The Price of Greed
1) Ravi stayed 10 km away from his office
2) His drive to office took him 30 mins
3) His driver always drove carefully and anyone in the car would enjoy the drive while Shyamlal (driver) was at the wheel
4) Then one day Ravi was approached by another driver Tony who claimed to be an expert driver
5) Tony said he had been a part of a few local car racing competitions and had also some victories to his credit
6) He told Ravi that he could cover the distance between office and home in just 20 mins
7) Tony explained that if Ravi could reach office in 20 mins then why should he take 50% extra time for the same journey
8) Ravi got tempted at the prospect of 50% higher Returns
9) So he fired Shyamlal his old driver and hired Tony
10) But Ravi had no idea what was ahead of him and what he was getting into
11) Tony, his new chauffeur, would drive really fast taking several undue risks
12) Day in and day out Ravi was sitting with his heart in his mouth
while commuting to office
13) None of Ravi’s friends would sit in Ravi’s
14) But Ravi was driven by 50% higher Returns
15) And that Greed kept him going
16) Till one day, when Tony and Ravi met with an accident
17) The car was completely smashed
18) Both Tony and Ravi suffered injuries and had to spend months in the hospital
19) Ravi realised how lucky he was to be alive
20) He also learnt on that day the difference between experience and results
21) Ravi also realised that his investment style had been unidimensional & Returns oriented just like Tony’s driving
22) He immediately reconstructed his Portfolio by consulting a Money Coach who immediately diversified the portfolio and used the Asset Allocation and Rebalancing strategy
23) Now he started experiencing an Investment Experience and better sleep in the
nights
24) A Professional Money Coach like driver Shyamlal is one who not only provides a great experience by not taking undue risks but also ensures that Investment Returns are healthy and also at the same time sufficient
25) Ravi realised that reaching office 10 minutes late honestly made no difference to his work and moreover traffic several times l delayed him despite Tony driving him
26) The problem was Ravi did not look at the delay as 10 mins but as 50% extra time
27) Many times in investing we get carried away by % Returns without assessing it’s Absolute Impact and the Price of the Risk we assume
29) If Returns is the only measure of investment success then welcome to the world of Speculation
30) Best of Luck
