making a living OR making a life ?

You have notice this question every now and then by someone very often
"what do you do for making a living" ?

have you ever came across question as
"what do you do for making a life" ?


if you are thinking both are same thing , then let me tell you this two question doesn't have same meaning ?

making a living is done by each human on this planet as a basic necessity.

so lets concentrate what you do for making a life ? let me re-frame this question ?
what makes you to enjoy life the moment when you don't think twice to do it ?
this is called making life.

making a life is very important to have a prosperity.

you will always come across many individual who are making a living , but there are less humans who are making a life now in this century ?
if you find someone who is making life try to learn from them this will change your approach towards your living and add value towards your life.

and then apply this values to every aspect of your living --> one of which is investments principles.

Start this journey of new decade 2020 !!

Giving away your wealth is important to create more out of it

If you want happiness for an hour, take a nap.  If you want happiness for a day, go fishing.  If you want happiness for a year, inherit a fortune.  If you want happiness for a lifetime, help somebody.


what needs to be done for the extra wealth generated ? can it be used for helping others ?
Giving away wealth / time to others as a help to human community help you to become selfless.

This returns you to be more satisfied in life which helps to motivate and concentrate more against the work you do for wealth creation.

Its simple formula : the act which satisfy you more in life you tend to do more to achieve it again. 

what if you are just building wealth day by day and not using it for any purpose ?
you then secure your wealth in bank , security, assets etc.
later you start building fear of losing it so you keep track of it every now-n-then

has any human landed  to correct decision with a fearful mind ?

Science has show evidence only soul leaves body when you die rest remain as it is on earth human relation / wealth, so better to have purpose for it.

Early you realize the importance of giving the better you will act to achieve it. 

Markets all time high, why is it so ? when earning and slowdown fear is still around

you need to question again ? does market value works in current mode or its always as future mode or called it as forward mode ?

Market always discount before earnings arrival  and this is normal that the reason you see market reaching all time high since it has already predicted that earning are going to come positive  very soon.

go back to history of market across the world stock market always work in forward mode it always discount the future outlook.

remember market always work based on number of people thinking about future earning / growth optimistic approach and pessimistic approach and looking at the behavior of market people are more optimistic about growth is going to come and earning will be seen in numbers as well.

so evaluate area where you saw slowdown in business in past grab the best company stock among them.

Is it worth to buy properties as investment ? apartment space in cities ? or buy land ? or buy commercial properties ?

1) Investment in house property ?
 I dont recommend investing in apartments space in cities or any other space which is equivalent to house property since this comes under strict governance as no government in the world will encourage for house property price to go sky high since this comes under basic necessity for people.

you may invest but the ROI will be not much than 7 / 8 % CAGR
so think about it ? are you looking for just 7 / 8 % from your investment on house property ?
since such ROI even bonds / FD's can also provide which is more secure than house property. 

2) Investment in land property ?
yes this is an good option but require a deep study about the piece of land which you would like to invest in,
like area nearby for development ? time horizon for development ?  how the development will help the land to flourish ?
most of the people gets trap by hearing rumors and blindly invest in land space which later makes them difficult to find buyers when there is delay or no development happening.


3) investment in commercial property ?
 this is the one of best which I think of when it comes to investment in properties , it also requires deep study which helps to get handsome ROI since commercial space when  someone buys they look for business opportunity linked with the property and if its very attractive location for the buyer they are ready to spend to buy such space.

4) investment in co-living space ?
this is also one of the best investment where you can make investment in house property and  convert them to make user friendly with all necessity facility and then rent the space.

    

How to be patience and keep on holding your investments when all over discussion are running down about slowdown / recession / downfall ?

Its human behavior to have fear/greed, question arises how to deal with such behavior ?

In human life-cycle each one of us goes through up's and down's  same goes the business cycle as well sometimes even for a short downfall the fear is made such that people stop believing themselves and act based on others talks since its so easy to influence when  it comes to money as everyone has created an emotional attachment to it.

To deal with such situation you don't need to be emotionally attached to money as this is the factor which causes fear of losing and then people start acting without even thinking clearly.

So during slowdown cycle review your investments in stock  whether how much financially the company or industry is affected if its just too much fear created for a short fall ( 10 to 15%) use this opportunity to add up more since its a good deal to grab a business with bargain  this helps to keep the margin of safety as well.

Generally when there is feeling of fear in stock market , I go down to my mutual funds investments add up some unit over it since I get a bargain price

two mutual fund which I have in my portfolio

L&T Emerging Business Fund  -  60 % of fund it covers small caps rest 40% mid caps
Franklin India Blue-chip Fund -  100% large caps


small caps and mid caps stock get heavily discounted when probability of fear is high among stock investors so I use this opportunity to add some unit whereas  companies in large caps are the one who knows how to deal with slowdown and revive themselves.

Slowdown in auto sector or its a business cycle ?

I agree with Mr Rajiv Bajaj here  CNBCTV18 -Rajiv Bajaj

Its not Slowdown  its a business cycle which also happens in cement / steel / sugar / infra sector.

I don't think government will create any new changes in adding additional taxes to make this cycle go into worst state but government should support to bring  further bracketing in GST  for automobile to determine whats luxury and whats necessity since the public transportation is not world class in every corner of country to consider all private automobiles  as flat luxury.

having further break-down into GST for automobiles will help both consumers as well as manufacturers.

Companies should stop crying and review their business model to deal with such cycle. 

View on current stock market uncertainty Aug 2019

Current market and situation in the country shows a sign where people  are afraid to  become optimistic.
As market is driven by the probability % of optimistic and pessimistic , we need to be cautious what we are buying today and at what price ? if you are buying any stock of a company bcoz its down 50 / 60% from its peak , you are bound to get punished by the sentiment of people since currently probability of pessimistic approach is very high among people linked to the market.

Its time to  look for quality companies which can still make profit in such a scenarios and buy with margin of safety principle.
One of the sector which I feel where we need to focus on selection are pharma companies since people are bound to buy medicines regardless what sentiments of investors are which in-turn make profit for this companies.

So question is which companies among pharma ? I never encourage people to through company name since this make a person handicap to take self decision on buying and selling.
you need to research this by yourself and find high quality management / profit driven / profit sharing among its shareholders / margin of safety to make handsome return.


  

View on Pharma sector are you aware ?

Pharma  drug makers companies are consolidated now due to USFDA strict rules and standard to be followed and strictly maintained, which is actually good for this industries.

I think this companies now has already understood consequences if rules/standard are not followed and put strict policy within organization to follow the same.

This is called transition phase, look after high quality pharma companies which can bear such transition phase without any external cost and hit the glory in upcoming dates. 

View on Tata group companies

Tata group companies are re-structuring itself and adapting with innovative strategy  to unlock its future growth momentum  - this is a positive sign where company not only bring positive results on paper as well as unlock shareholder value.

One of the current news where consumer segment of Tata chemicals are moved to Tata Global Beverages.

From my prospective this is just the beginning there are more innovative strategy will be applied in its all group and subsidiaries which had always struggled to bring positive results.

keep an eye on this group companies  to add in your portfolio with margin of safety.

building and growing asset ?

why  do we need asset ? cant just controlling incoming and outgoing money flow should be enough to have a sustainable life ?
well it depends on thinking how well you can manage the area of expertise.

if you are good enough to manage and control your incoming and outgoing money flow you can have a sustainable life for yourself as well as your family, this requires proper planning and execution as well as modifying your planning as required.


well their are less people who does this kind of planning, bcoz the environment set all  around us is to build asset in physical form like land / property / gold / cash etc.

Well the biggest and most valuable asset we all have is our brain and its infinity thinking capability.

have your really thought about it ? human brain is an asset ?

Brain thinking capability - when you grow and enhance this asset the rest of things are just outcome of it  health / wealth / prosperous life.

Other question arises asset are for our next generation so they can have a better life .
its important we teach our next generation how to stand and walk their dream  this should be enough for them to choice and live their life as per their requirement rather passing asset .
I believe to pass asset of knowledge not physical asset in any form.
 

Will election result change the market outlook in India ? whom to vote ?

market outlook its totally based on people perception ?

If more number of people who think market will go into fall if current government doesn't get re-elected into full majority , market outlook will fall bcoz more people who think the same will execute their action which is directly proportional to market.


if more number of people who think market will not show any major affect , market outlook will not be changed. 1 day fall/gain and its back to normal.


I think market outlook will not change majorly bcoz India growth is not dependent on who runs the governance.

India growth is driven by its people who are changing day by day and knows who is the best to lead and support them in their growth track. Their will be always  people who's moto are based on religion /  spreading rumors / caste  but these people dont know citizen has change their thinking beyond this aspect .

any government which gets elected their role is how well they can support its people to grow.

my observation is it will only be affected by 1% GDP up or down based on Government support to its people whether its current government or someone else.

I will be using this opportunity to keep eye on companies which can get cheaper so I can get my position and margin of safety.

Whom to Vote ?

wisely think while voting and don't get influence what current affair is running on paper / TV / whatsapp / social media , think what was done in 5 years and what could have be done better.
remember we all make mistake and learn lesson from it and move ahead.
the person whom you are voting for  think what  has been done correctly by them  and if they have learned from their mistake ?  if yes  go ahead and vote them, bcoz this are the leaders who will support your growth.

how to create your own luck to gain income from stock market ?

Its very simple steps but yet very less turns up to follow it.


1) discipline
2) wise thinking
3) learning attitude , never stop learning  its a journey....
4) patience
5) positive attitude
6) living life with simplicity
7) having goal/vision in  life
8) analyzing  people's thinking who runs the company which you wish to invest
9) non-attachment of any personal emotion to company which you wish to invest
10) analyze your failure of investment and do accept your failure very important

this values are not build in days or months , it takes many year's to build but once you have them  in you  the power of compounding start.....