Retire At 40 With Passive Income (2018)


I came across this article yesterday, though it would be worth sharing.

usually I avoid posting about “retire early” people, because it’s normally about FIRE culture and mr money moustache impersonators. Nothing wrong with at, it’s just that the idea is so simple it doesn’t really need elaborating on…

• Index funds

• Be a tight-wad

• Extremely high savings rate

This guy isn’t a tech guru or anything, he’s just someone who studied the market, developed a philosophy and was able to retire at an aged 40.

The guy’s name is Mr Bagria. He and his wife contributed £176,0000 into their ISA (essentially withdrawable pension)…

He was a computer programmer, but invested in the stock market and retired at aged 39.

He stopped adding any new money to their accounts after 2000. Those initial investments, have grown to create a multimillion pound portfolio and it provides them with an incredible six-figure income on which zero tax is paid…

Here are his methods:

• He owns a highly concentrated portfolio of or roughly 10-15 stocks at a time.

• He researches his stocks for 6 hours per week, usually at night.

• He has read almost everything there is to read on investing - more than 100 books. He credits author Jim Slater for getting him into the book The Zulu Principle. he is also an admirer of Warren Buffett

• He targets companies which will grow. He seeks those with a recent record of 15% to 20% annual earnings growth which he predicts will continue…

• He will also invest in sectors of the economy which he feels are unloved.

• He recommends investing in companies around you - “It’s easier to see the companies around you. I can get a better feel for them”

• He invests in a small number of stocks, so he stops losses at 10%…

• If a stock loses value, he pulls out.

• His typical holding period is 2-3 years. He usually sells when a stock has fallen from a peak, rather than selling at the top.

• All dividends are re-invested and he generates a six figure income from his holdings…

Key to his success has been correct navigation of the dotcom boom. When a friend who was not previously interested in stocks, asked him about them - he pulled his money out of the market

He has had bad times, like when his portfolio declined by 22% in 2008…

Read the full article here - it’s fascinating stuff:


That will who those pesky self righteous index funders!