We, in a socialist economy as well as in a capitalist economy, keep on wondering about the distribution of income across the economy. Despite all efforts, the income inequalities are not eroded. The poor are getting poorer and the rich are getting even richer. Here we will not discuss much about the sociological aspects or pure economic aspects of this difference. Rather, we will look into what are the behavioral patterns that make the rich even richer? What are the investment strategies that enable them piling wealth??
Our simple question is: “The rich are getting… even richer. How?”
And our simplest answer is: “By abandoning the market and going elsewhere.”
For example, Mahesh Dattani, a family-business owner in Gujarat (India), was dissatisfied with the returns he was getting from his stocks. So instead of doing the same old thing and hoping for better results, he found a better place to invest – and exploded his gains.
In fact, he made over Rs. 1.5 million in what I call the “rich man’s market.”
But here’s the thing: You don’t have to be rich to do what Mahesh Dattani did.
If you’d known what Mr. Dattani knew, you could’ve exploded a small stake 15 times – turning even Rs. 50,000 into Rs. 5,00,000.
Courtesy: This write-up is based on an article posted by the Investors Daily Edge (IDE).
Filed under: Behavioral Finance |