_*Satisfaction, Spending & Investing*_

_Today's satisfaction in Spending is tomorrow's Misery_

_Today's pain in Saving & Investing is tomorrow's Satisfaction_

_One who understands this has a bright future ahead, but the one who ignores this need not ever carry a purse_ 😀

_*Wealth, Control & Sharing*_

An extract from Sri. Adi Sankara's, _Bhajagovindam_...

____________________

'Wealth is calamitous', thus reflect constantly: the truth is that we can get No Happiness from it.

To the rich, there is fear even from his own progeny. This is the way with wealth, everywhere.
____________________

🙂 yes, whether it was Sri. Adi Sankaracharya or Benjamin Franklin -

*Wealth stinks, if not shared / passed on & is left in one's full control*

For the Wealth one accumulates...one has the right to reflect & share as one wants it to.

But, for the Wealth that is *inherited*, he / she has to reflect as a *true trustee* to that wealth &  pass it onto the next generation but, along with the *values that protect, grow & share it*.

If one can't pass on the  *wealth value system* down the generations, how much ever wealth is *created & protected*, it is bound to get ultimately *destroyed & not shared*.

Create Wealth

Protect Wealth

Share Wealth

Pass it on in a *Value based healthy wealthy way* 🙂

_*Capital Markets, Behaviour & Kids*_

It doesn't *behave as*, the way we want it to behave as.

It doesn't *listen to*, the way we want it to listen to.

It doesn't *grow up*, the way we want it to grow up.

It doesn't *deliver results*, the way we want it to deliver results.

It doesn't *manage itself*, the way we want it to mange itself.

It tests our *Patience & Temperement*, to the possible limit 😬

Oh...this is NO CHILD or a TEENAGER 🤣

This is called a *Capital Market* (Equity or Fixed Income)

Btw....managing kids or capital market investments is the same 🙂. Same set of fundamental rules, apply.

*They just don't grow, we'll have to make them grow with _time & patience_*

_*Sale, Stocks & Investing*_

A fund manager used to always say this statement....

_When I need money to buy stocks for the scheme, I never get it; but when I don't want money, I get it_

I always agreed with him.

That's how majority of investors' work.

Invest, when markets go up 🙂

Don't invest, when markets keep going down 🤷🏼‍♂

_Shouldn't it be working the other way around?_

*How many take the faith plunge on equities, especially when the stocks are getting beaten ?*

Flipkart sale is beginning

Amazon freedom sale is also round the corner

*Stock Market sale is nicely on, now 🤔*

_*Thought process, Asset Allocation & Investing*_

*Why is Asset Allocation so important*...... __because it's the simplest tool to manage risk, liquidity & returns_

Else, we'll end up thinking as below -

During *bull markets* - portfolio comparison is done to the *equity markets*...... Why the miss in making these stellar returns?

During *bear markets* - portfolio is comparison is done to the *base fixed deposit rate*...... Why did we not make atleast a fixed deposit return?

A well thought out *asset allocation* ring fences us from these not so sane thoughts.

For that, we need to be clear on...

*Why have we invested?*

*How long is the tenor of our holding?*

*Do we need any cash from these long term invested assets?*

If the investments made do not match with the true responses to the stated questions..... _*there is trouble for sure*_

Waxing and Waning of a celestial object like *moon* happens every 15 days... _will it not happen in life, physical or financial assets 🤷🏼‍♂?_ *It Will* & *We need to have the strength to withstand these phases*

Savings & Debt Vs Taxes & Interest

Save and Invest - end up with Taxes

Borrow and Spend - end up with Interest Payments

What's a better option ?

_*Brands, Stocks & Returns*_

*Friend:* I always buy stocks of good brands & well known companies. I have a very good stock portfolio 😊

*Me:* Have you made money?

*Friend:*: Yes, Yes

*Me:* I'm happy 😃. What's the return you made? CAGR or Total Return, since you ran the portfolio?

*Friend:* (99% scenario): It's good, but I don't know the #. Let me revert 😐

A conversation mostly goes this way and surely ends the way, as above.

_Popular / well known / perceived good companies *do not equal* good stock returns_

Need some data?

Check the below table 😎

_*Markets, Markets & Markets_*

The 18 month carnage

*The Red Sea*....not inbetween Asia and Africa but in the Indian Equity markets

The impact of it seen in 3, 5 and 10 yr returns as well

Is this going to stay this way, bleeding at a slow pace and forever 😔

So.... SIP s did well 👇

The regular portfolio I keep talking about which I run for myself since Jan 2016... that's about 3 years and 7 months - *CAGR of 1.94%*

12 schemes with

1 equity hybrid,
3 multicaps,
1 focused fund,
2 mid caps, 
1 value fund,
1 small cap
2 large caps &
1 thematic

All the schemes have been purchased at random periods (when the market went down by some %) and via SIPs....

Am I stopping now?
NO

Do I continue to keep buying?
YES

Will this carnage continue?
I DON'T KNOW

Will this carnage continue forever?
DEFINITELY NOT

Can I hold onto my investments without a liquidity / cash flow worry?
YES

Does it hurt that the Hyderabad real estate market gave a phenomenal return in the last couple of years and I've not out a penny into it?
NO

Am I clear about the *Purpose and Why* I am investing?
YES

😊

_*Great Expectations vs The Big Reality*_

Investor starts investing with Rs.100/- and then....... *The Classic Thought Process*

_One acts when one is NOT SUPPOSED to act_

_One doesn't act when one is SUPPOSED to act_

Buy Right…Sell Wrong - happens

Buy Wrong...Sell Wrong - always happens

Buy Wrong....Sell Right - 樂樂樂

Buy Right....Sell Right - a few good humans get it

_*Value(s), Money & Life*_

*Value* -

The importance or usefulness of something

Principles or standards or behaviour, one's judgement on what is important in life

An estimate of monetary worth

Considered (someone or something) to be important or beneficial; have a high opinion of

*Price* -

The amount of money expected, given or required in payment for something

An unwelcome experience or action in achieving a specific objective

*Value* is perceived
*Price* is the reality

*Value*....in investing, is what we think it is worth.
*Price*....in investing, is what we actually pay to acquire the asset

*Value*....can be very deceptive
*Price*....is not an illusion

But...........

*Values*.... _in life_, *are not relative* to ones circumstances, situations, financial or monetary considerations, life stage, relationships etc.

*Values are Principles*… that one sticks to, in every breath.

*Price is the Experience*...that one has to undergo (good, bad or ugly), for sticking to those underlying values.

*Investing or in Life*, if we can't differentiate between the *value(s) & price*.....both turn out to be an expensive affair🤷🏼‍♂