Posts

Is Gold “really” Glittering ?

Image
Gold is in a phenomenal bull run. Since the beginning of this year, its up 10% and in last year or so it has gone up by 34%, Since the Covid days its up a full 106 % and since 2014, its up almost 200% (~195%). Given these kinds of returns, it’s natural that we get excited and want to jump ship from one asset class to other or over allocate to an asset class. To make matters worse, the Equity returns over the last 18 months have tumbled, making Gold returns look all the more mightier.  So, its not really a bad time to “Stress Test” Gold and see if it’s really Glittering?  We are firm believers that any investment that we make should be looked at from a long-term view meaning starting with a minimum 5 years and then we move on to higher periods. As soon as the investment is ear marked for a long term period, its natural that the investment is made in to equity as we are again firm believers that over longer periods of time , equities outperform other asset classes.  Th...
Post a Comment
Read more

Milestones and More...

Image
"The journey of a thousand miles begins with a single step." — Lao Tzu     And so we started in 2018. What to us back then was passion turning into a hobby. Passion about stock markets, Equity Investments, creating wealth. The more we spoke about it, the more people got attracted to us seeking opinions & Investment advices more so with the aim of making quick money. We realised the folly that common man commits and wanted to put them on the right path by giving them right guidance through proper financial planning. With this motto, we reached our Milestone#1 - Founding Droplet Wealth.                                                        As the days passed, a lot our acquitances became our clients and they realised the beauty of Equity investments, the importance of financial plan and significance of having a ...
1 comment
Read more

The Gold Standard

Image
 2023-2024 is very interesting period and for a very unusual reason. The reason being a lot of flagship funds of some very famous Asset Management companies completed or crossed 20 Years. Considering the fact that we always tell - Equities should only be considered as a Long Term investment tool, 20+ years truly signifies "Long Term". Before we move on, here is an sample marketing material that is circulated widely to show the growth of the capital invested - One thing that caught our eyes was - How the material shows today's value in Crores. Largely it is due to aspriations of today's generation wanting to be crorepathis and rightly so.  But for a common man, the question is always how much investment has to be made to reach that "Crore" Mark. The materials we presented above talks about 1 lac becoming 2 Crore in 26 years. Given how our mind works, we quickly jump to a conclusion that we just need to invest 1 lac and we will get 2 Crores years later...
Post a Comment
Read more

Why Do SIPs work all the Time

Image
                         If you know, its that simple and yet do not do it, It feels bad. A lot of this is so true for life and all the more in financial life where people think that one has to jump hoops after hoops, do some very complex thing like Options Trading, invest in Crypto, NFT or have "contacts" that can make you rich over night while each of us know that consistently saving is more than enough to make you wealthy beyond your imaginations! One such simple tool that helps you save consitently is your humble SIP. Yet people doubt its abiltity to create wealth and complicate things with "What will happen If" questions.                           We decided to write about How SIP creates wealth even if the asset price does not go "much" above the Price you did your 1st investment through your favourite asset- "Gold" ...
Post a Comment
Read more

Using Automation to create more Wealth

Image
 Couple of weeks back, Microsoft backed Open AI came with its latest version of the AI Tool - ChatGPT-4o. Everyone's already excited about how this AI tool is going to make their work and life more easy and efficient. Given the context, It got us thinking  - Are there automation tools that help us create more wealth ? That will make our investing more efficient ? That will make our life more easy. Can AI /Automation help us finally discover the holy grail that will make us super-duper rich?    Like all comman men, we saw if it can help us find the best mutual fund? or find that exciting Option Strategy ? or give a formula that can help me find next Infosys, Reliance or HDFC Bank? or help me do Algoritham trading that has made crores of rupees for Institutional investors? or heck can it atleast help me buy a "Winnable lottery ticket?  We realized that they may or may not give us the answers we seek but for assure none of these guarantee success....
Post a Comment
Read more

Investing, Social Media & Scams!

Image
     Anecdote - We recently we met a client and pitched the 1 Crore plan. He was quite happy and agreed to start the investment journey with us. A few days later he sent me a insta-story about how somebody can make 15 crores and asked me – Why I pitched “Only 1 Crore” when we can make 15 crores! We have always been wary about YouTube shorts and Insta stories which give a false notion it is very easy to make money in stock markets and become super duper rich. Our suspicion is that the only motive of these social media posts is to entice people and dupe them of their hard-earned money. Confirming our suspicion, we recently came across scam which used should social media to reach a lot of well-educated, literate people and cheated them.   Here's what happened… Madhav had already invested Rs 30 lakh through an app called KKR MF, which he had been led to believe was managed by the global financial services group. Mind you, Madhav is not a simpleton, but an intelligent...
Post a Comment
Read more

Why Investing is Easy - Chapter#3

Image
 Continuing with series of understanding Why Investing is Easy , We thought to bring our own example to the table. This is true story of a Share that we bought when we were just newbies.  We bought a stock at INR 240 and It went to INR 2700 .  Thats a neat 11X gain. Meaning 1 lac invested is worth 11 lacs now and 10 lacs Invested is worth just a above one crore at 1.1 crore.. Fanstastic! One can see Investing is so "easy" , you just have to buy a stock and wait for it to go up. Oh Wait! We just realised we did not tell you how long we waited to make 10 times money we invested.  We bought a stock at INR 240 and It went to INR 2700 in 8 years Now it makes more sense, we just need to buy a stock and wait for 8 years to make 10X. T hat works to a return of ~31% yearly compounded. So we said wow what if we can compound at this rate for another 2 years? We have anyways waited for 8 years.. 2 more years wont hurt! Magic..  In Just 2 more years, we will have 2 Cror...
Post a Comment
Read more