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The Simplest Thing You Can Do for Your Wealth (and Health)

I’ve received a few emails in the past from people saying that my way of teaching investing at Safal Niveshak is too simplistic…and that wealth creation isn’t as simple as I make out to be.

Interestingly, some even ask me for stock tips as a proof that what I teach here really works.

Like someone wrote to me on Twitter recently – “Top 3 ideas @ CMP batao toh jaane aap kitne safal ho.” (Only if you can tell me top 3 stock ideas to buy at the current price would I know how successful you are).

I replied – “If I had to do that, I wouldn’t have quit my job. I’m not here to prove anything!”

Really, Safal Niveshak isn’t here to prove anything. My aim is to just drill the amazing wisdom on wealth creation through investing that’s already out there, and in the simplest way I can.

It’s entirely upto you, dear reader, to take it or leave it.

But if you choose to continue reading me, please know that I will continue to tell you that, if you have the willingness and patience, managing your investing and financial life is simple, and not extraordinary…

…very much like George Clason wrote in the amazing book he published first time in 1926 – The Richest Man in Babylon.

(I’ve added this book to the 2-year course in smart investing I suggested a few weeks back.)

Almost nine decades later, Clason’s simple advice remains as true as it was then. Read below Clason’s…

Five Laws of Gold
You can replace the word “gold” with “wealth” below.

After reading these rules, which I’be taken straight from the book, you would know how true they stand (with minor tweaks) to this day, and that you need just these simple rules to succeed in your financial life…

The First Law of Gold
Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family.

“Any man who will put by one-tenth of his earnings consistently and invest it wisely will surely create a valuable estate that will provide an income for him in the future and further guarantee safety for his family in case the Gods call him to the world of darkness. This law always sayeth that gold cometh gladly to such a man. I can truly certify this in my own life. The more gold I accumulate, the more readily it comes to me and in increased quantities. The gold which I save earns more, even as yours will, and its earnings earn more, and this is the working out of the first law.”

The Second Law of Gold
Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.

“Gold, indeed, is a willing worker. It is ever eager to multiply when opportunity presents itself. To every man who hath a store of gold set by, opportunity comes for its most profitable use. As the years pass, it multiplies itself in surprising fashion.”

The Third Law of Gold
Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.

“Gold, indeed, clingeth to the cautious owner, even as it flees the careless owner. The man who seeks the advice of men wise in handling gold soon learneth not to jeopardize his treasure, but to preserve in safety and to enjoy in contentment its consistent increase.”

The Fourth Law of Gold
Gold slippeth away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep.

“To the man who hath gold, yet is not skilled in its handling, many uses for it appear most profitable. Too often these are fraught with danger of loss, and if properly analyzed by wise men, show small possibility of profit. Therefore, the inexperienced owner of gold who trusts to his own judgment and invests it in business or purposes with which he is not familiar, too often finds his judgment imperfect, and pays with his treasure for his inexperience. Wise, indeed, is he who investeth his treasures under the advice of men skilled In the ways of gold.”

The Fifth Law of Gold
Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment.

“Fanciful propositions that thrill like adventure tales always come to the new owner of gold. These appear to endow his treasure with magic powers that will enable it to make impossible earnings. Yet heed ye the wise men for verily they know the risks that lurk behind every plan to make great wealth suddenly.”

You don’t need to be a genius to understand and practice these simple rules. Or else, you may simply avoid them because they are too simple. The choice is yours.

The Richest Man in Babylon is a book I first read 4-5 years back, and re-read after Sanjeev Bhatia, a tribesman, wrote about it in one of his recent comments.

This is a must-read book if you are just starting out on your investment journey, or if you want to refresh the most basic yet most important rules of long term wealth creation.

You can get the book for free by clicking on the second link on this Google page.

Better still, buy it, read it, and then gift it to your child or anyone you love.

It’s cheaper than a McDonald’s Happy Meal, or a cold coffee at CCD. Amazing margin of safety, I must say! 🙂

Wealth or health: Simplicity rules
Here’s another example of simplicity that I came across recently. This nine-minute video talks about the single best thing you can do for your “health” starting today.

What you need to do for your wealth isn’t any difficult.

It’s just that you may either believe those who advise you to buy an expensive treadmill (from them) if you want to survive long years…

…or you may listen to Safal Niveshak that would always advise you to simply walk if you don’t want to die early.

The choice is yours. Take it or leave it.

If you can’t watch the video above, click here to watch.

Then, let us all know what simple rules you follow for your wealth and health. We’re all ears.

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About the Author

Vishal Khandelwal is the founder of Safal Niveshak. He works with small investors to help them become smart and independent in their stock market investing decisions. He is a SEBI registered Research Analyst. Connect with Vishal on Twitter.


  1. Anil Kumar Tulsiram says:

    Howard Mark, Chairman of Oaktree Capital Management commented about the “Democratization” of investments and how it has done more harm than good after credit crisis in his May 2009 letter. Here is the extract for those people who think they can make money just from ‘Tips’ without diligent and hard work.

    “It’s interesting to consider whether this “democratization” of investing represented progress, because in things requiring special skill, it’s not necessarily a plus when people conclude they can do them unaided. The popularization – with a big push from brokerage firms looking for business and media hungry for customers – was based on success stories, and it convinced people that “anyone can do it.” Not only did this overstate the ease of investing, but it also vastly understated the danger. (“Risk” has become such an everyday word that it sounds harmless – as in “the risk of underperformance” and “risk-adjusted performance.” Maybe we should switch to “danger” to remind people what’s really involved.)”

  2. Dear Vishal,

    It is true that wealth creation isn’t as simple as you make out to be is really true for those people who don’t have patience and long term goal oriented investment plan.

    It is indeed simple, if you have realistic expections on the returns and most importantly if you are not greedy.

    Everyone wants to eat the fruit immediately after buying a seed (even without planting the seed). First plant the seed and water it to grow the seed as plant and tree to enjoy the taste of fruit.

    • Everyone wants to eat the fruit immediately after buying a seed (even without planting the seed). First plant the seed and water it to grow the seed as plant and tree to enjoy the taste of fruit.

      Well said Ajay 🙂

  3. People feel that complex financial products can help them beat the markets. But they forget that markets are supreme. And when I say ‘they’, I mean those who are not interested in doing their due diligences before investing. These are so called average investors. Or you can say the fools to whom Warren Buffett refers when he says that ‘fool and his money are welcome everywhere.’
    Those who have been in markets know that there is no point trying to run after multibaggers or trying to time the markets. It is just about staying invested and spending ‘time’ in the market.

  4. Hi Vishal,

    First of all, I think , people should read your ‘About’ page and your philosophy fully and carefully and then should ask for tips. The people that ask for ‘Tips’ don’t belong here (SN) as you clearly mentioned.

    Secondly, as you said in one article 99% people do not read annual reports of the company and they want stocks that would give them 10 times in 2 years. How’s that possible if you are not ready to do that hard work?

    One should remember that Value Investing is slow but sensible way of investing, unlike other methods. LTCM is the best example of the investment that didn’t work despite having Nobel winning mathematicians working for it.

    Keep writing and continue this simple and sensible way of investing 🙂


  5. Sanjeev Bhatia says:

    Hi Vishal,
    Another post on a subject which is very close to my heart :). I have always been interested in keeping things simple, and indeed they are the most effective. But the fact is, people are constantly itching for some action. It is indeed ironic that when people ask you for “advice”, and when you say “Buy good companies/mutual funds, have discipline and keep patience”, they just ignore it and instead want some quickfix solution, which brings them to a high, the dopamine effect, forgetting the risk that it brings to their capital.

    If you consider the sayings of market wizards, their wisdom can be distilled into simple language viz: “Keep things simple, invest in what you understand, remain in your circle of competence, have adequate margin of safety, avoid leverage” etc. But people ignore these and want some complex products, Welcome PMS, ULIPS, Endowment policies, F & O, Day trading, stock tips etc etc.

    I came across The Richest Man in Babylon a few months ago through sheer coincidence. While reading it, got so engrossed that finished it in one go, got a copy each for both of my sons and asked them to read and re read it. The beauty of this book is that it teaches the basics of financial planning without being preachy. The story format makes it all the more engrossing. What I liked most about the book is that apart from teaching basic wisdom regarding wealth creation, it also covers the importance of Insurance and risk mitigation.

    Thanks for bringing it out so well. 😛

    Well for health, I play badminton 2 hours daily, 5-6 days a week, besides occasional walk / Yoga along with my better half. Don’t drink or smoke, have cut down on fried food, junk food, cola drinks. Yearly medical check up is a must including treadmill test. Going Great :D.

  6. Hi Vishal,
    as my IQ is very very low, i prefer things simple, infact INSANELY SIMPLE. and yes i walk 45mins a day.

  7. Simple and wonderful and as relevant today as it would have been when the book was written.
    In a book I am reading I came across “while life is a gift of nature, living a good life is a gift of wisdom”.
    And these 5 laws encapsulate the financial wisdom aspect very well. Not much more is needed to be understood.
    While life is simple and wisdom simpler, it depends on what kind of antennae and circuit we have and what we make of the array of signals.

  8. Nice article and comments, got me to download the ebook. The ebook shows 72 pages, but the book in the image in the blog looks thicker. I hope nothing is missing..anyways best wishes..keep Rocking..Tribesman and their Sardaar.. 🙂

  9. Prateek Chaudhary says:

    Sir i read the Richest Man in Babylon……and i can say that i feel so much more satisfied and balanced after reading it. Thanks for Sharing. 🙂

  10. Thank God i read this book because since ave being reading this book my business ave really change


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