- Wealth PMS
5×5: Five articles summarised in five lines 🌟
- Gold: Is gold still an efficient investment option?
- Framework: Yale model of investing
- Commodities: Water as an investment
- Personal Finance: When do you need a financial advisor?
- Concepts: Don’t take emotional decisions in bear market
Is gold still golden?🏅
- Gold is a celebrated asset class across the world yet it is failed to live up to its expectations
- Gold hasn’t proved to be a hedge against inflation
- Gold hasn’t been effective in protecting your wealth during a crisis like war
- Gold hasn’t been an instrument that’s an efficient wealth compounder against alternatives
- The best way to invest in gold is through SGB bonds
The Yale’s Model: People, People, People ⭐️
- Top Gun made a billion dollars at the box office through the same playbook it used for the original movie.
- Similarly, investing also has time tested playbooks that help make effective decisions.
- David Swensen, who managed Yale’s endowment fund, believes that investing in, investing with, and investing for good people enables long term wealth creation.
- Superior performance most often results comes from colleagues, teammates, and partners who make each other better.
- In a period like the one we are currently living through, one defined by increasing uncertainty, declining confidence, and an unclear road ahead, sticking to a proven playbook focused on high quality people is as important as ever.
Water as an investment? 🌧
- Water businesses have a recession hedge because of the perpetual and natural demand for water, which isn’t driven by fluctuations in gross domestic product.
- We use water in our daily life whether GDP is up to two or down two.
- The water industry is characterized by some of the most positive long-duration, inflation-protected pricing power of any industry, and it’s not well understood by many or most investors.
- Despite being a very valuable natural resource we have grossly mismanaged it.
- As an investor, we should also consider water scarcity as a covariant risk and integrate it into risk-return ratio calculations.
Isn’t there enough free advice out there, already? 🤔
- Money management is crucial now more than ever, given all the wealth that has been lost in the last six months.
- If you are tired of doing it yourself, you may need a financial advisor who takes more informed decisions.
- If you have complex financial life and need help navigating it, then hiring an advisor might be right for you.
- If you want a second opinion or you need someone to talk you off the ledge during a volatile market, hiring an advisor can do wonders for your financial peace of mind.
- Lastly, you should only consider hiring a financial advisor if you aren’t on the fence about it. If you are still debating, then it’s not for you.
Don’t decide emotionally☝️
- Our emotions not only impact our decisions, they can dominate them; leading us to make choices contrary to what we would rationally believe to be the best course of action.
- The severe negative emotions that we may experience during a bear market, such as fear or dread, leave us vulnerable to overstating the risks of a given situation leading to rapid, short-term decisions.
- There are two ways to ward off the dangers of emotion-laden decision making.
- First, is to remove ourselves from emotional stimulus – turn off financial market news and check our portfolios less frequently.
- Second, we should never make in-the-moment investment decisions, as these are likely to be driven by how we feel at that specific point in time.
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