Ace investor Shankar Sharma recently shared an intriguing financial success story — on how to build wealth without stock market investments. Sharma, who is also the founder of GQuant Investech, said that he advised his sister and brother-in-law against investing in stocks for decades. Despite their persistent enquiries about the stock markets, Sharma advised them to stay away from it.
In a post on X, Sharma revealed that they accumulated wealth through an alternative investment approach.
“My sis & bro-in-law live in a small town. Have pestered me for 35 years, ‘Tell us where/how to invest in stocks/MFs,” Sharma shared in his post.
So, what did he tell them? Instead of equity investments, he recommended a diversified portfolio focusing on fixed deposits, gold and land. “My Standard reply: ‘Stay away. This isn't for folks like you at all. Put 40% in good FDs, 30% in Gold, 30% in raw land 25 km out of town,” he added.
Following this investment strategy, Sharma's sister and brother-in-law managed to build significant wealth over time without worrying about economic fluctuations or market downturns.
“Today, they are stress-free, liquid & wealthy beyond dreams. Without knowing what's RBI, who's Guv, what's US Fed, what's Debt/GDP, what's trade wars, what's bourbon,” Sharma ended his post with this note.
Here's his post:
My sis & bro in law live in a small town. Have pestered me for 35 years " Tell us where/ how to invest in stocks/ MFs". My Std reply: " Stay away. This isn't for folks like y'all. Put 40% in good FDs, 30% in Gold. 30% in raw land 25 kms out of town".
Today, they are stress-free,…Sharma's comments come amid a turbulent phase for Indian stock markets, where extended corrections over global uncertainties have left many investors concerned. Although the Nifty50 index has not officially entered bearish territory, several segments of the market are showing signs of distress.
Replying to a user on X who said that some investors have thrived in the stock market, Sharma emphasised that such success stories were rare, stating that fewer than 50-70 people might have made significant wealth in the past 35 years.
Betey, we are just a handful of people who made serious money in markets ( less than say, 50-70 people in 35 years). As a percentage of total investing pop, it's minuscule.
We were lucky that's allResponding to another user's query on liquidity, Sharma said that “liquid” doesn't mean every asset must be easily convertible to cash instantly. Instead, if 50-70% of a portfolio consists of liquid assets (such as fixed deposits, gold, or cash-equivalents), the overall portfolio can still be considered liquid.
As long as 50-70% of your portfolio is liquid, that's called being " liquid". It's like an equity portfolio: 20-30% will be illiquid because max gains will come there. But what matters is the majority.
And land is liquid in 6-8 months or so, so not bad.Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
