Investment nuggets

Came across some John Templeton quotes. Golden nuggets from the investment guru...

The time of maximum pessimism is the best time to buy and the time of maximum optimism is the best time to sell.

I never made money for clients by buying anything expensive.

The only investor who should not diversify is the one who is right 100 per cent of the time.

For those properly prepared in advance, a bear market in stocks is not a calamity but an opportunity.

If you buy the same securities as other people, you will have the same results as other people... To buy when others are despondently selling and to sell when others are greedily buying requires the greatest fortitude and pays the greatest reward.

Bear markets have always been temporary. And so have bull markets...

...Too many investors can spoil any share selection method or any market timing formula.

History shows that time, not timing, is the key to investment success. Therefore, the best time to buy stocks is when you have money.

Article @ click here

Bernard Weber - The smart ass

I admire Bernard Weber. For he is perhaps the only person in history who has fooled millions across countries at the same time, and has made good money out of it. Smart and courageous entrepreneur. He even succeeded in fooling many country heads to go live on TV and urge their citizens to vote on Weber's website! His new7wonders.com played into the emotions of people and helped him fetch millions of dollars. Not many folks who visited his website and SMSed their choice knew that they are contibuting more to the coffers of this millionare. At that point of time all that mattered to them was emotion. Rationality took the back seat. I'm surprised why the fourth estate waited long to expose Weber!!

Btw, do you know his website's operation costs were minimum and efficient. Most of the softwares used by the website came from GNU/GPL open source. Here's a testimoney to that. I got this from new7wonders.com: "TYPO3 is a free open source Content Management Framework created by Kasper Skaarhoj and licensed under GNU/GPL."

Anyways, now that Berner chose the new seven wonders and made money, I'm eagerly awaiting his next new move. Am also thinking of starting a website called new7bangalore-wonders.com ;-)

Financial Intelligence

Take a look at the violet colored two storey building below...


Now take a look at the small-hut-like-building below...


That is where the owner stays. He is a taxi driver. The area where he has built this house is called Ejipura, Bangalore. During old days, people used to consider Ejipura as a slum area. Today, most of the Ejipura tenants are Software Engineers who owe NO apartment like this. Who is financially more intelligent? - Taxi Driver OR Software Engineers?

This reminds me about a conversation my friend had with an Auto driver.

The driver was in a very good mood to talk… So he starts…

Auto Driver: So sir... How are you? In which company do you work?
My friend (suspiciously): Mmmm… MBI
Auto Driver: Good good! You should be earning quite well!?
My friend (suspiciously and showing no interest in the conversation): Yes yes…
Auto Driver: How much?
My friend (with suspicion and surprise, but with a hope to cut the conversation): Rs 12,000/- per month.

He had purposefully reduced his salary amount. Why reveal it to an Auto-Rickshaw driver?

Auto Driver: That is quite less. Are you a fresher? My son gets more. He joined this year. He earns more than you.
My friend (startled but with admiration and with an interest to continue the conversation): That’s good. You should be proud of your son and yourself. You have made him a software engineer.
Auto Driver: Yes sir. I’ll be happier when my second son gets into an MNC. He is doing his final year BE.
My friend (with admiration): Your second son is doing his engineering! That’s cool. So once he is done you can take a break from this rickshaw job
Auto driver: No sir. I have a daughter. I want to make her a doctor. And also I need to build a house for her. I have already built two houses for my sons.
My friend: ….. Has no words. He kept listening to whatever the driver said with occasional one or two questions and clarifications

Who has more financial intelligence? - Auto Driver OR Software Engineers?