For Whom Wealth Matters
September 11, 2014 Leave a comment
If a man won’t chase a woman, is either because he’s not all that into her and so does not want her enough to chase her . . or he knows how she feels about him and he’s having fun with it . . or he sees what is good for him but is not able or willing to go after it…….blah, blah, blah……
Do you really care about the reasons/excuses. Are there really no better specimen to pick?
September 5, 2014 Leave a comment
The elusive perfect start-up, that is something I have been trying to discover for more than 30 years and more than 100 start-ups! I have not learned the answer, but here is what I have learned:
The perfect start-up needs a complementary team:
It needs a passionate and driven visionary who is the product person.
It needs a capable execution skill that can deliver the product or service against that vision.
It needs people skill to make sure that the best people are recruited and retained and that conflict in the company is resolved.
It needs administrative skill to make sure that as the company grows the wheels stay on (this skill can come a bit later – it’s not needed on day1)
These skills do not need to be present in 4 distinct people, but most often it takes at least 2, and usually 3 or 4 to lead these areas. Read more of this post
September 2, 2014 Leave a comment
Equity can also underperform other asset classes in the long term, depending on your time of entry and exit.
Equity cult members believe that equity will provide ‘fabulous’ returns if you avoid timing and invest regularly through systematic investment plans (SIPs). But, if we analyse what the Sensex returns would have been after doing monthly SIPs on the Sensex for 10 years, this is not the case.
The chart to the left is annualised returns (CAGR) on 10-yr SIPs on the Sensex. For example, the first data point of 34.55% on 31-8-1994 means the CAGR of 10-yr SIPs (i.e. SIPs from 1984-94) and the last data point of 13.37% on 31-8-2014 means the CAGR of SIPs from 2004-14.Dividend yield on the Sensex is ignored because retail investors will be buying Sensex using index funds and the small dividend yield will be negated by the expense ratio charged by these funds.
As seen from this graph, there are times in the past 20 years (i.e. mostly between the bear markets of 2001 and 2003) when equity investors have actually lost money even after doing SIP on the Sensex for full 10 years.
This is not to say that equity is a bad asset class or SIPs are not beneficial but that SIPs only reduce volatility and no in way guarantee fabulous returns from equities in the long term.
Also see in how many years equities have not been able to give 10yr CAGRs of 10%.So now you know what to do when banks have FDs offering 10% or more over 10years.Same goes for bonds, especially of the quasi government variety.
September 2, 2014 Leave a comment
There might come a time when you are considering taking a bill consolidation loan to consolidate your debts. This will help to put all of your debts into one loan and give you one payment and one interest rate to make every month. Having this will help you to pay off your debt quicker and will allow for a total payment to be smaller every month. When you set out to look for your bill consolidation loan you will find that a lender will offer you two different types. These are a secured loan and an unsecured loan. Before deciding what type of loan is best for you it is important to know the difference between the two.
Secured Debt Consolidation Loan Read more of this post
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