Inflation | wealthymatters

Some Inflation Figures

June 29, 2011 3 Comments

Here are some inflation figures from the report ‘Higher inflation cost households Rs 5.8 trillion’from CRISIL.They can be plugged into the calculator here: https://wealthymatters.com/2011/01/22/inflation-calculator/

Hope this helps with your financial planning.

‘The study shows that growth of private consumption expenditure in nominal terms increased to nearly 17 per cent per year during this period from 14 per cent in the preceding 3 years mainly due to the rise in food inflation.’

‘The rise in inflation to 8 per cent per year during 2008-09 to 2010-11 from 5 per cent in the preceding 3 years Read more of this post

Filed under Tool Kit Tagged with consumer durables, consumption expenditure, CRISIL, discretionary income, food inflation, high income group, Inflation, Inflation Calculator, inflation expectation, inflation figures, lower prices, middle income group, non food inflation, postaday2011, price decline, price rise, prices, RandomBlog2011, wholesale price index, WPI basket

This Day That Year

June 25, 2011 1 Comment

wealthymatters.com This article was published in today’s Mumbai Mirror.Reading it took me back to another time when India was a very different place.I was then still in school.India was anything but shining.Poverty and shortages were so much a fact of life that few of us really had an idea of how poor we were since everyone around us was in the same situation and most people had very little exposure to what was going on in the rest of the world.There was no talk of India being an emerging/emerged nation.We considered ourselves as belonging strictly to the Third World and few asked why we should not want better for ourselves.Read the article below and if you’re Indian take a minute to pat yourself on the back for how far we have come in 2 decades.Take heart from it and know that we have it in us to overcome out present problems.And remember the story so that we are never again in the same situation. Read more of this post

Filed under Tidbits Tagged with bank gurantee, Bank of London, central bank, crude oil, default, distressed economies, dollars, emergency loan, emerging nation, finance minister, Fiscal Deficit, foreign exchange reserves, Gold, IMF, India Shining, Indian Oil Corporation, industrial growth, Inflation, INR, International Monetary Fund, IOC, money lender, non-resident Indians, NRI, oil, postaday2011, poverty, Rajiv Gandhi, RandomBlog2011, RBI, rupee devaluation, SBI, sell gold, shortages, State Bank Of India, Third World

Rakesh Jhunjhunwala on ET NOW

June 19, 2011 2 Comments

This is a video of a short interview of Rakesh Jhunjhunwala aired on ET NOW.I caught it on TV earlier this week.I thought of putting it up here for the actionable information it contains.So Gook Luck! But do remember not to be too greedy as even the legends can be wrong.

Filed under Paper Assets Tagged with bearish, bullish, Delta Corp, equities, ET NOW, Indian Markets, Inflation, interview, Investor, Lupin, Nifty, Nifty50, postaday2011, Rakesh Jhunjhunwala, RandomBlog2011, sensex, share investing, shares, stock, Titan Industries, trader, video

Rakesh Jhunjhunwala On Why India Is A Great Place To Invest

June 12, 2011 3 Comments

wealthymatters.com

Following are a list of reasons why Rakesh Jhunjhunwala believes India is a great place to invest:-

India owes its progress to the following factors:

Efficient capital allocation
Sustained earnings expansion driven by growth and productivity
8 per cent+ real GDP growth + 4 per cent + Inflation = 12 per cent + Nominal GDP growth
Corporates to grow faster than unorganised sector
Operating and financial leverage to kick in
Corporate earnings to grow at more than 18 per cent
Favourable framework for equity investing
Rising savings, yet low equity ownership — significant potential
Corporate governance
Transparency
Effective regulation Read more of this post

Filed under Theory Tagged with capital allocation, corporate governance, corporates, dematerialization, domestic consumption, earnings expansion, equity investing, equity ownership, favourable demographics, financial leverage, GDP Growth, India, Inflation, operational leverage, postaday2011, productivity, Rakesh Jhunjhunwala, RandomBlog2011, regulation, savings, small scale industry, STT regime, tax paradise, unorganized sector

Collecting Gemstones

April 23, 2011 3 Comments

Collecting gemstones is a fantastic hobby.Observing the play of light in gems and taking in their myrid hues is really very soothing.It is astonishing just how beautiful some of nature’s creations can be.Gem collecting is a hobby almost anyone can indulge in for all gemstones are not expensive.In fact many semi-precious stones cost just a few rupees.

Gemstones selected carefully and bought at the source at wholesale prices and held passively for a couple of decades can be reasonably good investments. They definitely keep up with inflation.

Gemstones are collected for their beauty.So taking your time to select the most beautiful stones is essential.Also it’s important to read up on the different ways in which natural gemstones are treated.Read up on whether treatments affect their desirability for other collectors.By paying a little attention to other people’s preferences while still buying gemstones you find beautiful will ensure a greater liquidity in future.Avoid paying retail rates unless the stone is extraordinary and even then bargain.Otherwise you are unlikely to ever recover the money you sink into your collection.The average jeweler will sell you a stone for two or three times what he paid for it wholesale and he’ll buy a stone from you for half of wholesale.

If collecting loose gemstones is not so interesting maybe you can buy gemstones on wholesale and have them fashioned into jewellery? This is another way of investing in gemstones.If you can handle the cost and quality control issues you can acquire beautiful jewellery at a fraction of retail prices. Read more of this post