E for Equities

Equities are a lot more interesting I tell you than talking about eggs, its better to eat eggs and talk about equities whilst you are doing that.

 

Tell me which one of the following do you think is the best :

 

1.) Working for someone, working your ass off and getting a fixed pay for the work, whether you do well or not, maybe get a slight bonus if you work too well.

 

2.) Working on an enterprise, making people work for you, making decisions, devoting hours, carving a niche for yourself in this world

 

3.) Get both of the above whilst you are holidaying!?

 

Well, equities can help you achieve that you know, so much is written everywhere about it, so many examples around us, the richest people in our world, everyone owns it and yet they are so dreaded, so little is known about them, why is it a word that brings so much caution by one and all.

 

Why can’t we simplify it?

 

If you can understand the power of equities you will be that much easy placed in life, secondly now after understanding the power equities is how do you ensure that power works for you, this is the tricky bit ain’t it?

 

Tell me, would you not own a business like HDFC Bank or a company like Asian Paints? What if the whole company was up for sale and you had the money to buy it out? Would you want to own a company like that?

 

Honestly, if there is anyone that has NO as an answer must get their brains checked. Both of the above are simple examples of some great companies who have been generating a lot of profit and also have a pretty bright future.

 

Now, if you have some money that is spare, lying about, which you know you would not need for a good period of time, why not deploy here? I mean whats wrong in making people work for us? Here we do not even have to take any decisions, nothing, just buy and continue our life as we were doing. Give it enough time and you can be laughing your way to retirement.

 

Most of us Indians save, we save a lot, we die and pass this bounty to our heir’s but do not spend some money as we save it for a need that might arise, fortunately for many this need never arises and the money stays, I wonder if that money were deployed in equities where in people give their blood and sweat to run companies and you get a share of the profits without having to spend either!?

 

Selecting a stock can be pretty tricky, however, buying an index shouldn’t really be rocket science, the BSE Sensex has given over 15% annual returns over the past 30 years, buying the index should be easy shouldn’t it?? Wouldn’t someone buy the index and hold for twenty years?

warrenbuffettq5
 

History tells us that the index oughta give atleast returns that equal the sum of GDP & Inflation, with Inflation and GDP both high in India the future for equities bodes quite well. If you do not take a part in this development that this nation is going to make and choose to be where you are, there is no one but you, yourself to blame.

 

Read, ask, inquire, get the gist of it, for if you understand equities trust me your life will be better for it!

 

Remember : “Risk comes from not knowing what you are doing.” – Warren Buffet

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5 thoughts on “E for Equities

  1. Bikramjit says:

    Hmmmmm surly something to think about.. but as you say it’s the fear of loosing the hard earned money that keeps people like me away.

    Its the fear after all spent some hard days in earning what i have now..

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