When ever you think of investment , for the west it is equities and for us it is debt,gold etc..
I think the world saw one of the worst financial crisis through 2007 to 2009 and yet India Inc had a stable but yet sustainable growth . All thanks to a proven and sound track record of Indian Investment strategy in general and People in particular
We always believed in organic growth and as per the last SEBI data available , hardly 1% of the Indian investor's are in equity market and this % is now increasing
Well, equity is good if country's economy supports it and its bad when you have a growing desire to make a quick money yet you do not know where you have invested and
worst yet not knowing where your money has been invested
this is true for all the middle class families who would wish to grow their money and to that extent this book gives you a chance to open up to a new world called "Arbitrage"
Warren buffet did it , so did Microsoft and other companies who have given their shareholders a consistent returns....confused ??
Most of the strategy in financial market is purely a copycat of a well proven and well spun plan.
1. Invest in sustainable business
2. Do not invest in industries which you do not understand. Warren Buffet does not understand Information technology. He cannot see a tangible results. So he does not invest.
Did he lose ? yes he did but then cost of loss is much smaller than the profits he made in business he understood. Classic case is Washington News and other business he invested and continue to reap a huge profit.
At this point in time , Berkshire has given an investor more than 25% profit consistently over last several years
3. Look for low risk and High uncertainty market. Now this one is a clincher . Its like saying , Head you win tail you do not lose much !!!!
The case of Patel's from Gujarat ruling the Motel business in US is worth taking a dig and a learning to every one who would want to be entrepreneur
Motel business stands at more than $40 Billion in US alone and this figure could be much higher across the globe. And this is all run by Indians mostly.
When patels migrated to US , they barely had foot-n-Mouth existence and US was going through depression in 1970's..Motel business was losing and they saw an opportunity of arbitrage.
These business were selling at a cheap price....they bought them , turned them around into low cost models and made volume based profits which has sustained all the crisis of the market .
How did they see an opportunity which nobody could. How did buffet made profits when Index was losing and when wall street was downgrading the stocks , he was buying...How is it that one or two men could always be right when the wallstreet was telling it otherwise.....The answer lies in the Ingrained philosophy which these guys follow irrespective of market conditions and those things are told in very simpler terms in the book
Financial independence is one of the best gift we could give it to our kids . So we need to be knowledgeable enough to impart the right strategy and information to them
Let this book be a step towards that directions......
And lastly its interesting to go through Buffet's letter he sends every year to his investors...This letter gives you a different perspective of "Value Investing" and the power of Investments and
what they did differently which beats the market most often than not and more importantly tell's us where the investment guru - Mr warren Buffet sees an opportunity in coming days :)
No comments:
Post a Comment