Investment lies…continued
A few days ago I had done ..a post called Investment lies that you have been told. Was not sure whether I could find enough..but here is a second set..I think it can go on for a few days. Would love it if people told me WHY I think it is a lie..some of them look true, do they not? Ha ha:
1. It is a great time to be buying real estate, a 25% return is almost guaranteed!
2. Equities have given a 22% return from 1980 till date. At the same rate the index will surely cross 100,000 soon – just check out on excel.
3. Debt mutual funds are a great way to invest in debt markets – and is superior to other forms of debt investing.
4. American companies will stop outsourcing and start creating jobs in America.
5. Venture capital funds and private equity funds are a great way to invest in high tech companies.
6. Warren Buffet always speaks in favor of good governance, good investment principles, and is easy for the common man to understand and implement.
7. Sebi (SEC) is there to prevent market manipulation, prevent insider trading and protect the small investor.
8. CEO pay (and in general senior executive pay) is well deserved because it is determined in a competitive environment.
9. The Fed works for the good of the common man.
10. Richer the country, happier the people.
Ashish
I liked the last one Subra Sir 🙂
pravin
1) 2) 3) AND 5) -totally ignoring risks.focusing on potential returns with blinkered eyes.even LIC and UTI investors will be bailed out by taxpayers.well,theft is safe,as long as you are the govt.
4)Only if American workers suddenly invent a production technique which is more efficient and cheaper than foreign workers.
6)Buffet post 2008 seems to be double talking hypocrite.he is like any other businessman,interested in erecting barriers to competition.he wants to taxes increased for the well off while personally,he donates wealth to the private Gates foundation.he should trust bureacrats in DC and send them his money.
7)public choice theory clearly explains why SEBI or any regulator is essentially interested in serving their own interests.servin the investor doesnt pay.serving the companies they ‘regulate’ pays dividends.regulatory capture is not an anomaly -it is the rule
8)in general yes.but when investors have been lulled by regulators into not doing due diligence,all bets are off
9)ha ha.”independent” central bank is an oxymoron.the fed is probably the most egregious example of regulatory capture.
10)yep.only if they are rich in health,wealth and wisdom