The most important learning from Robert Kiyosaki is you cannot do a cut and paste in life.

I have been an investor, done some trading, been in equity research, sold equity shares, done equity placements, been a sub-broker, and been a main broker.

Seriously there cannot be a greater all round view of the market. I do make my investment after a lot of thought, believe in value investing, even trading positions are normally in good companies, and have beaten the index over 30 years +.

The most important learning is that even if I were to write my life story page by page, it is not likely to be of any use to anybody reading it. Yes generally broad principles can be learnt and even implemented but tactics will have to be done by YOU on a day to day basis.

There are some stunning transactions which I have NEVER been able to repeat. Keeping an open position and close during the settlement was easy when the settlements would last 15 days. With one day settlements, these transactions have to be funded. I have helped promoters reduce their stake in their company by getting excellent new investors – and for this got shares of great companies that I am still holding.

I have bought shares of Kajaria tiles when I received a great report on cement. Simple – both are derived demands from housing, right? I have bought Hindustan Oil Exploration at 18 and sold at 300+ and have traded in HOEL almost infinite number of times. I have traded in real estate but never invested in real estate. I do not mind doing a short term SECURED lending to a builder, but in a secured manner.

Sadly none of this is easy to put in a pattern and talk about on the blog. If somebody tries to copy, he/she can get killed. My long term investing strategy on the other hand is very, very, very biased. I have to believe in the quality of management – so a KCP or a Madras Cement will be in my long term portfolio, but India Cement at worst can only be in my trading portfolio. Radia tapes not withstanding, my respect for the Tata group remains sky high and I could be suffering from Confirmation bias. Murugappa, Sundaram, Birla (AV, and BK only), many MNCs have been there in my long term portfolio, as has been Hdfc, Hdfc bank, Hero Honda…

However to call my portfolio a ‘balanced portfolio’ across risk parameters would be wrong from a puritan’s point of view.

Robert Kioysaki thought (thinks) that there is a theory beyond all the happenings. Sadly true, the only learning from the past is “you cannot learn investing/biking /swimming by reading a book.

  1. Subra Sir,

    I think Kiyosaki thinking is product of American way of life which is Skim the Top Strategy,Can’t really blame him, he is a success even now,after all the bankruptcies & what not.While I will never follow such leveraged strategy,that may be comes from my upbringing bias,

    He wanted to make money come what may, i guess he is a very small fish in the markets where AIGs & Goldman sachs are saved by governments just to save 15-20 influential people, what does that say about financial world, it says once you become big enough by hook or crook to get into that PREMIUM CARTEL you can not be touched, extremely sad but true.

  2. Interesting insight.

    I think i put forward a comment to this effect on previous RK entry here.

    Cut paste wont work in life. However, books can be read to understand concepts. In RK books, the main philosophy(which was espoused in is first book and repeated in all his subsequent books) was to improve financial knowledge from a early age. This book brought a sea change in my finance perspective.

    However, the concept per say will not help. It is to be understood in its true spirit, worked on for some time, see its efficacy and continue only if it is providing results else try a course correction.

    I can say that because this process is working for me till now.

  3. When most people start aging, they start boasting about their achievements! Its true with Mr Subra as well. Too much of tom tomming off late.

  4. Thanks for sharing this insight.
    yes, broad based understanding is the max we can try for.
    We are here because there is value, and people who pick nits like Mr. tomtomming above, are free to go invest in FDs.

  5. What best I like about subra’s blog is he does not mind criticism – he lets everybody post whatever they want. I remember reading Subra saying he bought Pricol at 15 about 5-6 months ago. Now it is at 20. That is one helluva return. Sreedhar had said ‘I will not buy Pricol even if Subra gives it in writing’. Let me add Sreedhar money is made by investing, not keeping in FD with companies like Shriram Transport. I only wish I had bought Cholamandalam, Tata Motors DVR, and Pricol…even on the day I read about it on this blog……

  6. I read Subra’s blogs regularly, but don’t believe in sycophancy! Also, if you look at what I have done is follow Subra because I will not blindly buy a stock bcos Subra/RJ/XYZ bought a stock! I didn’t buy Pricol but bought Visaka industries and I am also extremely pleased with my buy!

  7. Wow Sreedhar. Reading through your comments you looked like a FD player, now suddenly YOU are talking of an equity purchase. Great. This is obviously NOT BOASTING – you are young after all 🙂 lol….

  8. Money will be made in FD as well. Remember theory of compounding? Let us not write off FDs. It should be part of the portfolio. Need not be the core though. May be what Sreedhar is hinting is use the blog for learning how to make money, how to avoid making mistakes in investing and not to use it as a stock tip base. Besides ‘regretting’ on not buying what Subra owns doesn’t actually help. Happy Investing!

  9. He he he! I have been in equity markets for more than 10 years my dear!! Now if I do a comparison with FD doesn’t make me a FD player. Yes, I do have investment in FD and remember you are compounding your money in FD as well(and capital is protected)!! Anyways, you guys continue with your adulation and better still blindly copy/paste what Subra is doing 🙂

  10. @Sreedhar-with age comes learning from past mistakes & urging us not to do that. Subra Sir has contributed a lot to increase my financial literacy and i am sure of others too.So we should not belittle his achievements.

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