Friday, May 20, 2011

The Inner Secrets of Finance

There is nothing on the planet as interesting as the inside world of the way finance and global power works. Behind every war, politician, country, Independence movement, terrorist attacks or even the world wars - finance plays a major role. It is just that most people are never taught or encouraged to learn about the way things work inside the world of finance. But whoever enters the inner world of the way finance works, and meet people on the inside, you will discover that it is way beyond thinking about which Mutual Fund to invest in and which Insurance plan to select.

Look at India - have you ever thought how we were colonized? We as Happionaires are supposed to think about everything around us, because that is how we learn. India itself was not colonized by troops and armies entering our country - there was hardly any bloodshed or military takeover, it was simply with the power of finance, The East India Company that was backed by traders and financiers colonized an entire nation. A handful of financiers have the power to rule over millions of people.

Even today nothing much has changed, the financial class still control almost everything around us, while the masses are forced to follow the rules of a conventional educational system that in no way encourages the mind to think.

Over time, I love hearing from people who have thought about events happening in the world. When currencies are being devalued, all those who think and invest in gold made and are still making money. Similarly now as we see real estate companies facing a cash crunch, there is an excellent opportunity emerging. I personally am looking at this company, which will benefit from higher interest rates and the lack of cash available to developers who have already taken heavy debt. Of course this company is much more riskier, than the one affected by pests, and thus I don't feel like really sharing it. It is one of those personal passions and likings. Investments made largely on a guy feeling and intuition first and then backed by reasoning and logic.

Of course analysts have been bashing this company, but most likely that is a good sign. I find it quite amusing and nice, when I see what 'analysts' share reports. These were the same guys, who caused the fiasco with CDOs and Sub-Prime toxic investments and the same guys who told everyone to stay away from Indian Hotels, during the terrorist attacks and the same guys who told everyone to be careful when the Sensex was at 9,000 levels. It isn't their fault, when you are in the formal space of finance and investing, you are constantly under pressure. You can't think freely.

Small children are much more intelligent than rigorously trained MBAs - because they are open to new thoughts and ideas. I have always experienced that the best investors and businesses are headed by people, who are like children, free and open to new ideas.

Today pick up the newspaper, the financial newspaper, and read any headline - I can assure you that there is a back story to it, which people on the inside don't want you to know. So when you read an article about how you should invest in a safe "SIP" in a "Mutual Fund" you should start thinking if the article was sponsored by somebody who runs a Mutual Fund? Do the rich really follow a robotic SIP? Or do they look for opportunities and make the most when times are bad and valuations are cheap?

Would you have made more money, had you picked up size able amounts of investments during the Crash or had you done an SIP and even bought at the peak? I find it hilarious that even today in a world, where supposedly information is freely available, there is such a large gap between the haves and have-nots. And in today's world it isn't just about money, but knowledge.
The good thing is those who have a burning desire, can get on the inside - but then again what percentage of people really have the burning desire to do so?

There is a joke, which actually calls SIPs- Suicide by Investing Patiently. The ones on the inside of the financial system don't speak about SIPs - but speak about capitalizing on opportunities when valuations are cheap, when there is widespread fear and distress amongst the masses, the use it as an opportunity. The ones on the inside, know that there is a lot more to what is happening between the US Dollar and the EU and what the IMF has to do with it. When we meet in person, I shall share more on these things. To understand the depths of this, it is important to meet.

Close your eyes for a moment - and just think with a cool mind, what is happening around you, sit in a nice cool, peaceful environment, maybe near the sea or in the midst of trees and flowers, and let your mind flow and thoughts flow. Feel the positive and diving energy filling you as you take in deep breaths and over time you will realize investment ideas coming to you. Not just on investing, but life, thoughts that have the power to change your future.

Will give all of you something to think about: As petrol prices rise, I suggest all of you start looking at an alternative...this alternative will create a lot of new wealth.

Keep smiling and happy investing!
Yogesh Chabria


Ashish Ahuja said...

Yogesh ji as well as all other fellow happionaires what i love about being a part of this group, is that we are never 'ordered' or told this is right and rthis is wrong, we are simply encouraged to think for ourselves. In the bginning i would sometimes find it irritating, because Yogesh ji you would never give us spoon fed answers and always give hints and tease us with knowledge, till i realized how correct your ways were. We value it more when we do it ourselves. Also every once in a way when you share a report, i realize if it was free we wouldn't value it.

I want to meet you, please tell me when, where and how. Am willing to travel to spend a few minutes in your company.

Love to everyone.

Neena said...

I loved reading Cash The Crash, and I was lucky to buy Indian Hotels at that time , did go on to be a very good thing for me....i still can't stop laughing after reading your views on sip ..i should share it with my banker......always love this about being a happaionare....too Ashish ..and others...yes...i think..we..should..all meet in the real world...tell

Naresh Pisharody said...

What could happen when petrol prices rise? Good food for thought. Would vehicles move to gas based or electric power? Who could benefit? Or does it mean OMC make lesser margins? interesting. Waiting to hear what fellow happionaires think of it.

Anonymous said...


I ve been reading all your articles and you have advised to move towards gold.

I read an article from Business LIne yesterday which talks about bringing gold as inernational standard, i am not clear
what this article means and if this move is good or bad for gold.

Please shed some light on this article.


Deepak said...

Dear Yogesh,

Nice feed from your end encouraging Happionaire's to think on alternative for petrol.

Would really like to meet you, please share how we can go about it.


Amar said...

How can we meet you? i learnt lot in past years and there is lot more to learn from you in very easy and simple way without putting stress on our minds

Thanks & Regards

Debi Mishra said...

Excellent article. This article is as good as your book which tries to simplify the complex matters.

Very few people who know these things are willing to share the details with a common man who is willing to learn. Hats off to you.

Requesting you to keep on writing like this.


Ravi P said...

Nice posts Yogesh these days - I really like the way you encouraged all of us to think with all new fresh perspective. I know why you've timed this post now, because its so much happening around us and am sure another crash is just there - 6 months may be.

In addition, thanks for letting us know about what is happening with IMF, US and EU. All I can say in a short comment is there's one IMF and three parties at stake (US with its debt, EU with its debt and Developing nations with their power). It's full crunch between three parties to acquire IMF.

I work on a principle that "If there is a smoke, there is definitely a fire". Because all we are exposed to is always a smoke and we should have guts to reach at fire or figure it out.

If all Happionaire's are interested, here are two small gifts from me. Enjoy:

Have Patience - read both of articles in full.

Anonymous said...

This is good information sharing platform. Nice article link posted by Ravi.
I want to understand a few things if fellow happionaire can help me. I am new to investing world. Just trying to understand how things in real world works specifically related to finance.

A lot of buzz around U.S going to default, undoubtedly U.S has a lot of problems.. huge debt, printing money, debasing their own currency. Also, people are talking about China/India growth story.
My question is: China is export oriented country so if US/Europe going bankrupt, then China currency will be strong against US/Euro so their profit will be less, considering major profits of china coming from other countries. And to make their profit high till now China controlled their currency and keeping it low against USD!! How come china become world power once US/Europe defaults. Don't world will be in trouble once major westerns countries going default. US/UK default means china's less profit from export. Consumption based on china alone could make it to lead the world? I suspect.

On India's front, India is not having export to such an extent as china. Being a service oriented economy once these western countries default how come India will get its earnings from? The major clients of many IT/textile sectors are from US/UK.

Many IT/Telecom western companies came/established in India. Once US goes bankrupt, and India's currency gets strong against them. It leads to less profits as well from services export!! Isn't it or I am missing something.

Bottom line, If US/UK goes bankrupt, my guess is world will be in chaos. China/India super power hype I am unable to understand! How major wealth shift can happen from western countries to emerging economies? Please help me understand from this aspect!

Thanks and Regards,
A Confused Investor!!
Who want to learn how things woks!

Anonymous said...

Hey - I am certainly delighted to discover this. Good job!

sanjeev said...

If the petrol price rises, people will get their car fitted with CNG & LPG kits. So how is the idea of investing in those companies which are manufacturing these kits ?

credit card application said...

I appreciate the way you have described here about the secrets of finance. Very interesting blog! And I am totally agree with your views about growth of the finance market. Even India has developed its financial market very fast. International standard of market is growing good. And what you have described here about other country's market, that is excellent. Thanks friend!

Pt said...

Thousands of poor retail investors like me have missed to invest in the lows of October 2008 to March 2009. Yes I was greedy, I waited for more low prices, my mind analyzed all voices around me who predicted lower prices, I repent now. Lakhs of loss. Does it make sense to still wait for a crash. No. The next crash is due by 2015 to 2016.