Aaditya Chhajed, CA, CFA

Regret is the most enduring emotion in the lives of most equity investors. Because sooner or later, they make the mistake of getting out of a falling equity market, only to see it turn around and rise, three years out of four, and for the rest of their lives. Some get back in much higher; others never get back at all.  This process gets repeated during the next bear market and the next. No matter: the pain of regret is with them forever. Nor does the passage of time heal the pain. If anything, time and relentlessly higher prices make it worse.  There are, after all, only two master emotions: love and fear.  When markets are falling, investors fear permanent loss; When prices go up, investors fear missing out, and envy (another face of fear)  those who seem to be getting rich. I say again: that isn't "greed". It's just a different form of fear.  Don't envy the harvest of the rich. Envy their pl anting. - Bo Sanchez. Many years ago, there was a detergent adve...

Zooming Out: You should zoom out and see the big picture. If you're too close to the situation, you'll get entangled in things that don't really matter. And, they really shouldn't matter. Go too close and you'll get caught up with the noise at the signal.   While this is true for many aspects of life, let's discuss in the context of business and investing.  When you zoom out, you'll ask questions like;  Am I even in the right business? Does it even make sense to be in this business? Where is this business headed in 5, 10, 20 years from now? What need does this business serve? Will this need even be there 5, 10, 20 years from now? For example, an auto ancillary manufacturer, let's say a gearbox manufacturer may be very profitable right now; but if electric vehicles disrupt the internal combustion engine; will there be a need for gearboxes ten years from now?   And even if the need is there, how likely is it that my business will still be relevant fulfilli...

Firstly, I pray for you and your family's safety. In 20th Century India, the primary investments avenue included: Own business Real Estate Gold Fixed Deposit Money kept under the mattress In this blog post, let's have a look at how 21st Century's financially literates  look at investments: Own businesses:   Even if a substantial amount of net-worth is invested in their own businesses, they understand its risk (e.g. key-man risk) and the need for diversification. Real Estate: Unless their full-time business is real estate, they understand it is only for self-use. Gold: Even they believe gold is not an investment, but for self-consumption (jewelry). Fixed Deposits:   Investing in fixed deposits is like home quarantine of your young and bright children full of potential for years and years.   Fixed income investments are only for short term goals. Mostly retirees invest some part of net worth in fixed income due to lesser risk appetite and cash flow requirements....

There are 7 ways to invest in gold. Which one suits you? Have a look. Please read this post in horizontal screen mode. To view the below chart in 1 page PDF format  click here Parameters Sovereign Gold Bond Physical Gold PayTM Gold/ HDFC SafeGold Gold ETF Gold Mutual Fund Multi-Asset Mutual Fund   Investment Limit Min 1 gram; Max 4 kg in a year for an individual No limit No limit Min 1 gram Min INR 1000 Min INR 1000 Asset   Gold Gold Gold Gold Gold Equity + Debt + Gold Returns Higher due to interest As per gold price As per gold price As per gold price As per gold price As per equity, debt and gold value Interest on investment 2.5% per annum Nil Nil Nil Nil Nil GST on Purchase   Nil 3% applicable 3% applicable Nil Nil Nil Tax Collected at Source (TCS) on Purchase Nil 1% over 2 lakh 1% over 2 lakh Nil Nil Nil Income tax Long Term Capital Gain exempt; interest taxable   Long Term Capital Gain after 3 years Long Term Capital Gain after 3 years Long Term Capital Gai...

Fortunes are made coming out of recessions. Fortunes are made coming out of recessions. Fortunes are made coming out of recessions. Fortunes are made coming out of recessions. Fortunes are made coming out of recessions. ...and you won't have to nail the bottom. This post might actually make you a fortune. Remember how everyone in 2010-2019 wished they had invested in the market during the global financial crisis in 2008? Well, for those who missed it, you are getting a second chance now. Fortunes are made in bear markets for those willing and able to look past the pandemic. Business disruptions: Many businesses are getting disrupted in this crisis. It's no coincidence that half of the Fortune 500 and fastest-growing companies in the world were started during a recession or bear market. I feel this time is no different; strong companies will come out stronger, far bigger, better, and creating much more wealth than in the past.  Lessons from history: The historical lesson of ever...