Wealth is the product of man’s capacity to think. Ayn Rand
Money is the only non-living thing which grows like anything. It cannot grow by itself. It is the human creative thinking which helps money to grow by leaps and bounds. In fact wealth is the product of human imagination. If you see the world’s richest men’s history, you come to know that it is their sheer imagination which creates enormous wealth for them. From time immemorial it is known that man can create huge wealth by his thinking capacity.
There are ample examples for wealth creation in western countries. By their thinking they create wealth and enjoy part of it and finally donate it back to the society. The best examples of our time are Bill Gates of Micro Soft, Warren Buffet of Berkshire Hathaway and George Soros of Quantum Fund. Warren buffet created huge wealth through stock market investment and became a 2nd richest man in the world. He was rich just because his value investment style.
But in India the situation is not so conducive for wealth creation. Here we cannot respect money and the society has no respect for wealth creators. Historically speaking, we cannot see our society worship the wealth creators.
Broadly speaking, Indians are good savers but poor investors. We have a wrong concept that both savings and investments are synonymous. But in practice they are different. Savings cannot grow rapidly whereas a fundamentally strong investment grows by leaps and bounds. In our Country only 2% of our household savings is invested in stock market. With a savings rate as high as 23%, India is a nation of savers, household savings largely going into Bank Deposits (43%), Provident Fund (18%), Life Insurance (11%), Small savings instruments (26%) and only 2% may go to equity investments.
NCAER-SEBI “ Survey of Indian Investor” of June 2000 reported that only 7.4% of Indian households invested in equity, either directly or through mutual funds. The comparable number for U.K. was 23% Canada 46%, Germany 18%, France 48%, Australia 50% and the U.S. 48%.
Indian economy was a caged Tiger due to various biased economic policies. Of late, our economy and stock market are booming. By careful study of macro as well as micro indicators influencing the economic growth in India, one can come to the conclusion that certainly India’s growth story will unfold in the coming years. And hence for a long-term investor who wanted to build wealth, it is time to look into stock market as a vehicle for wealth creation. At this juncture, one should invest in stock market to get higher returns compare to fixed income investments.
Money is a compelling force in our life and also most neglected segment of our life. It can be of vehicle for personal and social transformation. Money is seen as the means to various ends; it is not an end itself; of course, but you can’t do anything without money in real life.
The most unfortunate thing about Indians is that we want money but we are averse to talk about it in public. We have developed a kind of prejudice towards money. In a survey conducted summed up its observation that, “India’s biggest problem is complacency-and its willingness to settle for small gains. There is a distinct lack of enterprise”. It is a fact that we can’t live a day without money. If we go back to Indian history, there is no sign of respect towards wealth and wealth creators. Our society considered wealth creators as sinners for its own historical and cultural reasons. It may be because to discourage unethical way of hoarding. But anyway this kind of discouragement to wealth creation has done a lot of damage and thanks to this, wealth creation process suffered in India unlike western countries. In western countries they respect and worship wealth creators and due to that enormous wealth has been created in those countries. This kind of encouragement towards wealth and its creators wiped out their economic miseries and lead them to economic prosperity and economic freedom. We accept poverty as our karma, a way of life and pride to declare that in India, people living happily with poverty. How can poverty and happiness live together? It is just nonsense. It is worthwhile to take note of Manmohan Singh’s comment, “A society that respects those who create wealth is an achieving society”. Creation of wealth means not unethical hoarding, but that should be within the legal framework and with justifiable ways.
Thanks to economic reforms, Indian economy moved into growth trajectory and several new possibilities have been opening up to the new investors. And financial sector reforms in general and stock market reforms in particular opened up a plethora of opportunities to the Indian investors to participate in the journey of wealth creation. We should not miss this chance.
As a keen student of economics I think wealth is purely a product of man’s creativity. But in India much wealth has not created by human creativity; but for other purely non-economic reasons which is irrelevant to discuss here. It is need of the hour that we should learn to respect money, wealth and wealth creators which is very vital in transforming India into a developed nation. That is why Manmohan Singh rightly said that “A Society that respects those who create wealth is an achieving society”.
In western countries there is lot of literature about money, wealth and investment. Thousands together books were published on this subject. And everyone in those societies has training to manage money in their early part of life. But in India we don’t have any kind of wealth management education. You can rarely find a book on the subject barring some publications. We are living with scarcity mentality which leads us to pessimism. Number of western thinkers thought about wealth. But we used to get lot of thinking on philosophy and religion. It is obvious from this that Indians never bothered much about wealth. That may be the prime reason for our low standard of living
The simple definition of economics: study of day-to-day economic activities of common man. Everybody has their own economic life whether he is a billionaire or a beggar. A beggar has to calculate his income and expenditure to fulfill his unlimited needs with limited resources. Economics has tremendous implications on everybody’s life. But unfortunately we don’t understand about our economics. And we have a poor knowledge of economics and finance. As an economist by qualification I believe that it is my duty to take economics where it belongs, to the common people and see they should be benefited from economic knowledge. In fact I take this as a mission to spread knowledge of economics among my countrymen who are suffering from ignorance and poverty. Ignorance towards economics costs lot in one’s life. we have seen number of living examples of persons loosing their hard earned money in the name of chit funds and doubling. The only solution for this is we have to empower our people with economic knowledge and financial awareness.
There are no easy opportunities for an ordinary citizen in India to put their saving into equity market. To put it in statistics,98% of our people don’t know about stock market investing. They think equity investment is the toughest subject. They think stock market investing is like gambling. But in reality stock market investing is not a gambling; it is partly an art and partly a science. There is a cause and effect relationship between stock price and its real value backed by the assts of the company.
There is always scope for uplift our living standard. To uplift the living standard of middle class in India, the reasonable way, in my view, is to canalize their hard earned money and savings to stock market or any other prudent investment. So that they can earn much more than other available avenues.
We Indians lack the knowledge of economics, wealth and investment which is crucial as far as our standard of living and financial prudence are concerned. The ignorance of our countrymen’s financial knowledge leads directly to financial vulnerability. John Kenneth Golbraith once said. “Money is the measure of capitalist achievement”. To achieve this, one should have sound financial knowledge. To educate my countrymen through financial literature and create financial awareness is my mission and the prime motto.
There are ample examples for wealth creation in western countries. By their thinking they create wealth and enjoy part of it and finally donate it back to the society. The best examples of our time are Bill Gates of Micro Soft, Warren Buffet of Berkshire Hathaway and George Soros of Quantum Fund. Warren buffet created huge wealth through stock market investment and became a 2nd richest man in the world. He was rich just because his value investment style.
But in India the situation is not so conducive for wealth creation. Here we cannot respect money and the society has no respect for wealth creators. Historically speaking, we cannot see our society worship the wealth creators.
Broadly speaking, Indians are good savers but poor investors. We have a wrong concept that both savings and investments are synonymous. But in practice they are different. Savings cannot grow rapidly whereas a fundamentally strong investment grows by leaps and bounds. In our Country only 2% of our household savings is invested in stock market. With a savings rate as high as 23%, India is a nation of savers, household savings largely going into Bank Deposits (43%), Provident Fund (18%), Life Insurance (11%), Small savings instruments (26%) and only 2% may go to equity investments.
NCAER-SEBI “ Survey of Indian Investor” of June 2000 reported that only 7.4% of Indian households invested in equity, either directly or through mutual funds. The comparable number for U.K. was 23% Canada 46%, Germany 18%, France 48%, Australia 50% and the U.S. 48%.
Indian economy was a caged Tiger due to various biased economic policies. Of late, our economy and stock market are booming. By careful study of macro as well as micro indicators influencing the economic growth in India, one can come to the conclusion that certainly India’s growth story will unfold in the coming years. And hence for a long-term investor who wanted to build wealth, it is time to look into stock market as a vehicle for wealth creation. At this juncture, one should invest in stock market to get higher returns compare to fixed income investments.
Money is a compelling force in our life and also most neglected segment of our life. It can be of vehicle for personal and social transformation. Money is seen as the means to various ends; it is not an end itself; of course, but you can’t do anything without money in real life.
The most unfortunate thing about Indians is that we want money but we are averse to talk about it in public. We have developed a kind of prejudice towards money. In a survey conducted summed up its observation that, “India’s biggest problem is complacency-and its willingness to settle for small gains. There is a distinct lack of enterprise”. It is a fact that we can’t live a day without money. If we go back to Indian history, there is no sign of respect towards wealth and wealth creators. Our society considered wealth creators as sinners for its own historical and cultural reasons. It may be because to discourage unethical way of hoarding. But anyway this kind of discouragement to wealth creation has done a lot of damage and thanks to this, wealth creation process suffered in India unlike western countries. In western countries they respect and worship wealth creators and due to that enormous wealth has been created in those countries. This kind of encouragement towards wealth and its creators wiped out their economic miseries and lead them to economic prosperity and economic freedom. We accept poverty as our karma, a way of life and pride to declare that in India, people living happily with poverty. How can poverty and happiness live together? It is just nonsense. It is worthwhile to take note of Manmohan Singh’s comment, “A society that respects those who create wealth is an achieving society”. Creation of wealth means not unethical hoarding, but that should be within the legal framework and with justifiable ways.
Thanks to economic reforms, Indian economy moved into growth trajectory and several new possibilities have been opening up to the new investors. And financial sector reforms in general and stock market reforms in particular opened up a plethora of opportunities to the Indian investors to participate in the journey of wealth creation. We should not miss this chance.
As a keen student of economics I think wealth is purely a product of man’s creativity. But in India much wealth has not created by human creativity; but for other purely non-economic reasons which is irrelevant to discuss here. It is need of the hour that we should learn to respect money, wealth and wealth creators which is very vital in transforming India into a developed nation. That is why Manmohan Singh rightly said that “A Society that respects those who create wealth is an achieving society”.
In western countries there is lot of literature about money, wealth and investment. Thousands together books were published on this subject. And everyone in those societies has training to manage money in their early part of life. But in India we don’t have any kind of wealth management education. You can rarely find a book on the subject barring some publications. We are living with scarcity mentality which leads us to pessimism. Number of western thinkers thought about wealth. But we used to get lot of thinking on philosophy and religion. It is obvious from this that Indians never bothered much about wealth. That may be the prime reason for our low standard of living
The simple definition of economics: study of day-to-day economic activities of common man. Everybody has their own economic life whether he is a billionaire or a beggar. A beggar has to calculate his income and expenditure to fulfill his unlimited needs with limited resources. Economics has tremendous implications on everybody’s life. But unfortunately we don’t understand about our economics. And we have a poor knowledge of economics and finance. As an economist by qualification I believe that it is my duty to take economics where it belongs, to the common people and see they should be benefited from economic knowledge. In fact I take this as a mission to spread knowledge of economics among my countrymen who are suffering from ignorance and poverty. Ignorance towards economics costs lot in one’s life. we have seen number of living examples of persons loosing their hard earned money in the name of chit funds and doubling. The only solution for this is we have to empower our people with economic knowledge and financial awareness.
There are no easy opportunities for an ordinary citizen in India to put their saving into equity market. To put it in statistics,98% of our people don’t know about stock market investing. They think equity investment is the toughest subject. They think stock market investing is like gambling. But in reality stock market investing is not a gambling; it is partly an art and partly a science. There is a cause and effect relationship between stock price and its real value backed by the assts of the company.
There is always scope for uplift our living standard. To uplift the living standard of middle class in India, the reasonable way, in my view, is to canalize their hard earned money and savings to stock market or any other prudent investment. So that they can earn much more than other available avenues.
We Indians lack the knowledge of economics, wealth and investment which is crucial as far as our standard of living and financial prudence are concerned. The ignorance of our countrymen’s financial knowledge leads directly to financial vulnerability. John Kenneth Golbraith once said. “Money is the measure of capitalist achievement”. To achieve this, one should have sound financial knowledge. To educate my countrymen through financial literature and create financial awareness is my mission and the prime motto.
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