For Whom Wealth Matters
September 25, 2012 Leave a comment
This is a pretty nifty tool to draw up short reports of shares of various listed Indian companies.You can access it here.Go ahead and type company names in the search box and draw up mini reports.
Hope you find this tool as much use as me.
September 21, 2012 2 Comments
The return of capital is more important than the return on capital.So it is important to avoid the pump and dump operations of promoters and market operators. Here is a list of safer promoters compiled by jigs of BSE India Market View
August 1, 2012 2 Comments
Some interesting observations from Alok Kejriwal :
“After my first round of VC funding, I ran into my uncle at a dinner. He had read about the financing in media and cornered me. ‘So you’re rich! Why are you looking so gloomy?’ he said. ‘Huh’ I asked? ‘My Company’s the one that got funded, not me! No one got rich. The VCs got poorer and a long arduous road lies ahead of me to return the money to the VCs many times over’. He chuckled and said’ ‘What nonsense! The first rule of the funding game is to siphon out 25% of the funds and make yourself-rich. Investors can be dealt with later’. Shucks… hadn’t I heard that story before? Many of my relatives have floated public issues that were nothing short of scams and they still boast about it!
This ‘get rich, siphon out’ philosophy left so many old industrial houses bankrupt. They were never capitalized to take advantage of acquisition opportunities and punished their shareholders so harshly that they could never raise capital again. Think Mafatlal, Dalmia and many more. Even today I meet embarrassed professional managers working in ‘family’ firms who get paid salaries in ‘half white and half black’ to avoid taxes! Read more of this post
July 21, 2012 9 Comments
The diagram on the left is from http://wamyentrepreneur.wordpress.com/2012/07/21/route-to-possession_part-two/
It drives home a very important point:If you would be wealthy knowledge is important, but acting on your knowledge is more important.You make money in proportion to the amount of Right Action you have done rather than Right Information/Knowledge/Thoughts you have.As the author puts it ” Knowledge is not possession, this is to say that to know does not imply automatic acquiring; it merely opens our eyes to possibilities and like belief, it must be acted upon for it to yield fruits…”
A person who picks a good stock at random and a person who does so using a fundamental analysis of the company are at the same situation.They have arrived at the right prospect.Now the important thing is who buys how much and hangs on to it.The only advantage the person who can do the analysis has over the other is that he can find other opportunities.But in life just one right decision and one right action can make a person wealthy (and the reverse is also true.)
An action bias is fundamental to becoming wealthy.Knowledge,experience and patience just help fine tune one’s ability to accumulate wealth.
wealthymatters 