urbanization India ? find companies which will benefit from it ?

3 basic essential things human being need on this planet

Food to eat
House to live
Clothes to wear

when urbanization takes place we human try to make our needs more organized for better life.

How we organize it ? let do a observation ?

Food to eat :
1) better method to prepare it  - what it take to prepare our food ?
find companies which are supporting equipment / service to prepare food ?

House to live:
2) it should be affordable and close to work location ?
find companies which are providing this service ?


Clothes to wear:
3) brand name  , this is what people rush to ?
find companies which are know for its brand and are opening their service with new urban area ?

this are just 3 point which I have written down there are a lot of companies which support in background to make this 3 needs available.

eg: it take cements to build a house
it take raw material to build clothes
it take utensils to prepare food

research more on this to find such companies and invest with a margin of safety. 

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.