Buffet's Gyan as Droplet's Version

 I am so swamped in Dhoni-verse that my mind was itching to write about "Him" when I sit to write. If not nothing, I will atleast write his name, which I just did. IPL started when I was in my late teens, I was there in Chepauk when Sachin walked-in to bat for Mumbai Indians. The Stadium was the Temple, Sachin, The God and we meare mortals. I thought I would never see something like that again and will live in the shadow of those memories forever. There, right there, right in front my eyes, as I grew up, the shadows lenghthened, the sun set, a new dawn was born, the Sun rose once more and even without an idea, here I stand in the shade of another Ultra Legend! Oh my...! Ooh so much! An absolute bliss. Oh Dhoni, What are you?!?

Staying with the Legends, What If I told that had you invested Rs 4,140 with this Legend in 1993, you would have made... Ok hold on, Why Rs 4,140? Because that was the price of the 10 gms Gold in 1993. So had you invested Rs 4,140 with this Legend in 1993, that would have turned into 2,21,000 today.. How would you feel? Note that even at peak price today, 10 gms of Gold would fetch you INR 62,000. Of course you'd feel very rich! That's 3 times more than what Gold is worth today. So who is this Legend? err.. well Legends.. They are Charlie Munger & Warren Buffet. 

Unlike Dhoni who shares his gyan at the end of every match, these investing Legends share their gyan once a year during The Buffett and Munger show. Like every year, this year too, Buffet shared a unsuspecting-unexpected "Financial Gyan" when he said - "The world-changing doesn't give you opportunities. What gives you opportunities is other people doing dumb things". 

Of all things above said, what stuck me most is "People doing dumb things" and I suddenly felt how deeply profound and wisdomful it is especially in one's financial life. I thought lets put down a list of dumb things we thought people do - 

1. Not buying a term insurance as their 1st form of Savings. 
2. Not buying a independent health cover and depending only on company provided Health Insurance. 
3. Not having a Emergency fund to cover unexpected expenses.
4. Not Planning to save and believing that "Life is all about today and enjoying this day is far important than planning for a rainy tomorrow"
5. Buying Life Insurance policies thinking that It will serve as your retirement egg. 
6. Signing up for a home loan still young in one's career, thereby loosing the compounding on savings and tying up one's liquidity to an illiquid asset. 
7. Betting/Speculating/ Trading in things one does not understand in expectations of very high returns and loosing the capital in the process.  
8. People who know each of the above is important but Procrastinate. 
9. Not being objective but temperamental in financial decisions. 

One can keep on adding but the above is a fair enough list of dumb things people do and blame the changing world for their financial struggles. As Warren says  - "Its not the changing world...but the dumb things other people do"  

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