Investments and interests
My learned friends, although all are aware of the pros and cons of investments, having read posting of losses suffered by various local circle members & having suffered huge losses of my hard earned money in investments of various nature, i wish to pen down the following for general information. It is said that a chronic patient is a half doctor. I am neither a Chartered Accountant having thorough knowledge in Finance nor a Lawyer having thorough knowledge in Law matters but a great loser due to the advice given by my "well wishers"for a "fruitful" earning to lead a "peaceful" future!
(1) Never lend money. If you do so, either you lose your money or gain an enemy;
(2) Never invest money for gain through betting. (Look at the fate of Pandavas in Mahabharat); This includes Share trading, Fixed deposits with companies of all or any sort without any exception;
(3) Only Invest in Government Securities/organisations such as Post Office, reliable banks even if the returns are lesser and taxed;
(4) Investment in precious metals having easy liquidity is another option could be trusted if preserved securely;
(5) Investment in lands are good, provided the records are legally tenable & the title deeds are clear as a long term investment with 110% legal clearance and verification by known reputed lawyer even by paying hefty fees. Fly by night operators are many in this field. I know an illiterate widow lost her property and was made a permanent slave in her own house as servant. None of us could help her as legally she lost everything on record to very "close" relative who closed her chapter!
Beware and Be aware as per a sloka in Sanskrit, a book, a woman & an ornament lost is lost for ever! more
(1) Never lend money. If you do so, either you lose your money or gain an enemy;
(2) Never invest money for gain through betting. (Look at the fate of Pandavas in Mahabharat); This includes Share trading, Fixed deposits with companies of all or any sort without any exception;
(3) Only Invest in Government Securities/organisations such as Post Office, reliable banks even if the returns are lesser and taxed;
(4) Investment in precious metals having easy liquidity is another option could be trusted if preserved securely;
(5) Investment in lands are good, provided the records are legally tenable & the title deeds are clear as a long term investment with 110% legal clearance and verification by known reputed lawyer even by paying hefty fees. Fly by night operators are many in this field. I know an illiterate widow lost her property and was made a permanent slave in her own house as servant. None of us could help her as legally she lost everything on record to very "close" relative who closed her chapter!
Beware and Be aware as per a sloka in Sanskrit, a book, a woman & an ornament lost is lost for ever! more
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When there is a gain to someone obviously someone has to lose. Both players can't be winners at the same time. A man who fights with the sword has to die by the sword. My uncle erstwhile manager of Dena bank at Mumbai was addicted to race & gained a fortune beyond expectations only to be lost in one stroke. I was guided (or misguided) by stalwarts of the trade & got addicted by reaping riches initially only to repent later by losing manifold. The problem is the temptation & over confidence that doesn't satiate. Question is whether the risk involved is worth trying? While at Mumbai, i saw jobbers coming to stocks by limousine & later walk back home or other way round. Anyway better be away from all vices & addictions is to be wise. Thanks for comments. Probably i lack "do you have it in you?" phrase. more
Jun 30
i strongly believe only way to fight inflation is to invest in shares .. may be thru mutual fund route . Please use SIP and keep time horizon long say 5-10 years . You will reap rich rewards. Please please do not discourage people to invest in shares / mutual funds and advise people to invest only in government securities alone . What is important is proper allocation across all asset classes and assessment of risk. more
Jun 30
You can really make good money in share markets if you have some knowledge and experience. I suggest lay public to invest in shares when the markets are about to recover from a steep fall, and enter good companies and attractive sectors at a given time, and not trade but stay for good time, say 5-20 years, to reap benefits. Shares fetch you dividends and appreciation. You can enter with small amounts unlike real estate, which needs large sum of money, and is a big hassle to deal with. A relative of mine would buy Economic Times, and check the rates of his holdings, and not look at the real news and interviews with experts and company personnel, which provide an insight into developments. Unfortunately, even the slightest change economically, socially, politically and globally will have positive or negative impacts on the share markets. Mr Krishnan has probably not learnt enough tricks of the trade, or chose wrong timing to enter or exit or has put short-term money for long term or vice versa. A thorough knowledge is required for investing. For example, I had suggested my son to pick up Kajaria Ceramics about 5-6 years ago at about Rs 30-35 after reading a recommendation which gave details of its expansion, reduction in cost of operations, expansion of territories and such other details. Now it is trading at around Rs 1200 after a bonus issue, and a split is round the corner. He has gained well. So, it is wrong to go by the experience of Mr Krishnan alone and not make risk investments. Other forms of investments hardly yield anything better than losses due to inflation, except real estate, which is extremely bothersome to handle, and needs large sums of money. more
Jun 29
International trade between "south" and "north" which earlier was limited to purchase of selected raw materials, soon began to trade of finished products. A demand constraint of the developed world was compensated by the supply constraint in the developing world. Economic interest of developed nations, focused on availability of adequate raw material and cheaper manpower in the developing region. The G-8 nations could soon embrace the rest of the world into a new World Trade Order which in turn encouraged the developing world to adopt a more “liberal” economic policy. Some developing states hastened to join the bandwagon of "liberalized economy", but others waited to learn from mistakes of early committers and devised strategies to steer clear of risk. It is recognized that risk increases if FDI goes far beyond 10-15%. more
Jun 29
Three or four decades ago Manufacturing and Service sectors were considered the pulsating hot spots for money spinning. Its success was driven by the need of the consumer/ customer (ie. growing customer base) which kept increasing with the increasing population (better health care & life expectancy and low infant mortality). Industrial/ economic growth variously empowered individuals viz. passive earning (deposits shares etc.), salary or profit. Demand for material comforts increased with economic development. The marketability of consumer goods and durables was predictable, maneuverable and profitable to the extend banks considered such endeavors as most performing investments. In early 90’s construction of house was considered non-performing. As the customer base was getting saturated, managers searched and offered newer options, like variety, efficacy, reduced cost and visual superiority. Loss reduction, efficient production rate, value addition, reduced stocking time, quicker turn over etc. were meticulously researched for cost reduction. But over a period, growth of market in response to such steps too became tepid gradually threatening the annual growth rate of many sectors. more
Jun 29
