Page 7 - Al-Rashed Newsletter March 19
P. 7

POTPOURRI
                                              OUT OF THE BOX



                                              Lets take a short breather from the shipping and logistics and focus on personal
                                              finances.

                                              Some people manage their money like they were born with calculators in their
                                              hands. Others…not so much. Maybe they fall prey to their own instincts to spend
                                              more than they should. Maybe math just isn’t their strong suit or they find it
                                              unbearably tedious to keep track of pennies and dimes.The most recent survey
                                              indicated that a walloping 70 percent of us believe we’re on shaky financial ground.
                                              Even more — 75 percent — are of the firm belief that we’d be a whole lot happier if
                                              we just had more money.So what can you do to get a grip on your finances and
                                              make your money grow? Learn. Educate yourself. That’s how Elon Musk and
                                              Warren Buffett started out.
                                              “Do you know Bill Gates and Mukesh Ambani are the richest in the world because
                                              they own equities”

                                              Had you been holding on to a few stocks, where companies had competitive edge
                                              and earnings growth on their side, you would have ended up gaining up to Rs 3
                                              crore on just Rs 10,000 investment.
                                              Infosys is one such stock. An investment of Rs 10,000 in this counter in June 1993
                                              would have delivered you 2,973 times return! That Rs 10,000 investment would now
                                              have been worth Rs 2.97 crore at a compounded annual growth rate (CAGR) of 39
                                              per cent.
                                              The list doesn’t end here, below is the  chart of the companies which have turned
                                              multi baggers in last 25 yrs or so.

                                              So what are you thinking , did you miss the bull run , not really!!
                                              India is positioned perfectly to become a 10 Trillion $ economy in the next 10 years
                                              outperforming most of its peers.






    THERE IS NO SCIENCE

    FOR ACCURATELY
    PREDICTING PROFIT

    GROWTH WHICH IS

    COMPLEX AND                               Start early, don’t try and time the market and handle with care, since Seeking
    MULTIVARIATE.                             multifold increase in profits is easier said than done. This is because there is no
                                              science for accurately predicting profit growth which is complex and multivariate. As
                                              a result, stock markets are unable to appropriately value long-term profitable growth.
                                              Looking back 10 years, in many stocks, markets could have afforded to pay
                                              significantly higher prices and multiples than they actually did.










                                                                                                  Goldy Chadha
                                                                                           Key Account Manager
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