1. Compounding and other Investing concepts

2. Why it matters
1)Human life/Asset pool- a)Age b)Optionality c)Salary growth vs. Wealth Growth 2)The future (Capitalism vs other societies).

3. The Real Compounding Formula
How it works?
Wealth=Time X Saving input/rate X rate of return per year.
vs. W=TSR
Understanding 3 variable and how to make them work for you.
Time (T)
-No control on.
-Easiest variable.
-Start Early.

4. Time
25 year man invests 100 pounds/month and get a return of 15% with a retirement age of 65(40 years of compounding). 3,092, year man invests 100 pounds/month and get a return of 15% with a retirement age of 65(40 years of compounding). 1,444,064 The first 5 years (10% of investment time) makes a difference of 100% percent to your pot.

5. Saving inputs
1)Maximize savings. How? - Tax efficiency (SIPP and ISA and Spread betting, training). - Better planning big ticket vs small ticket (travel, bulk shopping, eating out). - The wasted direct debits (movie pass, gym pass). - Declutter. 25 year man invests 100 pounds/month and get a return of 15% with a retirement age of 65(40 years of compounding). 3,092, year man invests 120 pounds/month and get a return of 15% with a retirement age of 65(40 years of compounding). 3,710,851 About 700,000 more for free!!!

6.   Rate of return(CAGR).
Understanding investment opportunity.
Risk to reward
Asset diversification
25 year man invests 100 pounds/month and get a return of 15% with a retirement age of 65(40 years of compounding). 3,092,376.
25 year man invests 100 pounds/month and get a return of 19% with a retirement age of 65(40 years of compounding). 12,024,576 
400% gain for 4% move.

7. The triple threat or atomic bomb
When all 3 variables move. 25 year man invests 100 pounds/month and get a return of 15% with a retirement age of 65(40 years of compounding). 3,092, year man invests 120 pounds/month and get a return of 19% with a retirement age of 65(43 years of compounding). 25,446,845 A 750% gain for a 3 additional years, 4% better return and 20 pounds more!!!!!!!
Source:

8. Investing
What is investing? Giving away your purchasing power today and more purchasing power tomorrow. In 2006, if you bought $500 of apple share in place of the Iphones today you would have $9,000 i.e. 9 I phones X

9. How to invest?
1)Financial securities(Equities, bonds, fund) 2)Real estate Vs. 3)Gold 4)Alternate (art, classic car, wine)

10. Equities What is buying a share ? Its buying a piece of a business.
What kind of business do you want to be in?
A business who’s intrinsic value is increasing
How do you measure intrinsic value increase
1)EPS growth without significant increase in debt
2)Increase in ROE/ROC – Capital efficacy.

11. Equities
What are the important drivers of a good business and how to measure them?
1)Qualitative drivers
1)Moat/ Durable Competitive Advantage
Demand
a)Switching costs
b)Product deafferentation
c)Brand loyalty

12. Equities 2)Supply Low cost supplier Niche 3)ECONOMIES Scale 4)Culture
4)Culture
5)Customer services
6)Marketing and sales