Dedications

Having got introduced to the stock market in the recent past few years, I found that if you cut off greed which I couldn’t; cut of speculation which I try to and mess up; cut of hot tips which I scavenge for and burn myself; then it is a decent area to make money in the long run. Buy small amounts and of good companies and avoid penny stocks which may leave you penniless. Buy for long term with a horizon of 10 to 20 years

Ever since I got married I ensured all investments were done with mutual consent and agreement of my wife, which most of the time were disagreements and end up as always with her having the final word. So money matters she calls the shot, and all my funny matters I do it without her knowing to avoid getting shot.

So every month when it is salary day, we split the money for various expenses, as household, emergency, entertainment, kids and pocket expenses. So leading a disciplined life did have a lot of advantages, leaving us with a small amount to invest. For my wife investment means only fixed deposits and nothing else. Besides that she does not want to know anything or venture into anything. Her policy was simple if the principle is not safe, hell with it.

My greed of being the next Warren Buffet was always dunked by her into the waste bucket, and the way she did it, got me wondering why she could not take up basket ball as a sport. One day I told her “Babes we need to invest in stock”. She thought I was gone crazy, and enquired why I am interfering in kitchen matters. That confused me further, till I realized she showed me a packet of Chicken Stock saying we have enough for the month. If I had to tell her that it was investing money elsewhere, I would be the chicken for the next meal.

Finally cajoling thru CA friends who were convincing unlike me, she gave in and we started our tryst with the stock market. What was surprising was her interest taken to understand how the machinery works, wonder has anyone understood it. So we started watching stock market news where she would focus on the news ticker and I on the pretty lady presenters. We ensured money put in ‘A’ category of companies listed. That speaks of our knowledge acquired we knew the A of stock market and doubt to graduate any further. So it was L&T the first investment, then Power Grid, and one day it came to investing in Reliance. Strangely it was an emphatic no for an answer from her.

I told her it is in the A category of listed companies and a small movement in Reliance can move the markets. She was adamant that she will not invest in Reliance. Trying to prove my intelligence (wonder if I had any), we got into the usual disagreements and I tried to explain about Dhirubhai and his journey from Aden to India to being one of the richest, blah, blah. After hearing me patiently she had one question if all that wealth couldn’t have him bring up kids who could be united what they will keep a company united. If the siblings are trying to prove who has a better and bigger charter plane and the most expensive house in the world, she was not interested in funding their luxuries. If today one sibling is running a utility company and ripping the common man with huge tariffs and shows that as profits made for share holders, she was not interested in that kind of money.

I was dumbstruck with her depth of reasoning. She her final question was who these siblings go to when they can’t sort out the differences. It is their mother. Then I understood her reasoning, she just wanted to be a good Mother to our kids and inculcate values than the greed I was pursuing. For her money meant one of the means not the only means for a survival.

Yes we still do occasionally invest in the stock market in small drops, and I enjoy stock best when it is a broth of chicken stock.

# posted by Sunny Fernandes @ 2:44 AM