Sunday, June 29, 2008

Have Politicians Forgotten The Theory Of Karma?

Politically things are not that good in India. I have always believed that whatever good has happened in our country has been because of people like you and me and never because of politicians. During the time of independence we had great people giving up their lives for the freedom of our nation, but after that we had politicians who were not afraid to take away lives for their own benefit. Not letting the economy and the common man prosper is the worst form of mass murder according to me.

To be honest I feel that politicians all over the world are the same irrespective of which political party they belong too. However they unfortunately have forgotten the theory of Karma. They have forgotten that as we sow, so shall we reap.

For example today our country has extremely high inflation and this is affecting all of us. But does it affect the ministers who are living in castles and have everything paid for with our taxes? Inflation can be reduced significantly if we increased efficiency and supply. We could cut down our consumption of fossil fuels by having a world class mass transit systems in major cities running on nuclear power. Imagine how much nicer it would be if we had a mass transit system like major cities in China. We would all reduce the use of cars and make sure we used the public transport.

Instead of doing what is needed, our politicians are busy hurling chairs at each other in the parliament and constantly arguing on petty issues. I find it disgusting when politicians come on TV and take credit for whatever economic growth we have. The sectors which have had growth have had it because of entrepreneurs who in spite of politicians were able to succeed. It has been because of intelligent and hard working people who have made sure their organisations and business grows. All that politicians would have done is eaten money and filled their own Swiss bank accounts.

Wrong policies and decisions by the government bodies affect all of us. They affect our investments and our lives. For instance if the nuclear deal doesn’t go through, it would certainly affect our investment grading abroad. A nation whose Prime Minister can’t decide on his own is never an encouraging sign for investors. It might lead to capital rushing out of the country in the short term.

I agree that the need for politicians has reduced compared to what it was say twenty years ago and that is been one good thing. But still we have parties like the Left trying to take our country back to the Stone Age. Not that other political parties are great. Personally I am of the view that inflation in India is not just around 11%, but much higher. Figures can be manipulated, and they always are. Just look at the prices of things we use in our daily lives, they have gone up by more than 40% in a matter of a few months.

Inflation, political problems, energy crisis, credit crunch, higher interest rates, sub-prime problem are all going to affect the markets. Investors are usually extremely jumpy and do not take rational decisions. Simply on hearing all this there is a flight of capital which has been bringing the markets down. Markets can go down further- I don’t know if they will or they won’t. Most retail investors who do not believe in value and do not bother too much about fundamentals are constantly grumbling and cursing everything now. Many of them have gone bankrupt due to taking leverage in the form of trading in futures. I understand their problem, however I wish that all of them learn from their mistakes and try to use this time as an opportunity to learn more. I too have made such mistakes in the past, but luckily I have learnt from them.

For value investors the markets going down is a great opportunity to buy, however the sad part is that most retail investors do not think this way and now even if they do, they might not have sufficient funds to benefit from this. Many will panic and sell and again after a few years will curse their luck for selling so low. My advice to them would be that use this opportunity has a time to start afresh. Every day is a new day and every day gives us the chance to start a new life. Once Edison had his whole lab burnt. Lots of his work and research was there in the lab, but he still was very happy. People were surprised and wondered why is he smiling even though his lab is burnt. He told them that all his mistakes have been burnt and he has the opportunity to start afresh. If you have made mistakes, do not worry and use this time to learn.

Less than around 4% of India’s savings goes into the stock markets. As more and more people are educated about investing, this figure is bound to rise. As this figures rises, unethical operators and dirty money belonging to politicians will be less likely to control the stock markets. As more and more people have a stake in our country’s growth politicians will be more responsible to make sure that their decisions are beneficial to investors and the capital markets. This correction has been one of the best things that could have happened for any value investor. It is giving us a chance to buy assets into an economy which still has a long way to go.

I am a strong believer in the theory of Karma. If we work hard today, learn more and invest in knowledge we will be rewarded. I was at the BSE building the other day and a good friend there who has been a part of the markets as well as the BSE for several decades very beautifully told me something from the Gita, which he has used in the markets. He told me that the Gita tells us to do our duty and not worry about the fruits and rewards. If we do our duty we will get the fruits either sooner or later. The same applies to the markets. We need to do our work and not worry about the returns in the short term. If a business is good, it shall be discovered by the masses sooner or later. These ideas are not very popular, but these are the very ideas which have stood the test of time. This simple idea runs into every area of our life. Let us all sow seeds of good in every area of our life. Do you agree with this way of thinking? Share your thoughts in our comments section.

Keep smiling and feel free to share whatever you read here with friends, family and loved ones!

Yogesh Chabria

Have you read what people had to tell Rakesh after he shared the wonderful list of L&T suppliers?

Any business needs people. Gautam Ghosh, one of the country's leading management consultants, shares a list of HR consulting firms across India. Do check it out and feel free to share your ideas with him.

Arun of also shared an interesting list of Top 10 Things India Needs To Achieve Its Potential by Goldman Sachs. The first thing on the list is "Improve Governance." I hope our politicians are reading this.


Anonymous said...

I agree. Our politicians have always wanted to encourage poverty so that they can keep getting votes. It is very easy to control people when they depend on you on everything.

I am however very optimistic that in the next 10-15 years things will change in India. They already are and this change will spread.

Anonymous said...

I'm a big fan of your ideas Yogesh. Really like the way you write and share your views. I agree with you Yatin.

blv said...

Everyone knows politicians are a big problem, especially in ours. But, the common proposed solution is that those who crib about it should get down and try to clean the mess, like what Gandhi said (Be the change that you want to see in this world). Are you game for politics?! I think many would like it!

Gopinath Mavinkurve said...

Yogesh, completely agree with your view about politicians role in our society today. In another blog, I read the author dwelling at length of the various inactions/wrongful actions of Governments and politicians. I immediately pleaded with him not to propel these petty beings into an orbit!

That the industries and the progress of the countrymen is inspite of the politicians is a foregone conclusion, we need some miracle to save us from vested interests in high places.

Today, most of the retail investors would be battling to make ends meet while inflation is eating away into whatever little savings the middle class is able to tuck away for future needs.

Maybe it is a time to dwell on savings in the face of inflation?

Adv (Dr) Lalkumar said...

I do agree. Politicians all over the world have lost the credibility and they have reduced to a bunch of unwanted lots. Indian at 60 is young, vibrant with lots of youngesters who can lead our great country to heights of successs.

I am confident that the next coming decades will be ours and we shall be shining in the world arena.

Adv Lal

Velu said...

That was absolutely superb. People do not realize the simple funda of life i.e. we reap what we sow.
But the best thing is that people like you are there to make us realize this. Thanks for the great blog.

Anonymous said...

Hats off to you Yogesh.... Very nice blog.... some time back I was also very depressed about some mistakes I had made but eventually I found it is best to move ahead rather than keep cribbing about those....
seems like now you are really getting into groove of blogging..

Aditya Palav's Blog said...

Hi Yogesh,

I partly agree with your views. I don't think we need to blame our politicians.After traveling to many parts of the country i understood that Politicians have big job in there hand as India is the country with many religions,languages,traditions etc.Don't you think that "Congress put there all efforts for Nuclear deal to happen(that to carrying the risk of throwing out of the govt.)
I think congress high command is much more than there personal benefits.
I think we can't compare our country with Western world...we have to face the issues like corruption...So I think it is too much harsh on politician community to blame because of 4-5 corrupted people.
There are people like Harshad Mehta,Ketan Parekh & many many stock analyst,stock brokers(manipulators) who play with the hard earn money of the common man. Even everybody have seen how IPO pricing is done in India,Even many people knows how insurance companies mis-guide common people by putting *.

So I feel it is much better of to concentrate on our strong points than to think about our weakness.

I really appreciate your work Yogesh nothing against you personally it is just my thoughts.

Thank You

Anonymous said...

I tend to agree with those who speak about cleaning up our own mess before playing the blame game on politicians.
Some fundamental introspection is required - "Am I part of the solution or the problem?"
India needs out-of-the-box thought leaders (and many at that) - whose purpose is progress, but can work the system and bring about dramatic change.
Of course, you know who comes to mind - Dhirubhai Ambani.
We need many like him and hopefully we are on track, by making tremendous progress in the last decade despite the myriad of obstacles - politicians included.
I truly believe India is on the path to becoming an economic superpower, and the politicians will have to change for the better.

Anonymous said...

Hi Yogesh.

it was very heartening to read ur article.How truely you have unveiled what these pocliticians r doing. Where they have time than quarrelling with each other and blaming each other for whatever is happening.They dont have value of money bze everything is free. scapegoats r we common people. come back to makets. now the most powerful bull who prdicted 30000 for sesex has suddenly became a bear and predicting lower lower targets. Thank you very much for encouraging people to truely invest in good fundamenttals and make money in 2 3 yrs time. people get pacnic and sell ateven these rtes. experieced and knowledgable people like you wrting and spreading the awarness is very heatening. God bless you.

Anonymous said...

Aditya I know this is not a blog on politics, however please look at the history of the Congress party and you will see what they have done. I am not a supporter of any other party either. I think we need to talk about our challenges as well, so we can find solutions.

I am glad you bought up this issue. Yes, even in the world of finance we have unethical people and the best way to fight them is to spread information about them. I liked your monkey's story very much Yogesh from ITHW that is how people are tricked.

akaps said...

hello fellow happionares,

The only interest of the politicians (of all the political parties including congress)in this country is themselves. They want reservations, subsidies to remain as these are populist measures for the vote bank and also make the people of this country handicapped.

All the political parties want reservations because successive governments have failed miserably in providing basic needs viz. schooling, health care to the people of this country. By favouring reservations all the parites hide their failures of providing social security to the citizens of this country.

The govts. have failed miserably in providing infrastructure like good roads, public transport etc and covering this failure by continuing subsidies on fuels which inturn is again funded by the tax payer's money. Had govt.used this money for creating efficient public transport, there wouldn't be this much need for private vehicles. Also higher price of these fuels would have prompted for research on alternatives.

But instead of these our govt. enters the fields which should be left to the private sector eg. hotels (for themselves, i think)

The Happionaire™ Blog said...

100% correct Yatin.

BLV, don't you think we can bring about the change without being in politics too? As Kapil said, we need people like Dhirubhai Ambani. If we had a 1000 more people like him, we could bring out a massive change.

Gopinath as such times inflation is a major source of worry for people. However once again if we see the best way to fight inflation is not to think about it when it goes high, but to be prepared for it from before. We all learn along the way.

Adv. Lal, I am glad there are people like you, who have the confidence and belief in our nation. This is a time when this confidence is needed, because it will help us move ahead.

Thanks C. Do keep sharing your ideas and making this blog vibrant and interesting.

Aditya, thanks for sharing your views. I'm glad you did. I am not blaming the Congress or any particular party. I feel that Dr. Singh is a very good person and economist. He has done lots of good for the nation when he was the FM and even now he is for the N-deal. I personally am behind him and now I feel that the N-Deal might go through. I do not have much regard for the Left though and their double standards.

Coming to the markets, yes there are lots of unethical people trying to dupe retail investors and indulging in scams, but as Kunal said knowledge is a cure for this. No matter how much regulation is there, we need to be informed and careful. What do you feel?

God bless you and everybody else too Anonymous and may the Almighty give knowledge to those who are indulging in wrong deeds. Also please feel free to share your name!

Akaps- excellent thoughts. The government can reduce the oil bill by billions if it develops a good public transport system. People won't use their cars. These are things what even nations like Thailand have done. The government has the money to do so now and they should use it. Just because they travel in luxury cars, that doesn't mean they should not care for the nation. This is something very basic and simple and I really hope they focus on it.

Our blog isn't just about me but also about fellow Happionaires. We all get to learn from each other. I think each one of us has a writer in us who has lovely ideas to share.

Keep smiling and spreading the love.


Anonymous said...

I like the way you link philosophy with the practical scenario.....i am strong believer of karma and its principles, if we apply the same to our daily life, we will prosper and will also contribute to other person's growth. In this way, the whole society will get benefits.
Thanks for this excellent post and keep doing the good work :)

metoo said...

With due permission of the moderator, can I please post this saying :

"often we stand at life's crossroads & view what we think is the END.but GOD has much BIGGER vision & HE tells us "relax my child, its just a BEND & not THE END"

Anonymous said...

Loved the Edison story :) Regardless of how things may be around, there's always so much positive energy here and that's the thing I love about your blog. You are the poster boy of optimism Yogesh!

Never lose that spirit and keep smiling :)

Take care!

Anonymous said...

We all know that biggest problem we have in our country is bad governance. The credit goes to our highly corrupt political class.I also tend to think India has the greatest resource of manpower but over the years we acheived very little. Look at Singapore, equals to the size of kolkata but one of the most developed country in Asia.
So what we need to make our country, a great nation.
I fully agree with Yogesh for his views. Please keep writing such encouraging blogs. We all need them.


Anonymous said...

We all know that biggest problem we have in our country is bad governance. The credit goes to our highly corrupt political class.I also tend to think India has the greatest resource of manpower but over the years we acheived very little. Look at Singapore, equals to the size of kolkata but one of the most developed country in Asia.
So what we need to make our country, a great nation.
I fully agree with Yogesh for his views. Please keep writing such encouraging blogs. We all need them.


Anonymous said...

Hi Yogesh,

This is Dev from Kerala.
Found this blog and your views really interesting.I have joined with my email id in this forum and am receiving your posts too.

Great job.

I am also of the opinion that FIIs will withdraw and they will be replaced by domesting savings, especially from the vibrant youth and those high income people who find FDs giving negative returns.Companies which are driven by domestic demand will continue to do well.

Anonymous said...

The public transport should be encouraged as much as possible.
Instead of giving subsidies to diesel and petrol, Govt can give tax cut to container lorries, buses and the railways so that the common man is not hurt by rising prices.