Gold Update https://t.co/RzHJLtKMmR

More from Professor

Starting the Beginner’s Pathway thread for Fundamental Investing.

One Chadarmod on timeline posted that I’m giving gyan without having experience or expertise.

So I’ll begin with paying my portfolio performance tribute to these charlies.

https://t.co/GNM5SsNFNo


Fundamentals based investing can generate serious wealth as the most famous (rather infamous) Warren Buffett has shown.

In India also we have many success stories like @VijayKedia1 @Raamdeo R K Damani Rakesh Jhunjhunwala Late Chandrakant Sampat and many many more....

Though I can't stop mentioning that both Rakesh Jhunjhunwala and R K Damani were traders in their initial days.

Rakesh Jhunjhunwala still trades, he once said Traing is fun, its le fatafat, de fatafat

A lot of people (specially the beginners) buy stocks based on some friend's recommendation : XYZ le le, pukka chalega, maine bhi le rakha hai.

Few might have made money this way, but most do not. Why ?

There has to be a process.

Fundamentals based investing need thorough analysis of the Business & Company.

Here is a preliminary checklist by the legendary investor Peter lynch

More from Gold

90% of my savings were in equity, debt was never attractive! Last few months have taught me the imp of diversification!

Gold - through SGBs was my move on diversifying! Holder since Jan'20 - so far so good!

A🧵on talk given by @PositiveGamma on Investing in Gold!

(1/16)


Link to the here -
https://t.co/NxEkVKZi2H
MMTC PAMP is where Krishna worked before Setu and he was also responsible for launching Digi Gold at PayTM!

1) Why Gold?
1.1 Diversification - Volatility & Returns not tied to market conditions - diff. from financial assets.

(2/16)

1.2 Safe Haven - High value asset, easy to transport! Large value - limited space. Liquid and easy to convert to cash across the world.

1.3 Hedge against inflation and currency depreciation! (Depreciation of Rupee is a major factor behind Gold returns in India)

(3/16)

1.4 Upside in Tail Risk - Confidence in currencies & financial systems is low, gold can see upside in scenarios like this!

1.5 Upside on Demand/Supply - Constant Demand - Supply is stable!

2) Gold - Indian Context - Better returns compared to other asset classes...

(4/16)

... specially in the last 2-3 years. Gold has done well both in low inflation & high inflation returns. So both real (ex. inflation) & nominal returns have been good!

3) How much to Allocate?
3.1 Diversification/Inflation Hedge - 10-20%
3.2 Tail Risk/Safe Haven - 5-20%

(5/16)

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