Effects of Smaller Kitchens and Bigger Bathrooms on Investor Performance.

31^st December 2019

Effects of Smaller Kitchens and Bigger Bathrooms on Investor Performance.

Dear Fellow Travellers,

Greetings from Hitesh! This is the last blog of 2019. I wish you all a Very Happy 2020. May Almighty Shower HIS Choicest Blessings on you and your family members. I have observed a unique shift in House Constructions these days. Size of Kitchen has reduced to 50 Square Ft While Bathrooms and Wardrobes are getting 70-100 Square Ft in a midsize apartment of 500 Square Ft.  While Flats may become bigger – but the size of Kitchen is not increasing. However, in bigger flats – we have Walk-in Wardrobes and bigger Bathrooms.

There are two perspectives of the same and it affects the investor's performance negatively. Let us see how?

Looking Good and Work Pressures:  -

There is an urge to look good/successful/positive to the outside world. To make it possible – more and more clothes/accessories/footwear/purses are assumed to be the most needed. To keep them all properly, a bigger space is needed.

For eating – we have a lot many agencies to deliver food at home. All you need is a plate and facility to heat up. So, a smaller kitchen is okay. Moreover, due to JOB and odd working hours – it may not be possible to cook food also. Women are also doing top jobs and they too have a lot of work pressure and office politics to deal with. They prefer to have ready-made foods or cooks in the house.

Market Centric Investors V/s Investment Centric Investors: -

All focus is outside only. Look good outside. Food outside. Study outside. All life is outside or others oriented. This leads to MARKET CENTRIC behavior in investments.

The most often asked questions by MARKET CENTRIC INVESTORS are – Market Kya Lagta Hey? / What is FII buying? / What is HNI and BIG INVESTORS doing? / How will the be Budget? / What will be GDP growth? / How will be the performance of the economy next year? / What will be the inflation rate going forward?  

If you honestly answer them – you will have to give OPINIONS only. However, correct anybody’s answer may come out to be – it is an opinion only.

Moreover, by going correct in the above area your bank balance will not change. You will not make a profit just by getting correct answers to the above questions. It is the same as Looking Good and Feeling Happy Within. You may look good but chances are very high that you may not feel happy within. Though, you may feel happy by making other people jealous of your outward success. But this is momentary happiness and it will not last long. 

What should one do?

One needs to be Investment Centric. Investment Centric is a guy who works on the following questions – What is the company doing? How competitive is the company in its market area? How is management credibility in the market? What has been the performance of the company in the last 5 years? What is the EPS of the company? What is the dividend pay-out? What is the likely performance in the current year? What are the valuations of the company at this moment?

Just answer the above questions. You will have only FACTS and FACTS. No opinions. For the expected performance you can predict with reasonable accuracy if you understand their business models and talk to the company people and their suppliers/dealers.

Answering them will help you change your BANK BALANCE in positive territory.

What is the HISTORY of Successful Investors say?

Buffet never wastes his time in predicting the market. He invests his time in understanding the company. The same goes for all big and highly successful investors. Once they study the company – they wait for the market to move the prices. Many companies – in spite of great fundamentals go into losses or do not move up – but they have patience/patience and patience.

Market Centric guys will become unhappy when the market moves up and his companies do not move up. They also become unhappy when Market Goes down and his company also goes down.

What Next?

Stephen Covey had said that SUCCESS IS INSIDE OUT PHENOMENON. Look within and you will get answers for your success in 2020.

I wish you all great success in 2020. If you need help in Investments / personal issues – you can approach me. 

Follow me on Twitter @hiteshmparikh Or on Whatsapp - +91-9869425399.

Live With Passion…Invest With Passion.

Hitesh Parikh.