Over the years ,the world of investing has become a notorious place to live in. The so called safe haven for investors and common human beings seeking safety like fixed deposits and bonds are rather unsafe now. Imagine negative interest rates in banks in developed countries ,where you need to pay banks for your deposits!! That may be still some years away for investors in India though..However the fluctuating deposit interests on money deposits have indeed become a matter of concern.
The fixed deposit may be the most popular with the majority of Indians but HOW OFTEN THAN NOT DO WE IGNORE THE RAGING INFLATION AND THE DAMAGE IT CAUSES TO OUR HARD EARNED MONEY.
Let me give you an example. It may appear trivial but it is self explanatory. How much did an average Indian pay for a kilogram of potato 8 years back? Eight rupees for a kilogram in the months of July or August ,couple of years back. Right? And mere four rupees in the months of December, January or even February. So if you had eight rupees in your pocket that year you could have actually bought 1 kilo or 2 kilos of potato with that money. Theoretically if you had invested your money in the bank with the amount of interest the banks offered at that point of time would have fetched you 16 rupees today doubling over 8 years approximately.What is the cost of potato today? It is usually 12 rupees a kilogram in the winter months and 26 rupees in the monsoon. What does it mean? It means that you can buy only 16/12= 1.33 kilos of potato in the cheaper months and 16/25=.64 kilo during the monsoon. Can you see the problem? Your money has grown but so has the price of potato.
IT MEANS THE INFLATION HAS ERASED THE PURCHASING POWER OF YOUR MONEY. You cannot afford the luxury of the past!!!! In spite of putting your hard earned money in the back of a safety net has not helped you. You are nervous now. You are apprehensive now. What about your child's education? What about your dream house ? What about your vacations to exotic places?
WHAT ABOUT LIVING THE AMERICAN DREAM? YOUR LIFETIME DREAM TO VISIT SINGAPORE AND HONGKONG? Let us face the realities that we live in .
Let us reorganize ourselves and think. Think about those millions of small businessman around the world. Is there any certainty that their businesses are going to flourish? The answer is NO!!! They can collapse anytime without bothering the world. But they survive in spite of uncertainties. They must find ways to survive.
Have of heard of Coco Cola? Yes you have. The shop close to your home sells Coco Cola to people. People around the world consume Coco Cola in all festivals and parties possible round the world.
You KNOW PEOPLE WILL CONTINUE TO DRINK COCO COLA AND WON'T STOP EVEN IF THERE ARE ALLEGATIONS COMING AGAINST THEM OF HAVING PESTICIDE IN THEM .
There are certain businesses which have earned loyalty from their customers over years. Every household buy their products every month having put complete faith in them. The loyalty is such that even if the companies go on increasing the price of their products , the customers will still be buying them .
In India we have some such great companies.Let us see whether we buy them or not.
1.What toothpaste do Indians use ?
COLGATE
2. What biscuits do Indians consume?
Britannia, Marico, Bisk Farm
3.What shoes do Indians use?
BATA, RELAXO
4. What paint do Indians use to paint their houses?
ASIAN PAINTS
5. WHAT BIKE DO INDIANS PREFER?
HERO MOTO CORP, BAJAJ AUTO
6. WHAT CARS DO INDIANS RIDE ON?
TATA MOTORS, MARUTI, MAHINDRA
7. WHAT BULBS DO INDIANS USE?
EVERREADY, BAJAJ ELECTRICALS
8. WHAT REFRIGERATORS DO INDIANS USE?
GODREJ
9. WHAT CIGARETTES DO INDIANS SMOKE?
ITC
10. WHAT SHAMPOO...
HUL, GILLETTE, PROCTOR& GAMBLE
11.WHAT AC'S AND AIR COOLERS DO INDIANS USE?
SYMPHONY, BLUE STAR
12.WHAT MOBILE COMPANIES DO INDIANS LIKE?
BHARTI, VODAFONE,IDEA
There may be may such common questions which can answer our daily needs and usages and the companies that we use for our needs. As years pass by so does the power of public consumption go up.
India is a country with a population of ONE HUNDRED AND TEN CRORES AND EVER INCREASING.
The demand for consumption is bound to go up.These are the companies that shall be catering to our everyday needs.Now tell me, are these not great businesses in which we can put our trust in? Can we not own these businesses for ourselves? Yes we can!!! And we must!!! These businesses can beat inflation anytime!!! Anywhere!!!
The fixed deposit may be the most popular with the majority of Indians but HOW OFTEN THAN NOT DO WE IGNORE THE RAGING INFLATION AND THE DAMAGE IT CAUSES TO OUR HARD EARNED MONEY.
Let me give you an example. It may appear trivial but it is self explanatory. How much did an average Indian pay for a kilogram of potato 8 years back? Eight rupees for a kilogram in the months of July or August ,couple of years back. Right? And mere four rupees in the months of December, January or even February. So if you had eight rupees in your pocket that year you could have actually bought 1 kilo or 2 kilos of potato with that money. Theoretically if you had invested your money in the bank with the amount of interest the banks offered at that point of time would have fetched you 16 rupees today doubling over 8 years approximately.What is the cost of potato today? It is usually 12 rupees a kilogram in the winter months and 26 rupees in the monsoon. What does it mean? It means that you can buy only 16/12= 1.33 kilos of potato in the cheaper months and 16/25=.64 kilo during the monsoon. Can you see the problem? Your money has grown but so has the price of potato.
IT MEANS THE INFLATION HAS ERASED THE PURCHASING POWER OF YOUR MONEY. You cannot afford the luxury of the past!!!! In spite of putting your hard earned money in the back of a safety net has not helped you. You are nervous now. You are apprehensive now. What about your child's education? What about your dream house ? What about your vacations to exotic places?
WHAT ABOUT LIVING THE AMERICAN DREAM? YOUR LIFETIME DREAM TO VISIT SINGAPORE AND HONGKONG? Let us face the realities that we live in .
Let us reorganize ourselves and think. Think about those millions of small businessman around the world. Is there any certainty that their businesses are going to flourish? The answer is NO!!! They can collapse anytime without bothering the world. But they survive in spite of uncertainties. They must find ways to survive.
Have of heard of Coco Cola? Yes you have. The shop close to your home sells Coco Cola to people. People around the world consume Coco Cola in all festivals and parties possible round the world.
You KNOW PEOPLE WILL CONTINUE TO DRINK COCO COLA AND WON'T STOP EVEN IF THERE ARE ALLEGATIONS COMING AGAINST THEM OF HAVING PESTICIDE IN THEM .
There are certain businesses which have earned loyalty from their customers over years. Every household buy their products every month having put complete faith in them. The loyalty is such that even if the companies go on increasing the price of their products , the customers will still be buying them .
In India we have some such great companies.Let us see whether we buy them or not.
1.What toothpaste do Indians use ?
COLGATE
2. What biscuits do Indians consume?
Britannia, Marico, Bisk Farm
3.What shoes do Indians use?
BATA, RELAXO
4. What paint do Indians use to paint their houses?
ASIAN PAINTS
5. WHAT BIKE DO INDIANS PREFER?
HERO MOTO CORP, BAJAJ AUTO
6. WHAT CARS DO INDIANS RIDE ON?
TATA MOTORS, MARUTI, MAHINDRA
7. WHAT BULBS DO INDIANS USE?
EVERREADY, BAJAJ ELECTRICALS
8. WHAT REFRIGERATORS DO INDIANS USE?
GODREJ
9. WHAT CIGARETTES DO INDIANS SMOKE?
ITC
10. WHAT SHAMPOO...
HUL, GILLETTE, PROCTOR& GAMBLE
11.WHAT AC'S AND AIR COOLERS DO INDIANS USE?
SYMPHONY, BLUE STAR
12.WHAT MOBILE COMPANIES DO INDIANS LIKE?
BHARTI, VODAFONE,IDEA
There may be may such common questions which can answer our daily needs and usages and the companies that we use for our needs. As years pass by so does the power of public consumption go up.
India is a country with a population of ONE HUNDRED AND TEN CRORES AND EVER INCREASING.
The demand for consumption is bound to go up.These are the companies that shall be catering to our everyday needs.Now tell me, are these not great businesses in which we can put our trust in? Can we not own these businesses for ourselves? Yes we can!!! And we must!!! These businesses can beat inflation anytime!!! Anywhere!!!
Oh yes! These are the brands that most people recognize. People may claim they are wise but the reality is they are not enough wise. They know the brands almost all of them but they don't trust them. I hope after reading this atleast some will start building trust on these companies.
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Thank you buddy!! these are encouraging words!!!
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