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Showing posts with the label #inflation

Petrol in 1963 was 72 paisa per litre. Your investments beating inflation post-tax? Otherwise...

your capital may erode slowly. You might have to work in later stages of life even if you don’t want to. In 58 years, petrol has approached INR 100 per litre w ith the implied growth in price of 8.86% per annum.  Similar is the inflation rate for other expenses as well.  Simply, if your money doesn't earn at least 8.86% post-tax, you are losing its value. Human nature is a failed investor. The human being is naturally bound by a complex of fatal misperceptions diminishing the capacity of executing a successful lifetime investment strategy.  Cultural factor is a major factor contributing to the essential human incapacity for successful investing.  Humans, in general, cannot distinguish between currency and money. Currency is a medium of exchange. Money is a store of purchasing power. The only rational lon-term definition of "money" is "purchasing power" is a perception that is culturally unavailable to human mind. - Nick Murray   Invest for maximum total REAL ret...