Earlier articles said to learn investing lessons from Dravid, now they are asking Dravid to learn the lessons!

No words are sufficient and do justice to Rahul Dravid’s conduct on and off the field. These guys (Laxman, Tendulkar, Sangakara etc) played the game in utmost spirit no matter what the pressures. Last few days have seen cricket slip to a new low  standard and one could have learnt a few things from these guys.

Anyways, this piece is less about cricket and more about personal finances.

When Dravid retired and even later, there were articles on how one should learn personal finance lessons from Dravid. See this for instance:

Investing for life is akin to playing a test match. You do not need to hit the fours and sixes. You do not need to score at a fast pace. You need to hang around. You need to keep the scoreboard ticking. The most important thing is not to lose your wicket. In terms of investing, you need to keep getting returns on your investment such that you do not lose � (1) the principal, and (2) your purchasing power.

Very often one gets overconfident. Even when it is not necessary, one tries to take risks. Very often, one forgets the goal and panics only to run away from risks. Both may yield unfavourable results for the investor.
Investing is really a battle against one’s own self. As the Dean of Investing said, The investor’s chief problem and his worst enemy is likely to be himself.

Thanks Rahul Dravid for reinforcing the belief that the first step to success is to focus on the goal and then concentrate on the job at hand. Any deviation would be harmful to one’s financial health.

 Recently, there was news on how an investment company has duped some investors including Dravid.

Now, we get pieces on Key money lessons for Rahul Dravid to learn:

Who doesn’t want to earn higher returns? Every rational person would want the highest possible returns. But every rational person must also realise that high returns come with higher risk. Former Indian cricket captain and now coach of the under-19 Indian cricket team, Rahul Dravid, discovered risk in his high-return portfolio. He recently lodged a complaint against Vikram Investment Company for cheating him of Rs4 crore. According to reports, the company had promised him a 40% return on investment. The company, Vikram Investments, has allegedly lured high-net worth investors with offers of 40-50% annual returns on their principal.

Dravid should have paused at this number itself. A 40-50%-guaranteed return is a red flag. No wealth management company or financial planner can assure such a return. “Usually, it’s not possible to get such a return. The thumb rule should be: as your returns go up, no matter who is saying what, the risk has to go up,” said Abhay Aima, group head-equities, private banking, third-party products, NRI and international consumer business, HDFC Bank Ltd.

How the tide has turned!

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 )

Google photo

You are commenting using your Google 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 )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.


%d bloggers like this: