On Practicing Gratitude


wealthymattersFor the last couple of months, I have been practicing gratitude. I believe that doing so forces us to ‘be mindful’ as the Buddhists put it. That way we become more aware of what is happening to us at any given moment and we start living each moment more consciously and so get more out of life. Also if we get into the habit of being grateful for something, we will be conscious of its importance, and so unlikely to do or allow anything to be done to destroy what we regularly give thanks for. So, if we are regularly grateful for the food we eat, which we are aware of comes from our farm, and so and so helped grow it and transport it, we are likely to value the farm and the people who work there and their skills. We are unlikely to let the farm run to ruin or sell it out of hand. We are unlikely to disrespect the people who work there and lose the benefit of their abilities. And ultimately, all these things that we surround ourselves with are symbols of our wealth. If fact our wealth comes from these production systems we control. So, if we’d rather be wealthy and remain wealthy, practising gratefulness is a good exercise. Just, set aside a few seconds a day to mentally count the many good things you have enjoyed in the course of the day, and get started on practicing gratitude. Read more of this post

Virtual Equity


wealthymattersHave you ever wondered how billion dollar infrastructure projects are financed by the private sector in India? Here is the story:

Say there is a Rs.10,000-crore project, with a 70:30 debt-equity ratio. The promoter needs to put up Rs 3,000 crore as equity . Suppose he can scrape together Rs 1,000 crore. He will inflate the project cost to 15,000 crore.

His required  equity contribution now goes up to Rs 4,500 crore but he gets credit worth Rs 10,500 crore, more than enough to finance the entire project.

During implementation through promoter-owned companies, money will be taken out of the project, to fund a part of his equity contribution and to grease the palms that allow such an inflated project cost to go not just unchallenged, but actually blessed.

While implementing the project, he will start another project, take money out of it to fund the remaining part of the original project’s equity contribution and to service the loan on the first project once its construction is over. Then he will start yet other projects, to actually finance the second project, and so on. The first project will turn into a cash cow, if this string of loan-financed projects can continue to mushroom long enough for the loan on the first project to be fully paid off. Read more of this post

Apple’s Negotiating Formula


WealthymattersApple wants what Apple wants, when Apple wants it and how Apple wants it. And Apple will pay for it. If they don’t get what they want, they just say no. And they typically don’t come back a second time. And they may declare war on you. - Ryan Lokey

Results of Falling Crude Oil Prices


wealthymatters1. Reduction of India’s crude oil import bill.

2.Soft crude oil prices threaten growth in oil producing economies and has an effect on foreign fund flows into India.

3.Falling crude prices means lower income for oil-exporting countries, leading to slowdown in global demand and fall in Indian exports.

 

Sleeping On Cash


In a lighter vein, if you have ever wondered just how much cash you could sleep on, literally, here are some figures to help you get started:

wealthymatters

My calculation is Rs 10 cr max to construct a reasonable sized double bed platform of cash. Though I have doubts about the comfort of this bed of cash!

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