Kaju, Kismiss & the Dilemma

Hi

This is about a leading company, in India making innovative products and their latest innovation was a new machine.
It was called “The Rat killing Machine”.
Inline images 2
This is a very simple machine. The rat in search of the food comes to the position as shown in the picture.
It is drawn into the position by attracting with kaju (cashew)  at one end and Kismiss (Raisins) at the other end.
It turns its head, looks at Kaju and then Kismiss and when it does three or four times, its head moves against the blade and gets killed.
This company is a established firm and good sales team and launched the above market to be a pioneer and market leader. Initially the sales was very good and over the years, there were lot fo competitors who could produce this cheaper and the company was losing share.
The sales team wanted the company to make a low cost machine so that it can increase the sales based on the price.
The company did come out with a Rat Killing machine (Economy Version)
This machine is the same as the earlier version, except that there is no Kaju and No kismiss.
The rat comes to the same position as it is used and finds that there is no Kaju and No kismiss and like in the earlier case, after three or four times the rat gets killed.
Though this works on the principle that every one falls for a bait and given options, are in a dilemma and unable to choose one of the options.
We as investors are also perennially in a dilemma
Is it Kaju or Kismiss?
Is it a bull market or a bear market
Is it Kaju or Kismiss?
Should I buy or Sell?
Is it Kaju or Kismiss?
Should I buy Debt or Equity?
Is it Kaju or Kismiss?
Should I buy equity funds or Direct Equity?
If we keep pondering over the situation, we will always be in a dilemma and never invest.
Like the rat gets killed, the value of our money will get killed by inflation.
Dont try to time the market. Rather the time in the market.
We all know that
                              n
A = P ( 1+ r/100)
We constantly worry out r the rate of return than  n the no. of years.
A small “r” with a big “n”  will earn much more than a birg “r” and a small ‘n”
Inline images 3
Be different. Think differently.  You can create wealth.
Start your investments today. Do contact me.
Varadharajan VS
ckar.vsv@gmail.com
Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s