What concepts that I know and people do not know. Ok I mean which concepts that I know and shocks me to know that many people do not know. Not only not know, but even refuse to listen, learn and implement…
- Compounding – they will keep arguing that compounding does not work in equity, does not work in a floating rate bond, ..etc. till the cows come home.
- Arguing that “equity has worked in the past 40 years….does it mean…” yuck. Go hang.
- Paying a credit card in parts improves credit rating -one person SELLING credit cards was told this and he believed it. He would parrot it to his clients!!
- Just because you can afford something, it does not mean you need it.
- Just because you can afford an EMI you should buy something
- Concept of 50:30:20 – spending investing, ratios. Most people are angry when they hear this!
- Personal finance is 90% personal and 10% finance.
- Behavioral finance is easy to understand and IMPOSSIBLE to implement.
- Taking on debt to buy ANY asset is NECESSARY.
- Tax deductions like ppf, housing emi vs tax deductions like home loan interest
- thinking that dividends from companies and dividends from mutual funds are the same.
- Not knowing that when mutual funds say “tax free” dividends, they still pay STT, DDT, …
- Dividends in India are tax free – greatest myth.
- RBI/sebi/irda – have done a great job
- Momentum investing is easy. Value investing is boring.
- Market fluctuation is more dangerous than inflation
- Inflation is not so bad if it is a small number like 6% pa
- Inflation is inevitable in a growing economy.
- My father believed he should sell his car at the same price he bought it, I believe I should sell my house at a much, much higher price than what I bought it for.
- I can look at the portfolio of fund managers and build my own portfolio.
- I must have an opinion on every financial product, and activity.
- “Subra you are an expert how can you say you do not know Momentum investing, FnO, Cryptocurrency, compounding in equities……….”. Dammit, I don’t know, Idk!
- Risk can come from anywhere
- If you can predict, measure and prepare for risk, it is not a black swan.
- Leverage hurts….
the list is really much much longer…but enjoy these 25 now….
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