🎁 MUST READ 🎁 Dear Friends, Interesting - TopicsExpress

🎁 MUST READ 🎁 Dear Friends, Interesting read.....................if u want to become MILLIONAIRE Indian Investor Who lost Rs. 650 Crore by Investing in Property? In the Interview of Mr. Rakesh Jhunjhunwala is popularly known as Indian Warran Buffet, with Forbes magazine, the following interesting point I derived out of it. Rakesh, aged 54, is worth $1.86 billion (Rs.11, 346 Crore @ 1 USD = Rs. 61). This entire Rs.11, 346 Crore has been built during last 3 decades through investing in Indian equity market, clearly shows how big equity market is either one give time or get advice from the financial advisor to get the best return. Though he also trades at times, most part of his wealth has come from investing in high quality companies for long term and sticking on to this even the intermittent falls. Conviction is more important, than what we know about anything! Jhunjhunwala bought Titan shares in 2002-03 at an average price of around Rs 5; the stock then rose to touch Rs 80 and later fell to Rs 30, but he did not sell a single share. “That Rs 30 is nearly Rs. 400 today. And when it fell from Rs 80 to Rs 30, I lost Rs 300 Crore of value in my portfolio. But I never sold as I thought that neither EPS [earnings per share] nor PE had peaked and there was a lot of growth still to come.” Jhunjhunwala plans to give away Rs 5,000 Crore or 25 percent of his total wealth, whichever is lower, to philanthropy when he turns 60 on July 5, 2020. And Jhunjhunwala’s track record would validate the chances of both targets comfortably. In the recent past, we keep reading so many Indians are turn to philanthropy and donating multiple Crore of rupees. All of them are selling their equity share and none of them are coming from real estate builder or gold merchant as far as I read. Equity investors are not only creating huge wealth for themselves, and also passing so much of wealth to the society. For a time being, please forget about passing wealth to charity; let us make money for ourselves by understanding the huge opportunity we presently holding in our hands, the realization matters! He is one of the largest shareholders in CRISIL. In 2005, he has sold CRISIL shares worth Rs.27 Crore to buy a house in Mumbai. That house is now worth Rs. 50 Crore. The annualized return from his house stands at 7% during last 9 years. The CRISIL shares he sold for Rs. 27 Crore is now worth around Rs. 700 Crore. This works out to a whopping annualized return of 44%. The opportunity loss is Rs. 650 Crore, in addition to that 40 Crore worth of dividend. We don’t have wealth the size of Rakesh at any point of time, but we miss wealth making opportunity like above by buying a home in the initial part of our career there by losing opportunity to create wealth through equity. All we should do is to invest in equity in early part of the career and buy the house in the later part. Remember, your father never buy property in the beginning of his career. The beauty of creating wealth is to enjoy, not to get struck in buying property again and again and leave it to the next generations. It is after all one life to live and equity related investment is the only asset you can enjoy during your life time. Other investments are hardly. Since, most of our earning goes into the house; we never get an opportunity to create big wealth which equity is the only asset class which gives level playing field, capable of providing us. It would be wiser to create wealth during the first 20 years of career through equity and then go for owning a house. There is nothing harm in staying at rented house, so that you can’t compromise many things just because you bought a house at one place. Regards : Ashok Khare. 🙏🙏