45 Lessons Cherished by People Who Make Money Through Investing

This book tells you the best investment that will make you money!
Well, you who are reading this article! You're lucky 😊

I'll give you the conclusion right away, the best investment that will make you money is,

Therefore, you need to think about investing in yourself first says the author. I hope the time you spend reading this article will also become an investment.

Let's learn together! 💪

The target audience is investment beginners

I also started stock investing this year. So, this was the perfect book for me.

For you who haven't started investing yet

Please read this book and join me in regretting, Why didn't I start sooner? (lol)

But you know, there's no need to regret it that much. Important things about the timing to start investing are written in it.

It is never too late to invest

It is never too late to learn either. Come on, let's get started.

Who this book is not for

Those who want to make money easily

Right?
But, please discard that mindset.

Even so, if there are those who still think "I want to make money easily," you shouldn't read this book. Because it is full of words like these.

Why can't you make money easily?

The claim of this book is that "you cannot make money easily," but why can't you make money easily? That is because,

investing is not gambling.

Do you think, "No way, investing is gambling, right?"

Certainly, if you try to make money without learning properly, just by following suspicious information from others, that is gambling. It is also called speculation.

Please remember the words from earlier. "Learning," "hardship," "effort," "sweat," "massive input"...

The only thing that can level you up from mere gambling to investing is

Now, next, I will introduce the specific lessons you can gain from this book.

Decide on your investment goal!

"I want to be rich!"

Yes, yes, that's right.
But, what will you do after you become rich?

"You save money to spend it." That is why you must decide on a goal.

What is your goal?

Bank deposits are also investments

Bank deposits are, in the end, the same as investing. Even with an interest rate of 0.001%!

That is the proposal of this book. And, if you learn properly, you can make a solid profit, remember?

Please do not trust others.

In fact, you don't even have to trust this book (laughs).

So, what should you trust?
Exactly.

The Investment Equation

The more capital you have, the better. Higher yields are also better. If the period is long, you can grow your investment significantly even if you have little capital.

And what supports all of this is 'knowledge'. This book says that you should work hard on your own to acquire this knowledge.

The power of compound interest is amazing!

A story you hear often lately, that growing 1% a day results in 37.78 times (not 3.65 times or 365%) in a year! also appears in this book.

Well, 1% a day isn't about money, but it is about compound interest.

Let's assume you have 1 million yen in surplus funds. Let's assume the
period you can use for investment is 30 years.

If you do nothing for 30 years, it remains 1 million yen.

Let's try depositing it in a bank at 0.001% for 30 years! I'm looking forward to 30 years from now.

The result is 1,000,300 yen. Wow... (taxes are not considered).

Now, what if you could invest it at a 5% interest rate? The result is
4.31 million yen! It became 4.31 times the original amount. That's nice!

By the way, the figure of 5% seems to be a relatively realistic number. It is said that
10% is ideal. At 10%, it's 17.44 million yen. Oh!

The person known as the god of investing, Warren Buffett, gets 20%. At 20%, 1 million yen becomes 237.37 million yen. Wow...

Since interest earns interest, the principal (red graph) is invisible (lol). I used
this site for the compound interest calculations and graphs.

Consider investing as the best defense

On my Facebook, ads for tax saving for salarymen often appear...

You cannot save more in taxes than you earn. In other words, there is a limit to tax savings. That is why this book says,
“Tax saving is merely a defensive asset management technique.”

Just as it is said that “offense is the best defense,” this book argues that instead of tax saving, we should go on the offensive of investing to increase our actual earnings!

Let's go all out

(But learning is necessary)

Summary

Actually, I started investing before reading this book, so I made a few mistakes. Fortunately, it was only a minor scratch.

The investment that earns you the most money is yourself

was the takeaway.

I learned that investing requires continuous effort and learning. In that sense, investing might be well-suited for people who love to learn.

That is all for today's lesson. Please come back again. 👋

Reading period: 2022/01/05-2022/01/29
First edition published: 2021/06/14

Who is Hiroaki Takahashi, the author of this article?