Every time the SENSEX touches a
new high, newspapers publish the same old story – Retail left in the lurch,
Retail Investors not participating, Retail miss the bus!! ..Though media might
cite reasons like inflation, lack of government initiatives, lack of research
capabilities on the part of retail investors as reasons for their
non-participation, they fail to highlight the latest trend among youngsters
with fat pay pockets and high disposable incomes – Spending big time on
Gizmos!!
A small analysis was made by me and my firm on this topic. The launch date of various I Phone models over the last five
years was tracked and their launch prices were noted. Price of five blue chips
in Indian Equity Space – TCS, Tata Motors, HUL, HDFC and Sun Pharma was also
noted on the launch dates. These blue chips are well known and are either the
market leader or among the top 3 players in their respective domains (both at
the time of investing as well as at the time of this report).
Had a person invested in these
blue chips instead of buying the phone, the absolute returns that the scrips
would have generated as on Sep 30 2013 is shown in the table. The table speaks
for itself!!
I am not against buying gizmos!!
But a person should also pay attention to his personal finance!! He should have
a long term view, understand the importance of starting early to invest, invest
wisely and prudently!! Deferring smart phone purchases or buying a stripped
down version of it could actually make a huge difference to the retirement
corpus of an Individual!!
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