In the 1980s the Japanese manufacturing might was hurting the Americans. Clearly US ‘experts’ were talking about how all the manufacturing will now be Japanese. Everybody ‘knew’ that the 1990s will be the decade of the Japan. American cars were useless, American watches were too expensive, – anything that America could, Japan could do better. […]
Now imagine the stress this puts on the government (remember government pays indexed salaries and indexed pensions) finances. Low real returns has a very bad impact on the investments that people make – and the asset allocation has an impact on the credit market also. So the government has to tackle inflation – in a […]
Inflation story continued……… Psychological Impact of inflation is quite harsh on the investors and savers. Economic theory says when inflation is high, people will tend to spend more – because there is no incentive to save. This is true to a very limited extent. Most people get so scared that they start saving more and […]
this article appeared in money mantra….as a lead story on inflation. Inflation is perhaps one of the least understood risks in investing. Understanding the power of small numbers is not easy. That is the reason why people find it difficult to understand the impact of compounding too – after all inflation is just negative compounding. […]
If you do not know why a big brokerage house is doing something, copying them because they are a big house is a sure way of wealth destruction. If you cannot find an attractive idea, keep your money in the bank account. Cash does not bite. If you want to trade, think like a trader. […]
Mark Mobius the famous fund manager (incidentally he runs the most disciplined scheme ever in India – Templeton India growth fund, the only fund in India that has been ALWAYS true to label) says the next ‘Dubai’ could be in Mumbai or Shanghai. One kid in our office excitedly rushed to me (working on the […]
I deal with ‘Mature and old’ organisations as well as new organizations. Here are some observations regarding some of the so called ‘successful’ mature organisations: Most of them need some rejuvenation if they have to still remain alive. They largely rest on their laurels. Some of them have terribly performing subsidiaries which have no claim […]