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Saturday, November 30, 2013

Sachin Tendulkar Was A Long Term Investment

So farewell to a glorious career.Farewell to Sachin Tendulkar.Dignified man who let his deeds on the cricket field do all the talking.His place in history is secure.


Sachin Tendulkar had a 25 year career.When he started playing the price levels were:-

Rupee versus US $ was 19
The BSE Sensex was at 800
Petrol prices were Rs 9.85 Ltr
Diesel prices were Rs 4.10 Ltr
Gold was Rs 3100 per 10gms

If you had bought some of these financial assets the returns would be:-

Rupee versus the US $ today is 62
The BSE Sensex today is 20790
Petrol today is Rs 74
Diesel today is Rs 57.50
Gold price today is Rs 30440 per 10gms

Do the maths?Tear your hair out.Whatever.

If your investing career had been as long as Sachin's,it might have been as glorious for you as it has been for Tendulkar!!

The good part is that its never too late(or never too early)to start.Go to your nearest financial advisor or  you might see a similar message when Virat Kohli retires a few decades hence...!

India and China.

Let me give you an example.The Congo river drains an area of 3.7 milliom kilometres known variously as the Congo basin which consists of Tropical Rain Forests spread over 178 million hectares.It is so large that it creates its own climate.The evaporation from trees is so vast that it forms clouds that drop their load over the wide area at an annual average of 650cm per year!

A billion consumers in Indian and a little more in China can create a vast business cycle of maufacturing to consumption of goods and services that is self sustaining.

There is no need for esoteric,complex investments.Just look around you and you will find companies that make profits from you,products that you use in everyday life.