Droplet Wealth

Read this interesting  article last week and thought of sharing it with all our readers. A client shared this story with us: It started at the grocery store. Every time we were shopping, my older son, then eight years old, would bug me to buy him a certain cereal he’d seen advertised on morning TV. The same thing would happen when we passed a toy store. He’d beg me for highly advertised action figures.  I realized it was time to teach him about how businesses work and decided that the stock market might be a fun way to do that.  We started small. I told him he could buy the stock of any company he wanted—so long as he paid with his allowance or with money received as a gift. I’d match his funds.   Of course, he was drawn to companies he could relate to: computer stocks, Manchester United, and the like. When we ate in a restaurant he liked, he started asking if it had stock, and if so, how we could invest.  Our stock market game not only t...

Click here to read the article in Tamil   Start early.  Be it be health or wealth start early. It does not matter whether you run a full marathon or talk a small walk around the park. Starting early only matters. Likewise, start saving right away, Even Rs 500 is Okay. Avoid excessive calories & fat for a peaceful healthy life. Likewise, avoid debt. Understand the importance of compounding in life. Have a long-term mind set. Be consistent in whatever you do. Let it be gyming, Saving or investing. Only then you will achieve your desired results. Everything in life would take time. You have to believe in the process. Six packs do not appear in a month and neither does wealth. Continue the process and it would happen for sure. Have a plan in place and measure the progress at regular intervals. So you will understand where you are and what needs to be done to reach the destination on time. Understand the significance of diversification. You don't eat the same ...

    Click here to read the article in Tamil                                     Karma is a boomerang, we are sure we have to repay for the lie that the title of this blog is. But don't they also say - "Dharamam Thalai kaakkam" Lets hope when Karma boomerangs, our Duty will save our heads.  Now that we have told the title of the blog is a lie, Let's now try and make it true, Why let Karma boomerang in the first place?                                    If you have followed us, you would realize that we are obsessed with just 2 things - "Savings" & "Compounding". We will make it rhetoric until we are sure each of our readers has understood it clearly. That's "Dharma" performed. Alright then!  1. Savings - A quick check of  candidates a ged 4 0+ tell us that most of...

                Investing is simple but not easy. Meaning, anyone can step into a broking firm open a demat account and start investing. However, in reality not all those who have a demat account or someone professionally qualified have succeed dramatically in the equities market. If knowledge is the only required criteria then all the chartered accountants & finance professionals would have been millionaires and minting money on their investments.                When asked about investments & knowledge, Warren Buffet candidly replied – “If book knowledge made great investors, then the librarians would be all rich”. Ideally, it is the behavior, which differentiates successful investor from the rest of the world.                               ...

                                          Droplet is 365 days old, Yes with this New Year we will be “ONE” year old. Happy Birthday, Droplet! We would like to thank all our clients & readers for supporting our small start-up. The idea of starting up a financial advisory service was never there until we realized there is serious lack of financial literacy among people and we wanted to take this opportunity and make people understand the significance of Starting Early, Financial Planning, Asset Allocation and more importantly  differentiate insurance & investments . That’s how Droplet was born.                       When we started, we never anticipated we will get such a significant response from people. But, We are, least to say, humbled and bow down to your support and interest that each of you has sh...

Disclaimer - This blog has nothing to do with the below book. But it has got everything to do with "Rich Dad & Poor Dad". We all want to be rich but hardly 1% actually make it there. At Droplet our endeavor is to make every person investing with us to be Rich. Because, believe us, becoming rich is not that tough, it's very simple and boring. But most of us blame it on our Parents for not giving us the kind of launchpad (Like inheritance, Degree from Fancy college, things, etc.,) to become rich. Include those of you who say "Avanukku enna, avanga Appa sambachu-vechu irukkaaru..."  Before we proceed to say anything we want to bring to you 2 real stories from our beloved place ie., the Stock Market.  Of course one of the companies is Rich Dad's and Another is Poor Dad's. Below is the Sales that these companies have recorded in the last 10 Years.    As you can see the 1st company had started with huge sales figures and gradually...

Each time, We approach someone to invest in Equities (read Mutual Funds), they are inherently worried about the loss. Questions like - What if I don't even get back the Money I have invested? Will be I become Super-Duper Rich.? One extreme to another! Alas, I wish, sometimes, we used less of our thinking ability. We wondered how should we answer these question. That's when the Indian-ess in us came to our rescue. If we notice, in our country, most of the times, we do something because our Neighbour does it, Or our friend does or our Cousin does it or somebody did it.. So we said let us bring to our reader stories of fellow Investors who made some serious wealth (Read hundreds of Crores) by investing. Mr. Anil Kumar Goel - Before anything - Oh yeah! He is Chennaite :) No Idea about Stock Markets - Anil was born and bought up in Punjab. He came to Chennai on the insistence of his Grand Father to help his Steel Business. Having come to support his Grand Fat...

                                          In the earlier blog , we saw that share price of a company is the function of the Profits that the company makes and the no of equity shares it has. Lower Equity shares and higher profits would mean a very high share price (MRF, EIcher Motors) and vice versa.  As simple as it can get.  Now we will see why the share price goes up and down putting its holders on a roller coaster, a ride that not many are adept handling.   As said earlier, If a company is earning 10 per share and an investor is ready to pay 10 times its earnings ( i.e.,) then the share price will work out to be 100. But World and life is not so simple and as are markets. Life, world and markets are all built on hopes. Hope that tomorrow will be better than today, hope that one's view of things will be win over other's view of same thing. Lets look at ho...

                       Nothing gives you more joy than doing you what you love to do. The joy increases many-fold when people follow up on you to do the most lovable thing you do! You feel special. Last week, We missed to publish our blog. That's when we realized that "Silence is louder than noise". This time our silence was returned by noise of our beloved readers asking - " Where is this week's blog? Did you forget to it share with me? " When the noise is made by readers that counts upwards of 10,000, the Love is "heart-deafening", we should tell you. Before I move on, thanks to everyone of the 10,000 readers for following us and supporting our "Droplet" like small venture.  More than this, there are couple of friends who ping us to check whether the blog is up for the week and few go an extra mile by providing unbiased view of the blog, You guys are fantastic!  Whats up for this week then -  Sticking...

The Price of 1 share of MRF is Rs 76,650 The Price of 1 Share of Eicher Motors is Rs 27,000 The Price of 1 share of  Maruti Suzuki is Rs 9,300 The Price of  1 share of TVS Srichakra is Rs 3031 The Price of 1 Share of Colgate is Rs 1100  The Price of 1 share of State Bank of India is Rs 260  What does all this mean?  As indicated by Share Price alone  Does it mean that MRF is costly and Maruti is cheaper?  Does this mean that State Bank of India is smaller than Maruti?                          The share price is face of the share market. Share price is the first thing that anybody who comes to stock markets sees first. This person may not know anything about the Stock markets, He -may not know Market Capitalization, may not know Gross Profit Margins, may not know bottom line, may not know top line but he will know the Price of most of these shares.  ...