Value investing is better than real estate

Value investing is a gateway to all the wonderful things I learned in life

Value Investing > Real Estate

Around 2003, I bought a flat in Whitefield, Bangalore. Its value has more than doubled in 20 years.

I invested approximately the same amount on the stock market during the same period. In spite of all the market gloom and doom, its value also doubled.

Why am I saying investing is better than real estate if they have reached similar values?

For buying the flat, I had to lock my money in a lump sum and make heavy monthly payments. In contrast, I started investing with as little as ₹1,000. Each month, I invested a different amount. In some months, I was able to invest, but in many months, I couldn’t. I increased the investment amount, as my revenue increased.

Despite this, the absolute return has remained the same.

Those are financial returns. Efforts in life are not only about first order effects. As far as life’s unseen effects go, value investing has been an enormous benefit to me.

Value investing became a gateway to all the wonderful things I learned in life. It opened doors to understanding of mental models, psychology, anthropology, structured thinking, effective communication, and a desire to learn constantly. These topics have been a great help in my career development.

If I were 25 years old now, I would invest my money now so that it can compound. Buying a flat could wait.

There are good comments when I shared this on LinkedIn. You might like the conversation there:

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Under: #wealth , #wins