Sunday, February 1, 2015

Some economic lessons from the other side

I am no MBA student or otherwise , but i am an economics student all my life, its from the day I knew Manmohan singh much into economics that i can totally relate to the 'ananya" of two states how should you represent each and every curve in a mathematical model. who does not know about the demand supply curve. when demand increases its have a direct effect on supply. well well I studied all those long before, its time to apply all those laws.
Its about my neighbour Mrs dizzy mummy as I her grand kids call her and Joff uncle and i like to call him. the only thing that is less in their life is age and the waist line every other ting is said in the multiples of 1000 and in crores, when i started knowing her in my early teens its was in 100 and lakhs , now due to lot of market variations its now in crores. I dont know its simple or complicated that you have to decide. she has two daughters with an age gap of 10 years, both married and never get to see them together. when dizzy mom is roaming around wit the elder daughter the math of her age goes like this
18+18+18 as the age of the grand kid is 18 as of now. age you do the addition. and when she is with the younger girl the age is calculated as 6+18+18. as her daughter is 6 yeas of age. now tell simple na .

she is marvelled of her astonishment to our curiosity. don't make your face now as you don't know the basis of math, math is the most abstract of sciences. why you all a zero a zero or why you believe that one plus one is two. if you believe and teach and punish your kids if they get it wrong then think again. y are you following this , because its abstract its said so , it is so , ans will be so, and you follow as such. then why complain about the theory of dizzy mom. you can start afresh like her math too, dynamic math subjected to present variables.

oh god what i wanted to say is the study of market investment with her. every body says that wealth creation is so totally different from money creation.  long term investment and short term goals. now got it right?
 she believe in long term and short term and mid cap, and high on spot trading. she invite us for the Easter lunch expecting the return from onam sadya. she did try her luck a few years then she thought its not a viable investment, as for Easter she has to serve fish and mutton and chicken, and in return she gets aviyal and sambar, payasam is no perk as she is diabetic. did some spot exchange with plates on which ipo is there. like she plates the fish fry , fish could be big or small. if the neighbours are seated against the big fish she has to trade the plate with the blood relative on board. see long term investment, even though she know that i would be flushed out the next morning.

the most valuable commodity that she trades is the jack fruit. why because she knows the neighbour has two mango trees , its a mid term investment and a bit risky one. but she does it as sometimes there is huge returns. this year too she invested one small jack fruit. but not only her investment sink she has to trade her mangoes or should say one mango. and some free advise to pluck our mangoes before time as joff uncle would be going to meet his daughter this Feb.

markets are subject to risk and that too unexpected ones, as dizzy mom pour water to boil her coconut water to boil and forgot about it. the neighbours say fumes coming from her kitchen and informed her about it. she ran to put of f the fire and returned with 200 grms of jack fruit fry. for us its an unexpected return, for her a lesson for long term investment on valuable relations.

moral of the story, do invest in shares that have a regular return, for wealth creation go for long term investments, don't do spot trading its makes a dabba on valuable shares. daag hamesha acha nahim hota.

invest , do invest in long term as its return is high on everything in life.

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