Aaditya Chhajed, CA, CFA

I want to talk about the five things that virtually everyone I speak with is trying to achieve with his/ her money. Some people have only one of these goals. Some have two or three. And, not infrequently, I meet people who, with a little prompting, turn out to have a bit of all five. And since these five issues are the main emotional and financial concerns in my own and my family's life, I can effortlessly (and quite genuinely) spark a tremendous amount of empathy on this topic and so can you.  The Five Great Goals of Life are: The endowment of a long, comfortable, and totally worry-free retirement, with no compromise in lifestyle, and no real concern about ever running out of money. The need/ desire to intervene meaningfully in the financial lives of one's children , during one's lifetime, and/ or in the form of legacies. The ability to fund, in whole or large part, the education of one's grandchildren. The capability to provide quality care to parents in their later ...

I recently read the book- The Education of a Value Investor by Guy Spier.   This book is about Guy Spier’s journey from that dark place toward the Nirvana where he now lives. This blog post includes  my top learnings from the book.  8 Rules developed by Guy Spier to be followed while investing: 2.        1. Stop Checking the Stock Price o    As Buffett has said, when we invest in a business, we should be willing to own it even if the stock market were to close the next day and not reopen for five years. o    We also know from behavioral finance research by Daniel Kahneman and Amos Tversky that investors feel the pain of loss twice as acutely as the pleasure of gain. o    The Rule: Check stock prices as infrequently as possible. 3.        2. If Someone Tries to Sell You Something, Don’t Buy It o    As Charlie Munger has joked, “All I want to know is where I...

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...

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...