We have seen in issue 7, that our life and businesses having a relationship & similarities and due to the understanding of our life help us to make better investment decisions.
In the current issue, I try to relate other similarities between our life and the business. I am going to explain profit and loss statement of the company with examples of our life which make it simpler to understand.
I have talked about compounding and benefits of compounding in all of the previous issues of Simple is the better series. Now, from this issue, I am going to discuss similarities between our life & making an investment and how we can learn many things in investing from our life. We also can learn many things in our life of the equity investment.
We can able to create wealth while we have a thorough understanding of the business and the phase in which it is operating. We need to work hard on an understanding of the business for protecting damage to our wealth and also as an investor, we are becoming a partner of the business not an owner of a piece of paper.