How to handle Failures !

Key to Success - Never Quit

Accept the responsibility of your own failure & the fact that failure is part of life. Give yourself time to come out of failure. Use that time to analyse the reason for failure. If you think that you WRONG, try to change yourself. If you are RIGHT & recognize the fact that it's not the end of the world & there are plenty of opportunities around you if you can explore. Just make sure that you are OPEN to listen the events happing around you. Forget the past and focus on the future. Give your best shot !


Failure is common to all of us, one of the most important life-skills you can learn is how to respond to it. Mature people know how to turn every failure into a learning experience, a stepping stone for future success.


Being defeated is often a temporary condition. Giving up is what makes it permanent - Marilyn Vos Savant


I am not judged by the number of times I fail, but by the number of times I succeed… and the number of times I succeed is in direct proportion to the number of times I can fail and keep on trying - Tom Hopkins


I’ve missed more than nine thousand shots in my career. I’ve lost almost three hundred games. Twenty-six times I’ve been trusted to take the winning shot and missed. I’ve failed over and over again in my life. And that is why I succeed - Michael Jordan

Key to Success - Never Quit

Key questions for a successful 'Business Plan'

Key Questions to be asked as part of 'Business Plan':

* What product or service does your business provide today?

* How does your business produce or provide the product or service right now?

* How will customers use your product or service as it exists right now?

* How will your business generate immediate revenue?

* Who are the primary clients your business will target immediately?

* How will you market your startup to prospective clients with the resources currently at your disposal?

* How are you different than your competitors right now?

* What secondary and tertiary client bases you will target once you’ve achieved success with your primary base?

Once each above question, evaluate your findings with these six questions:

* What worked and what didn’t?

* What was the result of each action step?

* Was the overall experience positive or negative? Why?

* What did you learn during the process?

* Which steps can be modified or improved for better results? How?

* Which need to be deleted all together?

ref:

http://entrepreneurindia.in/the-one-paragraph-startup-plan/8022

How Much are You Really Worth?

How Much are You Really Worth?

Let's think that we can invest Rs 10,000 per month. Over a 30-year period this investment will mean a total earning of Rs.36 lacs. If invested at 10% per annum (rate of return) at the end of every month during this period, this will mean a sum of Rs 2 Crores 23 Lacs 70 Thousands at the end of 30 years. Check the following table to find out results for different periods and different rates of return:

Rs10,000 Per Month Will Become		At 10% Per annum		At 9% Per annum		At 8% Per annum		At 7% Per annum
		Rs Lacs		Rs Lacs		Rs Lacs		Rs Lacs
After:
30 Yrs		223.70		182.58		149.73		123.42
25 Yrs		131.77		112.12		95.74		82.07
20 Yrs		75.67		66.96		59.41		52.85
15 Yrs		41.43		38.03		34.96		32.20

The above data give you an idea about the size of your investment for the rest of your working life. This is true at every investment and at any rate of return on account of regularity and time value benefits...

The Truth About Your Money Now !

Let us try to find out the quantum of real gain/loss in value of your money with reference to a 8.5% annual rate of inflation that we should normally plan against. A sum of Rs 1,00,000 will be worth the following amounts after the periods mentioned in column 1 at various rates of returns as indicated in the following table:

After :	At 10%	At 9%	At 8%	At 7%
10 years	1,14,717	1,04,705	95,486	87,004
15 years	1,22,869	1,07,140	93,306	81,154
20 years	1,31,601	1,09,631	91,176	75,697
25 years	1,40,953	1,12,181	89,094	70,608
30 years	1,50,969	1,14,790	87,060	65,860

**(Tax Effect Not Considered)

Thus, if you are earning a rate of return lower than the rate of inflation, you will not be actually growing your money...

Similarly, the more the actual growth rate of your money is above or below the inflation rate, the faster your real money will grow or deplete, not proportionately...

Stock Market Analysis : Underpriced market vs Fairly priced market vs Overpriced market

Think before you Leap !

This is certainly the best time to invest in market. The problem, however, is that most of us would have exhausted all our money when the market was at peak. By the time market crashes, most of the investors would have lost a good portion of their investment. This is precisely to avoid such situation, asset allocation makes sense.

Underpriced market: PE < 14

Usually a PE of less than 14 is taken as a sign of underpriced market. In an underpriced market, investors can invest 75% of the money in equity and equity oriented mutual funds and 25% in bonds and conservative mutual funds. Since the stock market is down, many good stocks will be available at very attractive price.

In March, 2009, the Indian stock market was underpriced. It gave humongous return in a year. A good number of investment turned multi bagger in a span of 1-2 years.

Fairly priced market: PE >= 14 & PE <= 20

You can identify fairly priced market by looking at the PE once again. The PE ratio of 14-20 is a signal of fairly valued market. This is the time when most of the stocks are fairly valued. Hence the potential of price appreciation is less.

The best strategy in such a market will be to rejig your portfolio and assign 50% of your money in equity or equity oriented mutual funds and 50% in bonds and conservative mutual funds. There could be other option such as investing 100% in balanced funds. The balanced funds invest equal proportion in stocks and bonds.

Overpriced market: PE > 20

Overpriced markets usually have a PE in the 20s. The market is all time high and the fall is imminent. The question is not of if but of when. There will be temptation to ride with the crowd. However, you should act just the opposite.

Since the market is overpriced, the potential of price appreciation is very low. You should invest least amount in equity and equity oriented mutual funds. The proportion, in an overpriced market, should be 25% in equity and equity oriented mutual fund and 75% in bonds and conservative mutual funds.

In Dec, 2007, the Indian stock market was at peak with a PE ratio of 27. The market hasn’t reached that even 4 years from then. Investors who invested major portion of their money in that period lost a large part of their investment. The PE graph shown below is for the period between Apr, 2007 and May, 2010.

An interesting story about 'Financial Portfolio Allocation' by Nilesh Shah

ref: http://www.moneycontrol.com/news/market-outlook/nilesh-shahs-best-bets-for-long-term-returns-_541244.html

It's all about the game called 'Personal financial Planning' !

There used to be two bank General Managers. Lot of VRS were been given in banks then. So, both of these people took VRS and moved out. Let’s define them as Mr. Deshpande and Mr. Patel. Mr. Patel invested all his retirement money of Rs 30-40 lakh into 16% bonds and in those days debentures were giving 16% return, far more than today's 9.5%. On a Rs 30 lakh kitty 16% will turnout to about Rs 5 lakh and that was good enough in 1997. Mr. Deshpande actually invested in asset allocation principal - so something he put in equity mutual fund, something he put in fixed income and something he put in real estate in Pune.

By 2000 the equity mutual funds have delivered pretty good return courtesy the technology boom and the fixed income mutual funds also delivered good return because interest rate were dropping. Mr. Deshpande kept on moving from equity into fixed income through asset allocation principal. In 2001, markets crashed, obviously Mr. Deshpande lost lot of money but because he was shifting from equity into debt he didn’t lose money on the principal side, he lost money only on the gain said.

Come 2004 when the bonds came from maturity Mr. Patel 16% became 7%, by then inflation had moved up and on Rs 30 lakh instead of earning Rs 5 lakh he was earnings Rs 210,000 whereas Mr. Deshpande who was invested in equity mutual funds could still afford to earn more money as equity market started moving on.

Today Mr. Patel is actually looking for a job. I mean he is doing a part time job in order to supplement his income. His standard of living has come down dramatically whereas Mr. Deshpande because of real estate and equity mutual funds delivered good returns is still able to enjoy retirement life. So when you want to have the safety of fixed income, do remember that it will have a impact if it doesn’t keep pace with your inflation. It’s really tough after retiring as General Manager of a bank you want to do a part time job late in your life !

It's all about the game called 'Personal financial Planning' !!