From My Diary - Rupee Falling

I read a peice written by Amey ( who is in USA ) in our yahoo grup link. I found it interesting as I read the responses from Milind, Viju, Aditya etc, and I could not resist the temptation to voice my views also. Here it goes :

I wrote to him :

I am not an economist or a chartered accountant like milind and Nitin to comment on this issue with authority, but I feel if you had en cashed your traveller's cheques even when the dollar was hovering at about Rs 45 a dollar, probably you would have not lost any thing. The inflation over the year or two would eat away your 6 % appreciation. However, I feel some times, just laying back and let the investment hatch proves beneficial too.

It happened in my case. After leaving Ranbaxy I got about Rs 7 L , some time in 90s, from PF, Bonus, Gratuity etc. Meena ( My wife ) wanted to put the money in FDs and such other stupid instruments ( my opinion those days ) . But, I told her very confidently, Leave this issue to me. I will double the money in less than an year. Those were the days when Harshad Mehta Scam bubble had not burst. She listened to me for once, and has now been repenting for last 25 years. I too lost my authority in the bargain, because now I have to listen to her on all the matters, like a true Pati ( Husband ). Any ways, the investment became dust paper value, when the bubble burst. I , rather she ( thankfully she did not listen to me ) allowed the investment to hatch. One year back the value on paper for the same investment was Rs 30 L , but again a notional value,as we did not en cash / exit in time. Today again, the notional value has dropped down to Rs 15 L. But, now I have decided to wait for the bull run, which may come again in a year or two. I am in no hurry, as I need it only after I retire, or for Anupama's marriage in a couple of years. So, I have decided to let it hatch , like you did, because I feel that appreciation in 2 years will certainly be more than the inflation hike.

It is a different issue that if I had invested the same amount in some instruments which double in 5 / 6 years ( NSCs and Kisan Vikas Patra - those days ) and kept on reinvesting the appreciated investment again and again , probably the picture would have been different. So, a lot depends on your judgement that time.

So, The Moral of the story is:

Allow some PROCRASTINATION in some important matters.

Please read my blog - http:// nerdynandu.blogspot.com , for some views on investments today. Now I have become a consultant on such matters after burning my fingers ( joke )