AKS

[AKS @arunsk]

A visionary state investment in private business. #Tamilnadu

[AKS @arunsk]

https://t.co/wa9kX7yf9d

[AKS @arunsk]

A book review - Mindset by Dr. Carol S Dweck

https://t.co/qWddg6iK9p

[AKS @arunsk]

Trust the bond : Nitty gritty of lending wisely

https://t.co/eYHjvU6V4w

[AKS @arunsk]

What a journey Sir !

Truly remarkable legend who will be missed.

[AKS @arunsk]

An inspiration for generations !

[AKS @arunsk]

பறந்து சென்ற வண்ணத்துப்பூச்சியை நினைத்து வருந்துவதை விட,
நல்ல பூந்தோட்டத்தை கட்டமைத்தால் - வண்ணத்துப்பூச்சியின் வருகை நிச்சயம்.

Butterfly an allegory to anything we like to accomplish in life !

[AKS @arunsk]

ஆலமும், மூங்கிலும் தமக்கேற்ப
வலிமையுடனும், தளர்வுடனும் வாழும்.

[AKS @arunsk]

State of States...

[AKS @arunsk]

For an annual return of 8%, you would need to contribute approximately £1,447.56 per month to accumulate one million pounds in 15 years

[AKS @arunsk]

குறள் 754:
அறன்ஈனும் இன்பமும் ஈனும் திறனறிந்து
தீதின்றி வந்த பொருள்.

Explanation:
Wealth acquired with knowledge of proper means will yield virtue and happiness.

2000 years ago, Thiruvalluvar mentioned what @naval mentions as "positive-sum games".

[AKS @arunsk]

The 10-year Treasury yield rising 💹.. Money not cheap anymore and our generation never experienced this tectonic shift.

[AKS @arunsk]

Are we sleeping with the fishes ?

The hidden cost of your supermarket salmon https://t.co/wp5NyZovar via @ft

[AKS @arunsk]

Larry and Sergey holds the control and can direct or jettison to their whims and fancies.

[AKS @arunsk]

Marx might disagree but class structure in equities does provide the reign to the owners / founders to mission their vision.

For instance, Google share structure is below and irrespective of how onw could gang up with Class A shares,

[Muthukrishnan Dhandapani @dmuthuk]

40,000 times in 100 years is 11.3%

A bungalow in Nepean Sea Road, South Mumbai was bought for around Rs.1 lakh in 1917. It is now going to be sold for Rs.400 crores. The value of the bungalow has multiplied by whopping forty thousand times in 100 years.

Real estate is always discussed in terms of how many times it has multiplied. Rarely anyone in that industry calculates XIRR or annualised returns. 40,000 times in 100 years when expressed in terms of XIRR is 11.3%. Not a bad return at all. But nowhere as glamorous as saying 40,000 times.

Many tell me something like that the property they bought 25 years ago has multiplied by 10 times. Sounds fantastic. But the annualised return works out to 9.6%.

When I say Birla Sun life Tax Relief’96 has provided around 26% returns in last 20 years, it doesn’t sound much sexy. When I rephrase that the fund has multiplied wealth by 100 times in 20 years, it suddenly looks very attractive.

Generally, finance people always talk in terms of annualised returns. If I say, you may expect around 15% annualised returns from equity over next 20 years, what it means is that the money getting multiplied by 16 times.  

Do one thing. Use the simple function in excel or a financial calculator to calculate returns in terms of XIRR. An exotic 10 times in 25 years would be converted into a modest 9.6% XIRR. Comparison between asset classes would become meaningless if not measured in the same way.

Learn to measure everything in terms of annualised returns. This would not only impart better financial literacy, it would also reset your expectations to more realistic levels. If a prime property in Mumbai can ‘only’ deliver 11.3% over 100 years, you would learn to be contended with 9% annualised returns from your real estate investments.

The 2004-07 bull market in stocks, the 2004-09 boom in real estate are more of exceptions than the rule. As I’ve mentioned before, in the long run, you may set your expectations as follows:

Fixed Deposits: Inflation + 1%

Gold: Inflation + 1.5%

Real Estate: Inflation + 3%

Equity: Inflation + 7%

Calculate how much annual returns your real estate investments has delivered over last 2 decades.

The number may surprise you.

( I wrote this piece in 2016)

[AKS @arunsk]

@jasonzweigwsj RIP

[AKS @arunsk]

Honey, I shrunk the shopping bag ?

Shrinkflation 🔥