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Something To Remember


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Patience And Wealth


Walter Mischel’s marshmallow test is one of the best-known studies in the history of psychology. In the 1960s, Mischel, then a professor at Stanford, took nursery-school students, put them in a room one-by-one, and gave them a treat (they could choose a cookie, a pretzel stick, or a marshmallow) and the following deal: They could eat the treat right away, or wait 15 minutes until the experimenter returned. If they waited, they would get an extra treat. Tracking the kids over time, Mischel found that the ability to hold out in this seemingly trivial exercise had real and profound consequences. As they matured and became adults, the kids who had shown the ability to wait got better grades, were healthier, enjoyed greater professional success, and proved better at staying in relationships—even decades after they took the test. They were, in short, better at life. Read more of this post

Eike Batista’s ‘The Heart of the Matter’

wealthymatters.comEike Batista is Brazil’s richest person and ranked 7 in the world.In his book ‘O X da Questão’, translated:’The Heart of the Matter’  he recounts his trajectory in the business world and offers tips on entrepreneurship.Following are excerpts from the book:

1. “Nobody is happy alone. To share experiences is always a good thing.”

2. “You grown as a person when you face your own challenges, or stressful moments, as I like to say. A good entrepreneur must be prepared to evolve in adversity.”

3. “The good seller is the one who is also a good listener.”

4.“Believe in yourself. If you doubt in yourself, you won’t be able to face your co-workers. Or the market, for that matter.”

5. “Don’t quit on the first adversity. Believe in your intuition, but try to be down to earth as well, paying attention to research and polls.”

6. “Don’t think you are unstoppable or foolproof. Don’t think that the only way your business will work is through perfection. Don’t aim for perfection. Aim for success.” Read more of this post

Gold And Diwali

wealthymatters.comBuying gold on Diwali is a well established tradition in India.Have you ever wondered how well you would have done if you had bought gold every Diwali day for the last 10 years?Here are the stats:

In the past 10 years, gold has been a great investment. If you had bought some gold each Diwali over the past 10 years, then these are the gains you would have seen by the next Diwali in Rupee terms: 9.3 per cent, 11.7 per cent, 8.0 per cent, 26.6 per cent, 11.5 per cent, 32.7 per cent, 23.5 per cent, 22.8 per cent, 36.7 per cent, 16.5 per cent.Compounded, the total gains are 670 per cent.So you could say ‘Sona hee hai, koi fizool kharchee thodey naa hai.’(It’s gold, not a waste of money)and make a purchase this Diwali.

But before you go overboard  ask yourself how likely it is that this run of unprecedented returns in gold will continue.Or in concrete terms ,how likely is it that 10 grams of gold will cost Rs 2 lakh in 2022?

My answer is:Your guess us as good as mine.But if 2 lakhs per 10 grams sounds absurd do take a look at this chart compiled by the RBI.Way back in 1992 or in 1970 what would you have said about today’s prices?

Life is uncertain.Time,wealth and happiness are transient.If gold,especially ornaments, make you happy,go ahead and buy them.You might not become a billionaire from holding them .You might even lose money. But they will be a surer source of value than the newest Tab or TV.


Global Wealth Pyramid


Bullion India

wealthymatters.comHere is my new discovery for today:Bullion India.I tried it out today and found the sign up easy and customer service good.I find it an excellent way to buy gold and silver at good rates.Given the tiny units in which you can buy the gold,it is the place to go to make token purchases on auspicious occasions when the prices of precious metals generally rise.Also this site is an excellent way to accumulate precious metals a little at a time as there are no storage costs and commissions.

Quote For The Day


India’s Shrinking Business Cycle

If ywealthymatters.comou have a ladder of fixed income instruments  or are looking to take on debt,it helps to be able to have a feel for the interest rate cycle.I came across come interesting inputs to help in this effort in yesterday’s newspaper.

The chief takeaways of this article are:

1.By watching the long-term investments in infrastructure,maybe 10-15 years into the future,we can call the GDP growth rate.At present it is  likely to be 5-7 %.

2.The current RBI governor has commented that the potential growth output frontier has shrunk to about 7.5%.

3.During the growth phase of the business cycle,when the growth reaches,85% of the capacity,which is about 6.5% growth,RBI will likely apply the brakes.

4..The business cycle time period has reduced from a previous  7-8 years to 1.5-2 years.

Diamond Cut Guides


wealthymatters.comThe beauty of a diamond depends more on cut than any other factor. Diamond cut has three primary effects on appearance: brilliance (the brightness created by the combination of all the white light reflections from the surface and the inside of a polished diamond), fire (the dispersion of light into the colors of the visible spectrum, seen as flashes of color), and scintillation (the flashes of light and dark, or sparkle, when a diamond or light source is moved).

When a diamond is fashioned from a rough stone, the cutter must balance optimal cut (and therefore appearance) against maximum yield (cutting the diamond to maintain as much carat weight from the rough stone as possible). Because many customers are willing to pay more for a larger, fair-cut cut diamond than for a slightly smaller, well-cut diamond, there is pressure on the cutter to sacrifice appearance for weight. This is why the cut is so important.

For the larger and more expensive diamonds dealers will be willing to provide more detailed grading reports with diagrams ,as above,showing proportions of the diamond.Use the tables below to ensure you are getting the best value for money. Read more of this post

More About Diamond Shapes


The round cut diamond is the most popular diamond shape, representing approximately 75% of all diamonds sold. Due to the mechanics of its shape, the round diamond is generally superior to fancy diamond shapes at the proper reflection of light, maximizing potential brightness.

Virtually all round diamonds are brilliant-cut, meaning they have 58 facets (57 when there is no culet).

Round diamonds cost more on a per carat basis than fancy shapes for two reasons; the demand for round diamonds is very high, and the yield is relatively low. Because more of the rough stone is lost in the cutting of a round diamond, the cost of each carat retained is higher. A typical round diamond (for example; a 1.00 carat, F-colour, VS2-clarity, Ex cut) may cost 25-35% more than a similar fancy shape.

The colour chart below provides a general guide for evaluating color in round diamonds. Read more of this post


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