January 18, 2009
Investment Strategy
One of my friends asked me the other day, what is the best Investment Strategy, that works all times ?
I thought for a while and it occurred to me that my parents, their parents, possibly my great grand parents, always followed this model.
20% - Gold
20% - Fixed Deposit
25% - Land (remember not an Apartment, not a built house, it was land - they lived in rented houses for most of their lives)
10% - On LIC or Other Postal Instruments of Investment
15% - Cash (remember they always had cash for the rainy days)
10% - Risky bets (they used to deal in Chits, or give short term loans to friends or bought depreciating assets)
They never owned Stocks, they never dealt with Mutual funds (or any other funds), nor did they invest in unnecessary real-estate, and they lived their lives happily ever after.
Tell me, is it so difficult ? The truth in today’s world is that information is ubiquitous, common sense is not.