The Happionaire Mantra and Women!

For a past few days - I have been silent. As mentioned earlier too, periods of silence are needed when nothing new is happening. What we spoke about in the past - started happening now. Anyone with observation power would have realized that happening.

Markets going haywire, correcting, real estate in overheated areas going down -Lower Pare in Mumbai for instance, Gold over the long term (In the recent few weeks there have been corrections in the two - the reason behind this is simple, manipulations by vested interests, but in the long term it is hard to suppress prices in physical gold. We can now realize the power of buying physical Gold over an ETF.) If you hold physical Gold - don't worry you are safe. Don't worry if you hold Rupees and are planning to invest and spend in India. The weakness in the Rupee is more to do with the strengthening of the Dollar against all currencies.

But at the same time the deadliest mistake people make is to believe that they can predict the exact movements of markets. Anyone who went 'short' in the hopes that markets are going downwards, would be wiped in a single day when markets rose 500 points. Similarly anyone who went 'long' thinking markets would rise would have lost. The Happionaire Mantra has always been simply of holding for the long term and sleeping peacefully at night.

What we did in 2008 - 2009, we are once again entering that zone. The zone of bliss where you can buy things in your own prices. With real estate prices falling aggressively, there will be good opportunities for investors.

Thanks for all the e-mails regarding the market now - my simple answer is read our earlier posts - the companies we shared earlier, continue to be excellent buys and are amongst the rare few who continued to rise since the market fell. (Alternative Energy Investment to Petrol and Invest in Oranges When Pests Attack) I'm glad almost all of you have made investments in these companies and are smiling - irrespective of where the market is headed. These companies still have a long way to go.

With God's grace soon we are launching our new book meant specially for women - Happionaire's Investment Secrets for Women. I would like to thank all fellow Happionaires here for constantly giving me the support and love to continue writing. You can all pre-book it now - I need all of you to order a copy for yourself or the women in your life or even for yourself, in case you want some insights into the way women think. Writing this book was quite exciting and my journey took me too interesting places, will speak about it more soon. I have always felt that finance, investing and money needs to be made more fun - especially for the women out there.

I honestly hope I'm able to please all the women out there! Fingers crossed!

Happy investing and don't let the small things around you bother you. And to be honest everything around you isn't as big as it looks. It's all small.

May Steve Job's soul rest in peace and may he be one with God.

Keep smiling!
Yogesh Chabria
Happionaire

Life Is More Than Just Numbers

The stock market ticker has numbers - lots of them all flashing away on the screen. Everyone who thinks they are investing thinks only about those numbers. But the beauty of life is it isn't about numbers, the beauty of investing is not about numbers, but the stories behind those numbers. The story of creativity, love, passion and sacrifice that goes in creating a business. The story of support from friends, family and loved ones and sometimes the questions asked about doing something the heart believes in.

Today the stock markets are correcting again, the same group of people, from brokers to analysts to TV presenters, all spoke about an India shining a few weeks ago are now talking exactly the opposite. I'm sure a lot of people out there will slowly start re-thinking their plans, businesses and individuals might become a bit more cautious. What happened in 2008-2009 might happen again. This is what happens, when we look at life just in terms of numbers.

Life is not just about numbers, it is about creating something beautiful. It is about doing something that the heart wants. A correction in stock prices or financial markets will have no effect on what you want to do. Provided you really have the passion to do it. If you want to do something new or believe in something don't stop doing it just because you think the financial markets have corrected. People will continue doing what they do.

There are so many interesting stories happening around us - we need to investigate them. For instance Gold rose very suddenly recently and then even corrected suddenly in a short span of time - has anyone thought what happened? Why did it go up in the first place and what made it correct? In the short term, there are lots of forces trying to push down gold prices. USA's de-rating has suddenly caused a lot of 'big' inside investors to rush to gold. I don't think America will take this lying down, there will be a lot of steps taken. Think about why S&Ps Sharma was fired, just after they downgraded US debt.

I feel their will be pressure on people holding large quantities of gold to sell it. Large pensions funds, hedge funds and even governments holding gold - will be pressurized to sell it. But from what I can see, the private holding will just keep rising, and post this battle between groups - gold will emerge victorious. I'm sure all of you must remember, how when at Rs. 12,000 and Rs. 14,000 we spoke about investing in Gold, a lot of larger and older investment houses ridiculed us and spoke about not investing in physical gold.

There have also been some price corrections in both, "The Best Alternative Energy Investment" and "Invest In Orange When Pests Attack", I will use this as an opportunity to accumulate more and take benefit from the sense of pessimism and fear creeping into people.

I hope to see all of you soon and sharing a few very interesting ideas on 2nd September at the Bombay Gymkhana and on the 3rd September at the Pune Gymkhana.

Keep smiling and enjoy life!

Yogesh Chabria
Happionaire


P.S.: Needed some advice on people from the Hotel Industry. Anyone from the hotel industry - do drop me an e-mail on yogeshchabria@happionaire.com with a brief about yourself. Thanks.

Cash The Crash 2011

A lot of people have been e-mailing and thanking me for the ideas shared on gold as well as a few basic companies shared in the recent past. I thank you from the bottom of my heart for the kind words, but at the end of the day it isn't rocket science. It is just simple common sense that over time everyone can apply. Each one of you can listen to your inner voice, and you too will be able to understand what is happening. I'm a simple person and I believe that our intuition and natural instinct is the most powerful. I invest, live and do business based on it and by the grace of God, it has always made me happy. Listen to yourself and you will only have yourself to thank or sometimes when you go wrong, compliment yourself that you gave yourself a new learning experience.

I don't use any complicated charts, software or analysis. Whatever is happening today in the market, comes as no surprise to anyone of us Happionaires. In fact, had it not come, it would be a surprise. Gold is going up, because of a very simple logic - it can't be printed. (In case in the future some Alchemist comes up with a way to convert all the stone on the planet into gold, the prices of gold will crash and it will be worthless.)

But where will this correction stop? I don't know - and it really doesn't matter, as long as you are invested in good companies. In fact the companies a lot of us now hold, have increased in price, ever since the market started crashing.

So now once again like 2008 - 2009 we have lots of voices coming out and sharing their views. We have one voice which is talking about how everything is alright and there is nothing to worry and another voice talking about how it is the end of the world and for India. I am someone who is an eternal opportunist. While, yes there are a lot of companies that are going to face challenges - as interest rates go up, companies with heavy debt will be in trouble. Infrastructure growth and funding might slow down, but in the midst of all this there will always be companies that will reward you for the longer term. We all saw how our investments made in 2008-2009 rewarded us.

But this time things are a bit different. In 2008-2009, to be honest the problems weren't really solved, they were just pushed ahead a bit. I think now the world will have to face the problems - and the good thing is when we face problems we can solve them. There might be some challenges, but it is all for good.

The present period, I sense will be even more rewarding than 2008-2009. I have been buying more of this company, as the present crisis will benefit it further - but besides this many companies will soon come at cheaper valuations.

However, at this moment I feel what the RBI is doing is not correct. They have not been able to control inflation, which is threatening more and more people of our country. Instead of raising interest rates further, (I sense interest rates will go up all the way to 12%) they can adopt a more creative approach. They can help industry, agriculture, infrastructure produce more - this brings in more supply. They can help increase the power of the Rupee, so our major imports become cheaper. They can try and reduce taxation - and in turn command our politicians and Government to become a bit more responsible with the way they spend money.

Silver at the moment would also be good - but more from a traders perspective, but Gold even though a lot of large investment banks has started talking it down (But weren't the same guys talking it down even when it was at Rs. 14,000 levels?) it still makes sense. Gold is a big threat to paper - that might not be of much value.

Quantum Dynamics has organized programs on 2nd September at the Mumbai Gymkhana, and at the Pune Gymkahana on 3rd September for all Happionaires. I'm glad they are so passionate about spreading the message of Happionaire investing, I hope each one of you shares details about our program with all your friends, family and loved ones. In case any of you isn't happy with the program, I would love to personally refund whatever you have paid Quantum Dynamics. To register contact Neha 09971346274 or Email- info@qudyn.com . I'm going to see all of you there!

Keep your eyes and ears open. Things are going to get exciting once again.

Yogesh Chabria
Happionaire

What Is Your Dream?

It was lovely meeting fellow Happionaires at our program that happened last weekend at the Bombay Gymkhana organized by Quantum Dynamics. It was fun, we had some good laughs and gained some insight into looking at investing slightly differently. We had lots of interesting discussions, and to be honest besides sharing a few ideas of my own, I got to learn a lot more from all those had attended. I always believe that each one of us has an infinite amount of knowledge within us – we just are afraid to tap it. Investing, business and a lot of other things in life are all inborn. We all ‘know’ within us what is right and what is wrong.

We had a few Happionaires who had travelled from Pune, Surat as well as Dubai. It encourages us to go out and spread the message to more and more people. It is a very simply message, but at the same time very important and powerful. I request all those who had been a part of the program to share whatever they learnt with all those around them.

Also the few companies shared in the program, I would like to give it to all those of you who were able to figure it out and e-mail it. A fellow Happionaire, Kamal Barbaria, was fun and shared an interesting company for all of us to guess. The company happens to be in the agricultural sector – linked with micro-nutrients for plants. It has an excellent distribution network already in place and has prime land in areas of Mumbai. The existing distribution network restricts competition. Any guesses which company this is? (I have been doing some research on it myself!)

I’ll like to take some time out and meet more of you. Do let Quantum Dynamics know if you want them to organize something in your city too. I would love to see you.

A lot of people asked me what is being a Happionaire about. I don’t have any particular definition for it. It is like asking to define what is it to have wind blowing through your hair and face near the sea. Life can have no definition, it is just a wonderful experience. I thought I will share what the Happionaire experience is all about. Just a few words that are from my heart.

Once there was a small boy. He had a dream, he wanted to do something incredible. He wanted to do something that would change the world forever. Something that nobody else had ever done, something that he loved. Something his heart had always told him to do. He had this dream even before he went to school. Even before he was trained and taught by teachers. He knew he would do this. But then school happened. Studies happened, tuitions happened, he was taught that failing and making mistakes was wrong. He was forced to memorize things. He was forced to kill his creativity and desire to learn. He was forced to kill his dreams because everyone told him that he should do something that was ‘safe’ something that everyone else was doing. He was told not to think from his heart – because the real world doesn’t think from the heart.

He was forced to take up a job he didn’t believe in, follow orders and do things his heart didn’t want to. Tolerate 20 hour work days, live his life burdened with stress, anger and hate. He had never been encouraged to learn about money and finance and now the only thing he longed was for his monthly pay cheque. He spent it on things that didn’t make him happy. He lived a life for others. He lived a life that wasn’t his own. He started drinking and smoking, trying to forget his life.

Had he just listened to his heart. Had he just followed what his innocent, pure, filled with creativity mind and heart had told him as a child. Wouldn’t life be life today? It still isn’t late for him. He can start living once again. He can be what the child in him wants to be.

He can once again laugh, smile and do things he loves. He can stop constantly thinking about buying things he doesn’t need, he can stop living for others, he can start enjoying things he really wants. He can stop worrying about money and finance, because he has made the right decisions and if financially independent. He doesn’t have to be scared of anybody because he owes them anything. He lives free. He lives happy. He simplifies everything and isn’t afraid to make mistakes. He is finally living life.

He just has to dare. He just has to embrace a new way of life and thinking. That is what being a Happionaire is about. I welcome the world to being Happionaires!

Keep smiling and having fun!

Lots of Love,

Yogesh Chabria

Happionaire

No Intelligence - Failure!

When somebody doesn't do their duty over and over again in an office - what happens to them? They get fired. When a businessman doesn't perform and do his work, what happens? His company goes into losses and he goes bankrupt.

But what happens when our government doesn't offer basic security to its citizens? Over and over again, we accept a government that doesn't care about the security of its citizens. It is very sad that over and over again our fellow brothers and sisters are blown up because of a lack of security. It makes me very upset, when I see people talking about how 'strong' and 'resilient' Mumbai is. It isn't - ask the families who have lost loved ones. Ask people who have lost their hands and legs in terrorist attacks. People go to work the next day - because work is part of our life - but that doesn't mean anything. It doesn't mean we are immune to terrorist attacks. Yes, they are winning the war by killing our people. Till we don't accept their is a problem, how are we going to solve it?

Any politician who feels that there isn't a problem - should think about how they would feel if their wife, children or loved ones were at Dadar or Zaveri Bazaar when the blasts took place. Just because they live in gated communities with Z-Plus security - it doesn't mean everything is alright. If they feel security is so good, they too should get rid of their security troops and police cars following them. Why don't they?

According to any religion - it is a greater sin to tolerate evil than to do evil on others. God doesn't want his children to be scare and afraid of evil, He wants us to fight it. When we are quiet about terrorist attacks and pretend it is nothing - it is a big sin. To be honest I don't care if the next day the Sensex/NIFTY bounce up or down after a terrorist attack- if human life has no value. What is the use of wealth - if you can't enjoy it with your loved ones?

What has our government learned since 26/11? Why are terrorists like ajmal kassab and afzal guru still alive? It is high time India stops being a soft state. I'm sure, that today if any ordinary citizen was given power to rule this country for even a single day he or she would first ensure that terrorists and terrorism is destroyed. Throughout history a ruler, needs to first ensure security and safety of citizens. If the ruler doesn't, people take things in their own hands. The ruler is removed - and the enemy is destroyed.

I don't care about politicians or politics. But in this hour, our politicians should rise up to be leaders. If they can't still realize that I think each one of them should be fired. We at the moment are a country of NO Intelligence - only FAILURE. Instead our politicians are saying there was no intelligence failure.

Let us all keep our eyes and ears open to people who we feel are suspicious. If you think someone is a potential terrorist do not hesitate even for a moment to call your local police. I have done this in the past and noticed that the police force indeed does respond quickly. Also ensure you keep your eyes and ears open to people who support terrorists even in ideology. You never know what their motives are, complain about them immediately. Even if the opposite person isn't a terrorist at least you have done your duty. It is better to be safe and sorry.

God has given us a mind in order to use it.

Let us pray to those who lost their lives. May God bless their souls and may the Almighty give strength to their families and loves ones.

Yogesh Chabria

The Valuations of Trust

Over the past few weeks, I have been doing very interesting research in the real world. I'm surprised how much little work has been done in the world of finance and investing by conventional academics. When it comes to investing, a lot of things go into it. But one very important thing, most conventional academics forget to point out is the value of trust. Investing has a lot to do with trust. If you trust a company - at some level, only then will you proceed to invest. You work with people - only when you at some level trust them. You hire someone only when you trust them and you work for your company only because you trust them to pay you and take good care of you.

Trust is one of the most important 'assets' in the modern day world. It is usually the basis on which business is done. Now overtime, I have realize that Trust also helps increase valuations, sales and enhances productivity. If a company has the asset of trust, people will it money for their future ventures, they will its causes and will buy its ideology. In spite of this I find it shocking how so many people are willing to sacrifice this wonderful asset for a quick buck?

In a world where more and more scams are being unveiled, corruption is rising - trust becomes a even more important asset. I know of a lot of companies and individuals, who charges almost 50% more than their peers just because of the trust they enjoy. Companies that have this advantage are a real cash cow, because long term trust can't be created with the help of advertising or PR - but needs to be created from the ground level. It is a great competitive advantage.

For instance a particular local developer in Khar-Bandra, Mumbai has built such a reputation over the past three decades, that enables him to easily charge a premium of 25% for a similar product. For a property priced at Rs. 6 cr., a 25% increase in margin compared to competition works out to be a very large amount. He has not spent a single rupee on branding or billboard marketing, just worked to create trust amongst the local community by being honest to his word. Even a large national developer with a big budget for advertising would not be able to do this with a local community. These are the type of businesses, which make sense investing in.

Surprisingly on the stock market a few big names that enjoyed trust, have done a few things to spoil that trust. I'm sure all of you know which names I am talking about. But I do see a few new businesses, emerging that are going to stick to their moto of doing no evil.

I would love to hear from you - which business models you think have an extra competitive advantage of 'trust'?

Also Quantum Dynamics, has been lovely as always and organized a day long program on Happionaire Investing in Mumbai. It's at the Bombay Gymkhana on Saturday, 16th July 2011 from 10 to 5:30. To register contact Neha – +91 9971346274 or - Mahesh- +91 9920846517 or e-mail at info@qudyn.com . (Thanks to Jasmine for pointing out the typo and her sense of humour!)

I do hope to see all Happionaires from Mumbai. It should be good fun sharing ideas and looking into the future of investing! I'm sure all those who attended our last session in Delhi will agree on that. Specially after what happened to Petrol prices since then.

Have fun and happy investing!
Yogesh Chabria
Happionaire

The Best Alternative Energy Investment To Petrol

Let me ask you a simple question - what would you do if prices of a certain product kept rising? Let us say prices of red apples kept rising? They doubled and tripled - while a small minority will continue to buy red apples, the masses will stop buying it and will look for an alternative - maybe they will not start buying green apples. One very interesting part of the investing world is what I call the concept of "Replacement Investments" - these are things that have the power to replace something else. So when the e-mail came to power - it might have been an excellent replacement for the local post. Now I feel we have an excellent Replacement Investment opportunity.

Petrol prices have been rising constantly. In fact petrol would have been one of the best investment someone could have made in the past year - with several price hikes. While there were ways people could and still can benefit from these rises - another interesting question comes to my mind, what happens when petrol prices become too expensive? What is the best alternative fuel one can invest in that will help create investor wealth.

Being an investor, is a mix of being a psychologist and being someone who can predict trends and the way masses will behave to being a philosopher who can use what spirituality has to teach us. The theory of Karma which teaches us about what we sow, so shall we reap fits beautifully in the world of investing. It is one of the most exciting areas of human life. The rising petrol prices in India will automatically cause millions and billions of people to move to this alternative energy source and a few companies will benefit immensely from this new demand.

Demand for this energy source will rapidly grow in the coming few years, and the company I have started investing in will be one of the beneficiaries of this demand. The same way with the Pest affected company, this investment too is based on a few simple facts about the way people will behave when it comes to energy. On one hand people will continue to pay higher prices - but at the other hand they will constantly try to come up with new ways to reduce these costs. While with the first option - with the Pest ridden company, we are benefiting from price rises, with the company I am sharing now, we are securing the future post that in terms of new alternate energies.

While I am sharing one company from this sector, I feel the entire sector has immense potential. In the future we could see it emerging as a large scale sector that tributes to India's energy needs with almost every major business group trying to enter it.

Like all our other reports, this too is educational in nature and I will discourage anyone who has a short term view from reading it. Also anyone who has a purely academic view is advised not to purchase it, because like all our other reports, this too comes from the practical point of view of an investor. It is simple and easy to understand, because that is how I like to invest.

You can e-mail Karan at info@happionaire.com to find out how you can access this report on The Best Alternative Energy Investment To Petrol.

Happy investing and learning!

Yogesh Chabria
Happionaire


What Are The Inner Secrets of Finance?