Alexander Never Did What He Said, Ceasar Never Said What He Did – How Small Investors should do Now?

March 17, 2014

Alexander Never Did What He Said, Ceasar Never Said What He Did – How Small Investors should do Now?

Wish You All A Very Colourful Holi Festival! In the long weekend, I read the Chankya of West - Nicolo Machiavelli. He was an Italian Diplomat in early 16^th Century. His famous book “The Prince” is the guiding principles for the persons in the Authority.

One of the most appreciated and the most followed principle of the Prince is – “Preach and talk about Morality/Honesty/ Integrity/Hard work and Principle Centered life to the normal people in your state. Make them follow all of the above. You also appear doing the same, but in reality……do the opposite!!”

In the last 500 years, Western politicians, Bankers, Management educations, Media have mastered this principle like anything. In fact, it had spread over to the whole world as every where western education system is being taught.

Who Is Alexander and Who is Ceasar?

Alexander is the government in any country, the people in Power. They promise something before they come to the power and they do the opposite when they get the power. Indian election to be conducted is the live proof of the same. To take care of their vested interests, they have to take care of Ceasar.

Ceasar is the business community world over. They have the money. They can buy any thing with their money. They are so powerful that they can install and remove the governments.

If you want to understand their power……..just refer to the World Economic Forum. As per it, there are 85 odd people in the world who have financial power equivalent to 50% of the world populations i.e. 85 people equal to 3.6 billion people !!

The situation in India is also similar. In India also 17% of GDP comes from 55 people only. If you put in figures……in 2013, India’s GDP was 1841.7 billion USD, 17% works out to about 300 billion USD. Just convert it to rupee and you have Rs.18600 billion. 55 people have Rs.18600 billion i.e.Rs.300 billion per person on an average while Indian per capita income is just Rs.75000/-(USD1400) at 2013 prices.

Lessons for Small Investors:-

Beware of Media:-

Media business world over is controlled by Government policies and it runs on Advertisements from business houses. If Media do not take care of their interests……its business is at stake.

That’s why Mr.Buffett always says….switch of your TV. You will be saving your tons of money, if you atleast stay away from TV during Market Hours.

Think how you will invest, if you are one of the 85 in the World or 55 in India?

1.   Will you read the balance sheets?

2.   Will you go by Technical Analysis?

3.   Will you watch Business Channel? Will you read News Papers / Magazines before investing?

4.   Will you read election surveys to decide about the next PM?

5.   Will you be investing in Bank FDs / Mutual Funds / SIPs or Insurance Policies or Pension Plans?

What Will You Say Now?

I am 100% sure that you know whatever I have written above. I am also sure that you would tell me like Duryodhana said in Mahabharata - 'Janami dharmam nacha me pravritti ...',

We know the right thing, but we can not practice the same now. May be someday we will do. May be if we are born in business family, we could have done!!

My empathy is with you. But have you ever thought……why you can not follow the path of 85 people now?

Because when the choice was to be made, you made the wrong choice. You chose security over insecurities. You chose certainty over uncertainty. The end results…you yourself have imprisoned you in the cage of Security oriented thinking. You feel happy in that. You do not want to take chances now!!

You are happy being Consumers / Employees / Small Investors / Analysts / Economists / Consultants, etc. for the rest 85 people.

Our Strategy:-

We always ask our self – How will a guy with Rs.30000 Crs.( one of the 55 guys in India) will invest now? Where he will invest? How he will benefit from Money printing of the Governments world over? If inflation is going up, can he afford to keep his tons of money in cash?

We keep our eyes open on news about their investments. We are not in a hurry to earn 15% to 25% per annum from the day one. Like them we keep patience once we invest. We know, we are not in the most privileged 55 now, but since we have started…we will surely reach there someday. If we do not reach there, we will be happy to provide platform to our next generations!!

Can you have a Cake and eat it too?

If you do not want to leave the comfort of your security oriented life and also want to take small steps towards joining the team of most privileged 85 guys, we have a solution.

Join our advisory services. It will surely help you building your financial muscle so that someday you can really take big steps. You have two more advantages if you join us now…you are getting 50% discount to our regular price and market is also moving up.

So, you have 3 aces in your hand.

1.   Taking a step towards financial freedom.

2.   50% discount to normal price.

3.   Market moving up.

With 3 aces in your hand, if you are not ready to play the game, please do not blame yourself, government and 85 guys!! Accept it as your Destiny.

Have a Great Week Ahead.

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

Live With Passion…Invest With Passion.

Hitesh Parikh.