Investing 5. Passive Investing 6. Semi-Active Investing 7. The Answer to the Question ‘How?’ 8. More on ETFs To Summarize 17. Investing Ethics 1. Safety in Investment 2. Insider Information To Summarize 18. Developing Your Own Edge 1. What is Your Edge? 2. Set Your Own Rules to Follow 3. In Parting To Summarize End Notes Bibliography