Updated: Feb 17
Everything in this world has a value. Value is dependent on many factors such as need, utility, importance and many more. We as humans care for things we pay a price for. Its psychological. Majority of people work in the same fashion.
I usually quote " People do not waste even water if they have paid for it "
Most of us have experienced that we usually do not wash hands from a freshly purchased Bisleri.If ever we do we ensure its judicial use.
The same is with a pen. We hardly bother for a cheap pen. But if it is a premium one like Cross or a Montblanc just see how you place it.
You may ask how it is co-related to investment?
I have observed people hardly value a drab of money say a few thousand rupees.We saw its glimpse in Demonetization in the year 2016.How a small money can change things?
I am sharing a true story!
One of my friend's father was a LIC Agent living in a small village. He started investing in Share Market in early 1980's, when majority were unaware of the Stock market. During this timeline, odd lots were sold at a cheaper price(approx 20% less) than the market price. He used to buy 1 or 2 shares at a time (this is what I meant by 'odd lots') than sending it to the company and getting the same transferred in his name. In earlier days one had to get through a lot of hurdles like bad delivery, signature mismatch,keeping track of transfers, etc.
Some companies had a lot-size of 50 and some had 100. So after making a full lot sending again all certificates back to company and get a single certificate(lot). He told me his simple philosophy that whatever money he had in surplus he would buy odd lots of good MNCs and held them for long term. Usually he didn't sell his bonus by giving dividend paying companies and his initial investment was a meagre twenty -five thousand bucks. He would keep a low profile and lived simple. Always eager to meet good brokers and businessman to share and listen to their views. After few years investment started ripening. An article was published in Economic Times about him and how he made a fortune. One can understand by such praise about what he could make.
Mr. Babu Lal Bafna is no more with us. But his simple understanding of Value what you have keep enriching many including me. I had shared good time in discussions various topics with him.
I wish you also understand the Power of small money.
You might have heard a saying "bund bund se ghat bharta hai" He showed it to me how it works.
There are many other good stories on Value. Read them carefully and consciously.
Time is the most crucial element in life after life itself. You can never get a second back. So utilise your time intelligently.
Wish you a very satisfying and rejuvenating sunday.