Investment Fundas

Read about a new name in the investment world - Mohnish Pabrai. Apparently, this guy along with his partner bought themselves a dinner with investment guru Warren Buffett in a charity auction for $650,100. This is the first time I am reading about Mohnish. He is self -confessingly, a "shameless clone" of Warren Buffett. Apparently, this software engineer -turned- investment manager had applied to Berkshire Hathaway and was rejected by Buffett who claimed that he doesnt need any assistant as he preferred to work alone. Mohnish, like Buffett, also works alone and even says he takes naps while working in the afternoon. Now how easy-going and confident can one get?
I always believed in the power of compounding money rather than simply adding. I have always advised people about the virtue of long-term returns in equities. However, this doesnt apply to people with a low-risk appetite or a zero tolerance level to the short term vagaries of the market. It is not that I have not entered the capital markets with a short term view. But I have made some decent returns in the longer term than in the short term. People should realise that you can enter the equity markets only during your prime time and not when you are middle-aged and about 40ish. Also the most important thing is not to back out when you have burned your fingers. You always learn when you make mistakes !! So investing in equities is not for the feeble hearted. Another important thing is to keep abreast with the financial world and understand businesses. Read financial newspapers and magazines and watch business news regularly. I have personally seen the consequences of such disciplined investing. Remember, a little more money always counts! Do not put all your savings in the markets at one go. Invest regularly starting with small amounts and later on when you get the hang of it, you can increase the allocation. Invest according to your risk profile. It really helps when you find yourself slightly richer than what you would have been.

Rule of 100:- The thumb rule for investors is the rule of 100. Say, if you are 30 years of age, can allocate 70% of your investible towards equities and the balance 30 % towards safe investment options.

Its never too late !!!!!

Gun Control in the USA vis-a-vis India

One thing which is still commendable about India is that it has strict laws regarding the usage of armed weapons. Imagine if everybody had a right to own guns, the crime graph would jump multi-fold. You can buy a gun freely in USA as it is available everywhere just like you go to buy your toothpaste in India. Statistics reveal that almost 50% of the households own a gun. Check out this link (http://www.justfacts.com/issues.guncontrol.asp) for more statistics and facts about the consequences of poor gun control laws. How many of you have heard about school shootings in India? In the USA, it is regular occurence for children to carry firearms to school. The need of the hour is to enact strict laws on usage and ownership of weapons to avoid the Columbine school massacre in 1999 or the more recent Virginia Tech incident wherein a South Korean student shot dead 33 people and killed himself. Only the armed forces and the police should have access to weapons and that too only during official duty. However, this is near to impossible in USA where the anti-gun control lobby is arguably the most powerful after the tobacco lobby. Their stand is "Guns don't kill people, only humans do". In such a scenario it is impossible to enact such strict laws. India is a step ahead in this matter and getting a licence for firearms is near to impossible unless you are a big-shot minister, actor, businessman or a "reformed" gangster. Hope we do not see a Virginia Tech-like situation in India in the distant future too.

Rajnikanth - The Boss

I am simply enamoured by the "Sivaji" hysteria. To say that one man can command such a huge following is an understatement. I am not a Rajnikanth fan, but simply overawed by his persona. How many stars from Bollywood can match his persona? Khans and Bachchans are just Davids in comparison to this man from the South, who is a towering Goliath. How many stars can boast of about 700 fan clubs across India and many more across the world ? Considering that on an average each fan club has at least 25 members on a conservative estimate, no wonder political parties would give him anything for a favourable sound byte from him. And mind you, these fans are no ordinary fans. They live and die for him !!! To talk about being probably the richest artist in India, he is also the most generous and humblest human being as reports say. He never charges a fee for acting until the film is released and is a roaring hit at the box office. Legend has it that he has given away almost half his wealth earned so far to various charities and other organisations. It has been quoted by his old friend and colleague (a driver on Karnataka State Road Transport where Rajnikanth was employed as a conductor) , who had financially helped him during his early struggler days, that he stays a couple of days a year with him at his modest house in Bangalore incognito reliving his old days. Certainly, people and especially the Bollywood stars, should take a cue from his acts of generosity and modest. There is surely something to emulate from this man - The Big Boss of them all !! What say ??