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New Millionaires-How Are They Making Their Money


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Alok Kejriwal On Marwari Business Traits


The Marwaris are so successful at business,so it makes sense to learn from them.In the article below Alok Kejriwal of contests2win.com writes about what he learnt from his family business.

The Seven Subjects I learnt at Marwari Business School (MBS)

On the last day of my ICSE exam (10th standard finals), my Nani (Grand mother) offered me a free seat into the Marwari Business School. I was 16 and I had the opportunity to go and sit in my Nana’s (Grand father) office.

I took up the offer.

These are the seven subjects I learnt:

M = Monetization Mentality

wealthymatters.com

Monetization above everything else!

For Marwari’s, money pretty much means everything. It’s the ‘currency’ of success – pun intended. People are sized and measured not by their waist sizes but by the width of their balance sheet. A Marwari’s religion is making money and they meditate on it.

What Monetization and its terms means is also unique for Marwari’s.

For instance, I learnt that Revenue was not what you ‘bill’ or ‘pass-thru’ or ‘recognize’. Revenue was always what you ‘net-net’ earned that came in your coffers.

Revenue is bottom line for a Marwari – not top line. Read more of this post

Wealth And The Golden Middle Path


wealthymatters.comAsceticism was experimented with and rejected by the Buddha before he attained enlightenment.

Buddha preached contentment (santutthi) and limited desires (appicchata).However, contentment and paucity of wishes must be accompanied by effort and diligence, not by complacency and idleness.

Poverty (dadiddiya) is never praised or encouraged by the Buddha. “For householders in this world, poverty is suffering” “Woeful in the world is poverty and debt.”Many passages in the Buddhist scriptures exhort lay people to seek and amass wealth in rightful ways. Among the good results of good kamma, one is to be wealthy.The possession of wealth by certain people is often praised and encouraged in the Pali Canon, indicating that wealth is something to be sought after. Among the Buddha’s lay disciples, the better known, the most helpful, and the most often praised were in large part wealthy persons, such as Anathapindika. Read more of this post

Psychology And Bad Market Timing.


wealthymatters.comEvery stock investor whether a technical or fundamental or value investor ultimately needs to take a call on whether he/she wishes to buy or sell at the price Mr. Market sets at any given time.How much an investment ultimately nets a person depends on the timing of the buy and sell decision and the actual price at which the transaction takes place,despite all the theories of averaging out and time in the market and reversion to the mean.

The following is a checklist of mental mistakes that may affect a person’s decision to buy or sell and cost a him/her dearly. The checklist is from Whitney Tilson’s presentation ‘How to Avoid – and Profit From – Manias,Bubbles and Investor Irrationality”

•Failing to Buy

–Status quo bias

–Regret aversion

–Choice paralysis

–Information overload

–Hope that stock will go down further (extrapolating recent past into the future; greed) or return to previous cheaper price (anchoring)

–Regret at not buying earlier (if stock has risen)

•Office Depot at $8 (vs. $6) Read more of this post

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