If you went back in time, most ‘middle class’ people were spending a big fortune of their income on ‘essentials’. Imagine in the 1980s – a person earning Rs. 5000pm (almost a HUGE salary!) – could have been spending Rs. 2000 a month on household expenses. This was about 40% of the take home salary. […]
Does every business have to be profitable? To the common man, yes! Not true, not true, not true at all! Many people do businesses to: – keep themselves busy – to show to the world that they are doing a big business – hoping to make money 10 years, 20 years or 30 years later! […]
Bucket theory of portfolio management….i hope you have heard it. Instead of saying what it is, let me describe a case study – and you will understand it better! Mr. A is a retired person (retired means does not do any activity to earn money, and he is fully dependent on his portfolio for his […]
Well, one equities dealer was caught with his hand in the till….he is said to have benefited by Rs. 2 crores. Hdfc Trustee company has been fined Rs. 55 lakhs. The structure of an amc is such that the Trustees are responsible to certify that the internal processes are fine and working. Obviously it was […]
An amazing land legislation which says land can be procured only by paying 4 times the market value has been passed. This will mean the land owners will benefit, correct? No. Only Economics will work. Let us take a different example – if suppose a legislation was passed that women should be paid 1.25 times […]
There is only ONE reason why people get into debt. Living beyond their means. Make no mistake there is just one reason. However when people get into debt, and when they come to me, they justify on various grounds…I have very little sympathy -Satyam is never Sundaram, but always SHIVAM!! What are the main reasons […]
Last week I spent some time with a friend evaluating his portfolio. Like many of my friends he had started his SIPs about 10-12 years ago and had done well in his investing, simply by being disciplined, not arguing too much and letting the compounding go on! However, his wife did not know too much […]