Which stocks are you buying?
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jat1977
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Bhai maine to TCS, NIIT, Kale Consultant, and Polaris le rakhe hain. I also had i-flec and wipro in my portfolio but now replaced them with TCS.
Anuj Bhai,
I don't know what you mean by buying stocks just like that. I buy mostly technology companies (some financials) which are number one or two in market share for thier technologies. Also, I buy only those companies which I think are solid and have good future prospects. I don't sell until I believe that the company is loosing grounds.
It is very hard to make money in stocks. But I didn't loose my shirt. I am being honest. How many people can say that having been through the storm of 1999-2000.
I don't know what you call small amounts. Yes I probably invest in small amounts by your measure. I only have 100-500 stocks of each of the companies I mentined and a few more companies.
I have been doing it since 95 so my cost basis are really low in most cases. That was probably the only reason I didn't loose my shirt.
BTW, I don't invest for fun. I don't play with money. Money is expensive. No, never bought a lottery or gambled in Las Vegas.
Thanks.
-ajmer
I don't know what you mean by buying stocks just like that. I buy mostly technology companies (some financials) which are number one or two in market share for thier technologies. Also, I buy only those companies which I think are solid and have good future prospects. I don't sell until I believe that the company is loosing grounds.
It is very hard to make money in stocks. But I didn't loose my shirt. I am being honest. How many people can say that having been through the storm of 1999-2000.
I don't know what you call small amounts. Yes I probably invest in small amounts by your measure. I only have 100-500 stocks of each of the companies I mentined and a few more companies.
I have been doing it since 95 so my cost basis are really low in most cases. That was probably the only reason I didn't loose my shirt.
BTW, I don't invest for fun. I don't play with money. Money is expensive. No, never bought a lottery or gambled in Las Vegas.
Thanks.
-ajmer
Actually, you are right. These days money has become precious. I would have thought that life is precisous, family is precisous, friends are precious. But these days, more often than not, you can have such precious things only if you have money. So, that does prove that money is precious.
Thanks for the advice.
-ajmer
Thanks for the advice.
-ajmer
Choudhary (Sep 02, 2004 11:35 a.m.):
Ajmer bhai,
Money is 'precious', not expensive
I think Chodhary meant it is linguistically incorrect, you don't buy money with money to render it expensive.
About investing, what i meant what that there exist these so many investment agencies, hedge funds, who charge some premium and claims to give you better return then market. but mostly their client are big investors.
But the point is, you can see how you did, by say comparing if you have invested all your money in some common technology fund or say bought an FD in india. (FX rate are highly volatile and hence last option is not a good idea.)
But it is well know, that such small time, stray investor loose to the market. One of my professor invested some money on his own, and he lost, vowed to never do that again. He is supposed to know finance.
But you could have a good hand on technology markets, in which case it's good idea.
About investing, what i meant what that there exist these so many investment agencies, hedge funds, who charge some premium and claims to give you better return then market. but mostly their client are big investors.
But the point is, you can see how you did, by say comparing if you have invested all your money in some common technology fund or say bought an FD in india. (FX rate are highly volatile and hence last option is not a good idea.)
But it is well know, that such small time, stray investor loose to the market. One of my professor invested some money on his own, and he lost, vowed to never do that again. He is supposed to know finance.
But you could have a good hand on technology markets, in which case it's good idea.
May be I am a biased academic but there is lot of hype about investing and names like Benjamin graham, Warren Buffett and Peter Lynch are used to distract people. I say all you need to read is the book "A Random Walk Down the Wall Street" by Prof. Burton Malkiel who wrote it in 1974 but he also wrote a version recently for those not very mathematically inclined. The essense of his theory is that just buy index ETFs and save expenses. Very few mutual funds beat the ETFs. However, those who bought individual stocks like GE, Microsoft, and Intel long time ago are doing fine despite the downturn after 2001.
It is true that individual investors who want to beat the market usually lose money. At the same time I would like to state that in modern times you have to know about investing if you want to have a reasonable retirement. So, read Prof. Malkiel's books.
It is true that individual investors who want to beat the market usually lose money. At the same time I would like to state that in modern times you have to know about investing if you want to have a reasonable retirement. So, read Prof. Malkiel's books.
Making money in stock market needs really very sharp financial reflexes and is not an easy task for an indivudual. I made most of my money by investing in property. If one uses little common sense, returns are really great and investment is 100% safe. Think of investing in Bangalore..Property has been rising there really very fast .(almost 30% every year lately)...
Rajendra
Rajendra
sonalisingh
New member
Rajendra,
If you live in Delhi, how do you manage your property in far away locations. Don't you worry about someone grabbing your land and so on.
How do you buy property ? Through local property dealers ?
With all the shady stuff that goes on in India it would seem rather scary...especially for those of us who are mainly resident abroad.
If you live in Delhi, how do you manage your property in far away locations. Don't you worry about someone grabbing your land and so on.
How do you buy property ? Through local property dealers ?
With all the shady stuff that goes on in India it would seem rather scary...especially for those of us who are mainly resident abroad.
Sonali,
First and foremost one has to take the fear out of mind, if one wants to grow. Look at MNCs how they open offices in remote countries and appoint people whom they never meet face to face. Its funny that people invest in companies whose CEOs they hardly know.
Few tips for investment in property are;
1. Purchase from original buider after you have verified his background based upon his past records of successfully developing the properties.
2. Visit property once in 3-6 months.
3. Preferably invest into apatrtments which have compound walls and are gaurded .
Ofcourse you have to make some friends in the local staff who take care of property. Ring them once in while.. Most important, let everyone know around that you are a tough guy and can take head on if some one really dares to play dirty...Trust me, no one will come within 100 yards of your property..
I strongly recommend that those of you who have some spare money, investing in cities like Bangalore will bring certainly good returns..there are other money multiplier property projects which I can not discuss here on open forum..
Rajendra
sonalisingh
New member
Why wouldn't you want to mention that...
unless you are still in the process of acquiring
these properties...if you already have invested there, marketing them is good for you.
Also, how easy is it to move money from your
India investments back to foreign accounts ?
I take it from your post that you primarily
invest in condos/apartments within
residential compunds rather than land
(which is more susceptible to grabbers).
unless you are still in the process of acquiring
these properties...if you already have invested there, marketing them is good for you.
Also, how easy is it to move money from your
India investments back to foreign accounts ?
I take it from your post that you primarily
invest in condos/apartments within
residential compunds rather than land
(which is more susceptible to grabbers).
I never believe in discussing serious business issues at open forums like this Sonali. Moving money from India to UK or USA is not a problem at all these days. You can move millions from the sale of property and its all legal. One can make money in various degrees from the property depending upon how much and for how long one is willing to invest. I am investing in open land also, but only in my area where I have my own people to take care of it.
Rajendra
sonalisingh
New member
Of course, Rajendra, comparing MNCs to Ramu Shamu investers is probably not a great
idea. MNCs have a lot of money/political/business
power behind their operations and can easily afford to take risks. In any case, MNC money is not an individual's, and often the risk takers are not the ones who will lose substantially.
Certainly these cannot be compared to individual investors. In most cases it is most of their lifetime earnings that they put on the line. So I'm sure their concerns regarding the safeguarding of their property cannot be taken lightly.
I myself am aware of people (my own gaonwala) who specialise in land grabbing/forceful evacuation and so on. Hes made quite a bundle. I've also know many NRIs who've basically given up on their property because of grabbers or general inability to get it vacated.
That said, I do agree with you in principle that you gotta take risk to make things happen. But in the case of property in India you really need to be there watching closing and with some muscle powere behind you. That is just the nature of the beast.
idea. MNCs have a lot of money/political/business
power behind their operations and can easily afford to take risks. In any case, MNC money is not an individual's, and often the risk takers are not the ones who will lose substantially.
Certainly these cannot be compared to individual investors. In most cases it is most of their lifetime earnings that they put on the line. So I'm sure their concerns regarding the safeguarding of their property cannot be taken lightly.
I myself am aware of people (my own gaonwala) who specialise in land grabbing/forceful evacuation and so on. Hes made quite a bundle. I've also know many NRIs who've basically given up on their property because of grabbers or general inability to get it vacated.
That said, I do agree with you in principle that you gotta take risk to make things happen. But in the case of property in India you really need to be there watching closing and with some muscle powere behind you. That is just the nature of the beast.
sonalisingh
New member
I do understand that Indian govt has made it EASIER to move money around, but moving millions around just like that...well I'm not sure. There are often a lot of gottchas...but
I don't have the details or knowledge to back my statements.
Someone forwarded me the following in response to my query. Can't say if it is current
but it would seem to imply that there are hard restrictions.
The facts are:
Can sale proceeds of such property if and when sold be remitted out of India?
In respect of residential properties purchased on or after 26 May 1993, Reserve Bank considers applications for repatriation of sale proceeds up to the consideration amount remitted in foreign exchange of the acquisition of the property for two such properties. The balance amount of sale proceeds if any or sale proceeds in respect of properties purchased prior to 26 May 1993, will have to be credited to the ordinary non-resident rupee account of the owner of the property.
Are any conditions required to be fulfilled if repatriation of sale proceeds is desired?
Applications for repatriation of sale proceeds are considered provided the sale takes place after three years from the date of final purchase deed or from the date of payment of final instalment of consideration amount, whichever is later.
In simple words, you can take out of India only the amount that you paid in foreign exchange to buy a property to begin with - any profit has to be used in India. And you must hold it for three years.
I don't have the details or knowledge to back my statements.
Someone forwarded me the following in response to my query. Can't say if it is current
but it would seem to imply that there are hard restrictions.
The facts are:
Can sale proceeds of such property if and when sold be remitted out of India?
In respect of residential properties purchased on or after 26 May 1993, Reserve Bank considers applications for repatriation of sale proceeds up to the consideration amount remitted in foreign exchange of the acquisition of the property for two such properties. The balance amount of sale proceeds if any or sale proceeds in respect of properties purchased prior to 26 May 1993, will have to be credited to the ordinary non-resident rupee account of the owner of the property.
Are any conditions required to be fulfilled if repatriation of sale proceeds is desired?
Applications for repatriation of sale proceeds are considered provided the sale takes place after three years from the date of final purchase deed or from the date of payment of final instalment of consideration amount, whichever is later.
In simple words, you can take out of India only the amount that you paid in foreign exchange to buy a property to begin with - any profit has to be used in India. And you must hold it for three years.
sonalisingh
New member
Rajendra (or anyone else for that matter):
[With apologies to Ajmer. He started this thread with a different intent but it has drifted in a different direction.]
Here is another hypothetical property question. Maybe with you street smarts you may be able to answer this best.
Imagine you have a 2 crore commercial property in small town Haryana (Rohtak/Panipat/Sonepat). You are a resident abroad (foreign citizen), and though it is "your town" and you do have some "support" to handle "situations", you don't really have the political or muscle power to tackle adverse elements who might have their eyes on your property. Also, you are not willing to sell that property.
You further decide that managing a business out of that property is not your cup of tea.
How would you go about effectively utilising that property ? Here are some questions that come to mind:
o How would you determine acceptable and desirable returns from that property ?
o How would you determine some growth criteria for these returns over a period of time ?
(Inflation ? Devaluation of the rupee ? )
Lets simplify this a bit. Let us say that someone offers to take it up for rent, and is willing to pay you 1Lakh a month, but wantd to bind you for a period of say 10 years. Further let us say this person has money and muscle power and in a tussle he'll likely end up having the upper end. There is a real fear that he may not easily vacate after the 10 years. Further, as I understand it Indian law sides with someone who makes an argument "Sarkar, yeh dukaan toh meri livlihhod hai...issko main khali nahin kar sakta".
In such a situation, and given that you are not getting too many other offers what would you do. Here are some things to consider:
o Is 1lakh an appropriate amount of rent ? How do you determine that ?
o How do you determine some regular increases in the rent amount over the contract term.
o The very real fear of getting tied down to a rent when the inflation soars.
o Devaluation of the rupee...what if you had repartiated that money into dollars....
I guess I had more....but this will end up being a business case study rather than an informal Jataland post.
But I'd be interested in how you would approach this issue.
[With apologies to Ajmer. He started this thread with a different intent but it has drifted in a different direction.]
Here is another hypothetical property question. Maybe with you street smarts you may be able to answer this best.
Imagine you have a 2 crore commercial property in small town Haryana (Rohtak/Panipat/Sonepat). You are a resident abroad (foreign citizen), and though it is "your town" and you do have some "support" to handle "situations", you don't really have the political or muscle power to tackle adverse elements who might have their eyes on your property. Also, you are not willing to sell that property.
You further decide that managing a business out of that property is not your cup of tea.
How would you go about effectively utilising that property ? Here are some questions that come to mind:
o How would you determine acceptable and desirable returns from that property ?
o How would you determine some growth criteria for these returns over a period of time ?
(Inflation ? Devaluation of the rupee ? )
Lets simplify this a bit. Let us say that someone offers to take it up for rent, and is willing to pay you 1Lakh a month, but wantd to bind you for a period of say 10 years. Further let us say this person has money and muscle power and in a tussle he'll likely end up having the upper end. There is a real fear that he may not easily vacate after the 10 years. Further, as I understand it Indian law sides with someone who makes an argument "Sarkar, yeh dukaan toh meri livlihhod hai...issko main khali nahin kar sakta".
In such a situation, and given that you are not getting too many other offers what would you do. Here are some things to consider:
o Is 1lakh an appropriate amount of rent ? How do you determine that ?
o How do you determine some regular increases in the rent amount over the contract term.
o The very real fear of getting tied down to a rent when the inflation soars.
o Devaluation of the rupee...what if you had repartiated that money into dollars....
I guess I had more....but this will end up being a business case study rather than an informal Jataland post.
But I'd be interested in how you would approach this issue.
Sonali,
I do things by gut feelings and never worry about too many hypothetical situations. Ofcourse I am prepared to face them all as and when they come....Best way to decide is to do things which one feels comfortable with..
Investment and marriage are alike where one can not predict everything. However, if one starts with too many precautions and doubts, one ends up never investing or never getting married...
Rajendra
I do things by gut feelings and never worry about too many hypothetical situations. Ofcourse I am prepared to face them all as and when they come....Best way to decide is to do things which one feels comfortable with..
Investment and marriage are alike where one can not predict everything. However, if one starts with too many precautions and doubts, one ends up never investing or never getting married...
Rajendra
What is a good investment? (Was: Which stocks are you buying?)
No need to apologise. Stocks are just one kind of an investment. Maybe it is better if we can explore all kinds of investments. In fact, I would highly support a Investments section on this site just like Career, Humer etc.
Now, about your hypothetical situation - yes this is a very realistic situation that one has a significant investment in India while living abroad. In most cases, this is a very difficult situation. It is very hard to manage a real-estate investment in India if you are not activly involved in managing it. Just leaving it there means slowly loosing a grip on it.
In many sitautions, the reason for keeping such a real property investment in India is that the person thinks he/she will retrun back to India. Then he/she takes too much time making this decision about returning back. And by then it is too late and now either the property is gone or their control over doing anything with the property is lost.
I am really not experienced on what is the best way to handle such a situation. But I think if one has 2 crores worth of property, he/she must really do something about it right now before you loose it - actively manage it, sell it or get closer to it.
-ajmer
No need to apologise. Stocks are just one kind of an investment. Maybe it is better if we can explore all kinds of investments. In fact, I would highly support a Investments section on this site just like Career, Humer etc.
Now, about your hypothetical situation - yes this is a very realistic situation that one has a significant investment in India while living abroad. In most cases, this is a very difficult situation. It is very hard to manage a real-estate investment in India if you are not activly involved in managing it. Just leaving it there means slowly loosing a grip on it.
In many sitautions, the reason for keeping such a real property investment in India is that the person thinks he/she will retrun back to India. Then he/she takes too much time making this decision about returning back. And by then it is too late and now either the property is gone or their control over doing anything with the property is lost.
I am really not experienced on what is the best way to handle such a situation. But I think if one has 2 crores worth of property, he/she must really do something about it right now before you loose it - actively manage it, sell it or get closer to it.
-ajmer
Rajender Ji,
I have to disagree with you here. The only similarity I can see between marriage and investment is that you have to be actively involved in them. If you leave them alone, you risk loosing them, especially real property investments in India. But ...
- You can't take investment as seriously as you should take marriage
- You will have one investment today and another tomorrow, I wouldn't reccommend doing that in marriage
- Investment is for money, marriage shouldn't be.
There are just so many other differences between marriage and investment.
OTOH, Wouldn't it be great if they were similar. Oh ya, one could buy a bunch of husbands today and just sell some of them at loss if they weren't good enough.
Already it is a bazaar out there, (almost) everything is for sale for the right price.
-ajmer
I have to disagree with you here. The only similarity I can see between marriage and investment is that you have to be actively involved in them. If you leave them alone, you risk loosing them, especially real property investments in India. But ...
- You can't take investment as seriously as you should take marriage
- You will have one investment today and another tomorrow, I wouldn't reccommend doing that in marriage
- Investment is for money, marriage shouldn't be.
There are just so many other differences between marriage and investment.
OTOH, Wouldn't it be great if they were similar. Oh ya, one could buy a bunch of husbands today and just sell some of them at loss if they weren't good enough.
Already it is a bazaar out there, (almost) everything is for sale for the right price.
-ajmer
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