High taxes everywhere: where to invest post BUDGET? Macroeconomics | Akshat Shrivastava
Summary
TLDRIn this video, Akshat Srivastava discusses the impact of recent budget changes on investment strategies. He outlines six to seven points to adapt his investing style, including shifts in gold, stocks, and real estate investments. He emphasizes the importance of long-term investing due to increased short-term capital gains tax, and the need to focus on assets with potential for appreciation. Akshat also highlights the significance of understanding macroeconomics and segmental inflation for informed investment decisions.
Takeaways
- 📈 The recent budget changes have a significant impact on investment strategies, pushing towards long-term investing over short-term gains.
- 🏦 Akshat Srivastava, an investor and hedge fund practitioner, emphasizes the importance of understanding macroeconomics for informed investing.
- 📊 Tax rates for short-term capital gains (STCG) on listed stocks have increased from 15% to 20%, affecting profit margins and investment decisions.
- 💼 The speaker suggests focusing on long-term investments in assets like stocks and real estate, given the new tax implications.
- 📉 The reduction of customs duty on gold from 15% to 6% by the government is aimed at lowering the price of gold, impacting sovereign gold bond holders negatively.
- 🏠 The withdrawal of indexation benefits and changes in long-term capital gains tax (LTCG) for real estate suggest a shift towards property trading rather than long-term holding.
- 💡 Investors are advised to consider tradable properties that can add value and be flipped within two years to benefit from the reduced LTCG tax rate.
- 🌐 International diversification is recommended for investors with significant wealth to protect against currency devaluation and to seek better investment opportunities.
- 🔑 The importance of investing in unlisted companies before their IPO is highlighted as a potential source of high returns.
- 💼 The speaker shares his personal investment philosophy, which includes a preference for contrarian investing and value addition in properties.
- 📚 Akshat offers courses for those interested in learning about stock markets and real estate investing in a structured manner.
Q & A
What is the main focus of Akshat Srivastava's video?
-The main focus of the video is to explain the changes in the budget and how they impact investment strategies, including the author's personal adjustments to his investing style across different asset classes like gold, stocks, and real estate.
What does Akshat Srivastava suggest about short-term capital gains (STCG) on listed stocks?
-Akshat Srivastava suggests that the STCG tax rate has increased from 15% to 20%, which is a 25% change in profit margins, indicating that short-term stock investing is less attractive and pushing investors towards long-term investments.
What is the change in the long-term capital gains (LTCG) tax for gold according to the budget?
-The LTCG tax for gold has been changed from a slab rate to a flat 12.5%, which may affect the attractiveness of gold as an investment option.
Why does Akshat Srivastava recommend long-term investing over short-term trading?
-Akshat Srivastava recommends long-term investing because the new tax rates make short-term trading less profitable, and long-term investments are generally more aligned with the current economic policies and tax structure.
What does 'segmental inflation' refer to in the context of the video?
-Segmental inflation refers to the different rates of inflation experienced by different segments of the population, such as those living in cities versus rural areas, which can affect the real value of investments and savings.
How does the change in indexation benefits affect real estate investment?
-The withdrawal of indexation benefits means that the cost of inflation is no longer considered when calculating capital gains on real estate, potentially making long-term holding of properties less attractive from a tax perspective.
What is Akshat Srivastava's view on investing in gold?
-Akshat Srivastava suggests that if one has to invest in gold, it should be in physical form due to issues with purity and quality control in India. However, he personally does not invest much in gold as he has other hedges like bitcoin and real estate.
What are 'tradable properties' as mentioned by Akshat Srivastava?
-Tradable properties are those that can be bought, improved, and sold within a short period to take advantage of the reduced LTCG tax rate of 12.5%. Examples include properties that have been renovated or converted into income-generating assets like Airbnb listings.
How does the budget impact investment in unlisted companies?
-The budget does not directly impact unlisted companies, but Akshat Srivastava suggests that there may be opportunities for significant returns in pre-IPO markets, as private company wealth is often realized through public listings.
What is Akshat Srivastava's stance on international investing?
-Akshat Srivastava sees international investing as a valuable strategy, especially for those with significant wealth, to protect against currency devaluation and to take advantage of market opportunities in other countries.
Outlines
📈 Introduction to Investment Strategy Changes
Akshat Srivastava introduces the video, highlighting significant changes in the budget that have prompted a reevaluation of investment strategies. He outlines his intention to discuss six to seven points on how these changes affect different asset classes, including gold, stocks, and real estate. Akshat positions himself as an investor and educator, mentioning his courses, his presence in Dubai studying the real estate market, and his experience running a hedge fund. He emphasizes the importance of understanding macroeconomics and provides a brief on tax changes affecting short-term and long-term capital gains, particularly in stocks and gold.
🏦 Impact of Tax Changes on Gold and Real Estate Investments
The speaker delves into the implications of the budget on gold investments, explaining the difference between physical gold and sovereign gold bonds (SGBs). He discusses the tax changes that have made SGBs less attractive due to a reduction in customs duty on gold, which affects the maturity returns of these bonds. Akshat also addresses the segmental inflation in India, which is higher than the national average and impacts the real return on investment. He suggests that physical gold might be a better option than SGBs due to the government's ability to manipulate gold prices, and he shares his personal stance on not investing in gold due to other hedges in his portfolio.
🏠 Real Estate Investment in the Wake of Policy Changes
Akshat explains the new taxation policies affecting real estate, including the withdrawal of indexation benefits and the reduction of long-term capital gains tax from 20% to 12.5%. He illustrates how these changes impact the assessment of property values and the tax liabilities of sellers. The speaker suggests that while long-term holding of properties is not encouraged under the new policies, there are opportunities in trading properties that have added value, such as renovated properties or those converted into Airbnb units. He also mentions his real estate course, which covers various aspects of property investment, including international markets.
📊 Stock Market Dynamics and the Shift Towards Unlisted Investments
The speaker discusses the impact of the budget on the stock market, particularly on listed and unlisted stocks. He points out that while the increase in long-term capital gains tax from 10% to 12.5% might not crash the market, it could lead to a reevaluation of investment strategies. Akshat suggests that the pre-IPO market may offer better opportunities for wealth creation and that he will be sharing more insights on investing in unlisted companies. He also touches upon the potential benefits of international investing, especially in the context of currency devaluation.
🌐 International Diversification and the Future of Portfolio Investments
In the concluding part of the script, Akshat emphasizes the importance of international diversification in one's investment portfolio, especially for those with significant liquid wealth. He discusses the devaluation of the Indian currency and how investing in international markets can serve as a hedge. The speaker mentions his interest in US tech companies and the potential for investment in the Nasdaq market after recent corrections. He also hints at sharing more detailed commentary on international investments with his member community.
Mindmap
Keywords
💡Budget
💡Investing Style
💡Macroeconomics
💡Short Term Capital Gains (STCG)
💡Long Term Capital Gains (LTCG)
💡Indexation Benefits
💡Segmental Inflation
💡Sovereign Gold Bonds (SGBs)
💡Unlisted Stocks
💡Tradable Properties
💡International Diversification
Highlights
The budget has significantly changed investment strategies.
Six to seven points will be explained on changing investing styles, including gold, stocks, and real estate.
Introduction to Akshat Srivastava, an investor and hedge fund manager sharing his insights on global investment.
Major changes in taxation for listed stocks, with STCG increased from 15% to 20% and LTCG changed from 10% to 12.5%.
The impact of these tax changes on profit margins and the push towards long-term investing.
Discussion on gold investment, with a shift in LTCG and customs duty affecting Sovereign Gold Bonds.
The concept of segmental inflation and its effect on investment returns, particularly in India.
Analysis of EPF and PPF rates in the context of inflation and their diminishing attractiveness as investment options.
The importance of long-term investing in assets and the disadvantages of short-term trading.
Real estate investment advice, focusing on the impact of withdrawn indexation benefits and increased transaction frequency.
The distinction between tradable properties and their potential for value addition and short-term gains.
The potential in unlisted stocks and the benefits of investing in pre-IPO markets.
The shift in focus from long-term property holding to short-term trading for tax efficiency.
International investing as a strategy to combat currency devaluation and the importance of diversification.
The importance of understanding nuanced investment insights over general advice for better returns.
Akshat's personal investment strategies, including his approach to buying during market panics and the benefits of contrarian investing.
The video's conclusion summarizing the overarching thesis on investing in the current economic climate.
Transcripts
Hi everyone. Welcome to today's video. So this budget was extremely pivotal. It has significantly
changed the way one should invest. On this video, I'm going to explain why I using six,
seven simple points as to how I am going to change my investing style.
Whether I'll be investing in gold, whether I'll be investing more in stocks, whether I'll be buying
some real estate or not. So I'm going to give you point wise answer and help you understand the
macroeconomics behind things for people who are new to my channel. My name is Akshat Srivastava.
I am an investor. I spend a lot of time studying the investment world all across the globe.
I am currently in Dubai. I am studying the real estate market right now. I will share
my learnings with all of you. Also, if you are interested in learning about stock markets in a
structured manner or real estate in a structured manner, then you can definitely check out some
of my courses. I also run a hedge fund, so I am a practitioner, industry practitioner.
I practice what I teach. I also reveal my p and l every year. So this has been revealed
in my member community. So this is a basic background and without wasting any time,
let me jump directly into the topic. So the first key important slide that I will show you is this.
This is very, very important. This pretty much presents a comprehensive picture of where major
changes have come. For example, when it comes to listed stocks, up stocks. So two major changes
have happened here. That earlier STCG short term capital gains was 15, now it has increased to 20.
LTCG has also been changed from ten to 12.5. Now, some of you who are new to the stock markets might
think it's only like 2.5% increase in taxes. Okay? So that is just one way of looking at
it. Basically what has happened is this is 25% change in your eventual profit margins, right?
So this is how it is, right. So there is nothing that you can do, right. Similarly,
other key changes have also been made. For example, gold may, the LTCG has been changed
from Slab to 12.5. Similarly, in physical real estate, a lot of questions are coming.
Should you buy real estate anymore? It just looks pointless. Indexation
benefits. What is indexation benefit? I'll explain in a minute, but yeah.
Okay, so let me present a very high level picture first. Then I will go asset wise.
See two very important things that you need to keep in mind. First key thing is that,
see short term STCG, 20% slab, right? 20% slab at least 15%.
Now this is very very high. Okay, now, short term simply means that, for example, if you buy,
let's say rs100 worth of any asset, be it gold, be it real estate. Real estate. Maybe
now, but assume 100 units purchase that you have done on stocks, real estate, bonds, etcetera.
And if you only hold it for twelve months or less, then you will be subjected to very high
taxation. So as a smart investor, the first key takeaway that you should have is very simple.
That please only invest in assets where you can do long term investing. Now, real estate may be. Yes,
there is a slightly different approach there, which I will explain subsequently on the video.
But generally speaking, long term investing is what is being, what we are being pushed
towards. This is my first key takeaway. Trading, trading, even swing trading. I mean,
this has just killed the short term stock investing. It just does not make much sense.
Okay, so this is what I will simply say, right? And this is the number one point
that please do long term investing. Very, very important, right? The second key point
that I want to highlight is the fact that, see many instruments. If I take a look at,
for example, if I take a look at debt mutual funds or ETF, it's my FDS.
A lot of people invest in fds. So now see, guys, basically this is, this,
you are charging slab, okay? And government bonds right? Now here.
If you actually check the data, in 2024, EPF, PPF rates, 8.1%.
If I'm not mistaken, back in 2001, this was around 9%. Okay? What is happening is that in 2001,
right now, inflation has actually gone up quite a lot, right? In fact, inflation
has gone up so much that the government has stopped giving indexation benefits,
which is actually tied to inflation. Trying to tell you is that we are
living in a world where segmental inflation in India is very high.
Now, what is the meaning of segmental inflation? I've explained in my, some of my previous videos
also. And now people are catching up to this concept. Segmental inflation very simply means
if someone is living in a village, then the inflation for them might be very,
very different from the way inflation will work for you. If you're living in a city,
for example, if you're living in a city, you would be using petrol more, right?
You would be sending your kids to private schools, you will be buying things from supermarkets,
you will be paying rent, right? Very high. If someone is living in a village,
most likely they might have their own house, they might be doing their own ktwadi, etc. Etcetera
the inflation data, Japna, CPI inflation. That data is the national level data.
That is the aggregate data. If you are someone who is able to understand english language,
right, and are living in a city, most likely the segmental inflation for you,
for your segment will be easily nine to 10% in India. Okay? It is
not what the government claims, right? This is pretty much nonsense, right?
And the reason why I'm telling you is that, see, there are certain instruments, for example, PF,
EPF, all that stuff. And if they are giving you only 8.1 tax efficiency, and this is not a growth
instrument anymore, right? That is a simple point. I am saying. Am I saying that stop doing PF EPF?
No, that is your call. Do whatever you like. All I'm simply trying to
tell you is that if you're putting money in PF, EPF and all that,
then the primary issue that you will face is that this is not where wealth is growing.
It's not. It's like 8.1% return. Your segmental inflation is easily nine to
10%. Now please understand that. Please accept and acknowledge that reality.
So these are two primary points that I will highlight. Now let me go section by section
and let me explain about different asset classes. What is actually happening? What,
why some of the changes were made on the budget, how I am reorienting my investing
style if I am doing anything on those assets. So gold, honestly, I don't buy much gold.
But in the past there was a lot of interest in sovereign gold bonds.
Now finance is made so complicated for the normal janta, right? How is that? Like,
you know, SGB returns money. It's just complicated.
So let me break it down for you. What is actually happening? There are two,
three things, right? So one is that basically there are like two types of golds. And please,
all these are very, very important macro points.
No one is going to tell you this, right? So I am making a genuine effort in terms
of teaching you all this. Okay. Now see, in India you can buy gold in two
formats. One is physical format and one there is sovereign gold, bond.
All the other forms, jewelry form, may and all that are like, you know,
pretty inefficient. Because if you are buying it in jewelry format,
then there will be making charges, etc. Etcetera. So these are your two options.
Primarily that you buy it in physical format and then you, or you buy it in SGB.
Now, SGB was selling, in fact, 2015 say SGB was introduced. And Bhati is basic
breakdown in SGB versus physical gold. One primary difference was there,
in fact there were many. But one primary difference was that there was a lock in. Right?
So lock in, if you put it in SGB, which is sovereign gold bond. Okay. Then you
have to lock your money for five years, right? This is a, this is called as holding period,
right. And in physical gold, for example, in 2015, you chose to buy, let's say 100 grams of gold.
There is no lock in, right. If you want to sell it in 2016,
you could have sold it. In 2017, you could have sold it. In 2018
you could have sold it. So there is no lock in per se market rate, right.
Governments are tax efficient on all that stuff. People got very excited and a lot of money started
flowing from physical gold to SGB's, right? Basically. And lakhtaar ketcha tax benefit. So why
should I not buy sovereign gold bond hold, and gold appreciation.
So I'm going to get it. Okay, so that's a very good theory. Okay. If appreciation happens,
then I'll get my returns. Now when do you get returns on sovereign gold bond?
Right. So you get returns on sovereign gold bond. Practically speaking, when these bonds mature,
because up maturity pay, you will be able to exit it. Very similar to how FD garate. Again, if you
break the FD earlier, then there are a lot of losses that you have to undertake.
So similar was the case story here with sgvs. Right. Now what has started to happen is that,
see the holding period was eight years for this. So 2023 end was holding period part,
was the absolute minimum. So holding period was fairly long.
So basically majority of the repayments of this bond, that is the maturity of the bonds,
will happen now. Right? What government did in this budget
is that basically they cut down the customs duty on gold from 15% to 6%.
Customs duty from 15% to 6%. What were they trying to achieve with this? Well,
what they were trying to achieve with this was that they were trying to reduce the price of
the golden. Now why were they trying to reduce the price of the gold? Well, again, very simple,
because your repayment oga, that will be as per the current gold price plus a certain alpha on it.
So by playing around with this 15% to 6% slab, they have successfully reduced or
they will successfully reduce the price of the gold by 9%. Okay, so now this is a loss for
SGB holders. Now physical hold may be price. So again, let's go back to that example that
if you were having 100 grams of gold in 2015, was there any obligation for you to hold it till 2023?
Maturity 2023 point artificially, the price of the gold when it was time to repay the bondholders.
This is exactly the point that I made earlier. Also that. See guys, there are two types of
assets. One are called as real assets and one are called as paper assets. Right?
Now, real assets are actual products. For example, if you buy real estate, real real estate, land,
something that is a real asset. If you simply go and buy reits, that's not a real asset. Bond is
nothing but a promise of repayment, right? And actually just a hazar ka note, jabandu ata 1000
rupee note ban and all that stuff, then that's a promise that is void.
In fact, if you zoom in on this 1000 rupee note, the RBI governor has signed it saying that hey,
we promised to pay the bearer a sum of rs1000, right? I mean you have to go waste your time
then time and all that stuff. So there is a reason why us has never banned its own note. So anyways,
leaving that discussion aside, the larger point that I was trying to
make was very simple. That see this bond price is controlled pretty much by the government.
By making these type of changes which they made, they can keep the price of gold artificially
low when the time comes of repayment. So if you are someone who is looking to buy gold,
please buy it in physical format, right? It's legal to buy gold in India up to a certain limit.
So that is the reality of it. And gold is used for hedging.
So do not buy it in crazy amount. So that is a simple format in which you
should do. And this is something that I have been saying over the last one year.
Invest myself in gold. The short answer as of now is no. The reason
is that I have other hedges. For example, I invest in bitcoin. I invest in real estate.
So these are like limited supply assets that I anyways pick. So there is no need for me from
a portfolio level to buy gold, right? So this is my viewpoint. And in India, there are issues
with like gold purity and all that stuff. If you speak with your jeweler friends, they are.
This is something that they are going to specifically tell you,
right? You don't need to take my word for it. You go and speak with jeweler friends,
not jewelers. Okay? So they themselves will tell you that.
Okay, you know what? Now many of you will say that is not my job, right? I cannot like you
know, my quality control is not something that Akshat can do, right? Quality control
is something that the government should do. That is not the power that people have vested in me.
And I cannot do that. I can simply educate you about the existing options there. So therefore,
I will not invest in gold. Or if I have to invest in gold, I will
definitely buy physical, right? So this is one.
And this is like a very quick chart about when the sovereign
gold tranches were released and when are they set to mature. Okay. Now comes the
second asset class stocks. The second asset class is real estate. Right?
So real estate, because a normal thought process, a real estate.
See, two major changes have happened. One is that indexation benefits have been withdrawn. Now, what
is indexation benefits? I'll explain. An LTCG has been cut from 20% to twelve and a half percent.
So, yeah, tax, come over. This is very nice. Right? And. Right.
So, okay, so let's understand it that what type of real estate you should purchase now. So,
okay, what is the meaning of indexation? Indexation simply means that let's say
that you purchase a property in 2020, right? And the property value is one crore. Okay?
20. 212-022-2023 and 2024, right? So these are four years that you're
holding the property. Now, Manke Jaloki, in the economy, inflation is 6%. Last year we
in 2021 also inflation was 6% here also is 6% here also 6% here also 6%, right?
This property is assessed and as per inflation, you know, 1234. So 24%
inflation to Seogya, property value k three, at least 1.24. That is the value of the property.
Because the cost keeps on rising. So therefore, this is what the value should minimum be, right?
Or the assessed value. you sell this property in 2024 at 1.5,
right? 1.5 cr. So differential, get Taya. So the differential is 26 lakhs, right?
So 1.5 -1.24 which is equal to 26 lakhs. So is pay apki tax liability banti, which was
20% before. Now what the government is saying is, it's very simple.
Six. Six. What we are going to consider is 1.5 you sold. This is what you purchased,
one cr. And the amount on which you will have to pay capital gains is 50 lakhs is 12.5%, right?
So this is the mathematics. I am not going into finer details. I am explaining it with
the ease of understanding. Not like, you know, giving you accurate like ca type gyan. Okay.
But I hope you got the complicated concept of indexation and yago koi vatagani. And this is
where I come in. And of course I'm going to tell you what is actually going to happen. There are
a couple of tweets also that I've done on this topic. In case you are interested.
You can read more details, but short. Okay. So basically what happens is that in India,
the stamp duty on properties is on at least luxury properties. It's 9%.
Depending on the state, it might be little bit less, but let's assume 9%.
Now, when does the government make this money? Well, when you are buying a house,
right? Let's say you will pay 9% and that's it, right? And then you might hold this house for
the next 50 years, right? So how much money did the government make over a period of 50 years?
Property tax. So they only made like 9% government.
Okay. Right. Okay. What we can do is that we can push people to maybe sell this house,
right? And every two, two years people start selling the house.
So you have a 1.1 crore apnea. 9%. Right? Apnea Malo 1.21.3. After two years,
then this person also paid like 9%.
So basically what has happened here is that the frequency of transaction of property has
increased and this is bringing more and more money for the government. So government's
focus has been here, right? You don't become investors in properties,
okay? What you do is that you trade on properties because up trading,
that is when we are going to make money. But if you are someone who buys a house, right,
and holds it for 50 years, and then they will have to pay a crazy amount of taxes on it, right?
As per the current norms. So this is the situation. Long term,
investing in real estate is not something that has been encouraged. Short term
trading on real estate is what is being encouraged. This is the game plan right?
Now, does that mean that real estate market is dead or is it a bad investment? The short
answer is absolutely not. Real estate now becomes a very good investment. But if you
know what you're doing and this is something that people will typically not teach you. Now,
I do run a real estate course in case you guys are interested.
I teach everything from scratch, right? From financing, scouting properties,
how to analyze properties, international properties, all that stuff. I personally
go visit a lot of international destinations. Thailand, Dubai uploaded and now I'm going to
talk about Istanbul market also. In fact, Dubai upload over iv, right?
I'm here in Dubai. I'm shooting more videos. So I'm going to explain all that on my course.
So in case you guys are interested, you can definitely check it out. So, okay,
so coming back to the topic, the game that is going to happen is trading on properties.
Now, how exactly are properties traded? Because bolinge gets a 9% stamp duty
kara gap trade. Karogi, a builder. But now the thing is very simple,
right? Basically what people are going to do is that they are going to acquire a property.
Acquire a property. They are going to add value to that property. And then as the long term capital
gains hit, they are going to flip it, right? Because the property tax has been , the capital
gains on properties have been reduced from 20% to 12.5%. So if you find tradable properties,
those are exceptionally good properties to own right now.
Now, what is the meaning of tradable properties now? Tradable properties,
for example, people typically say, you know, under construction. complete. But
you buy it and then you flip it because price. Bharajati.
Now, why does price go up? Because value is being added. It has moved from being uncompleted
to a completed unit where the uncertainty has gone out. Right. Renovated properties.
Property. Karidi, renovate Kara. Right. And then you sell it off. Right.
Within like two years. Right? So that is value add. You convert something into an Airbnb,
so that becomes a value add. All these are value added things and
that increases the trading of properties.
Now, this is something that I'm going to cover more on my course. I am going to
add more details to this entire strategy. But these are the type of properties that you need
to buy. If you're buying random properties, you will lose money, like anything on this,
both by buying exceptionally high rate properties from builders and on top of that,
losing money because of taxation. Okay, so now it's not buy and hold game on properties, right?
This is probably the only exception where long term investing is not encouraged anymore. Okay,
so now comes the third category, which is stocks, right? Stocks. There are like,
you know, two types of stocks that we can speak about. One is unlisted stocks, right?
Unlisted stocks. And listed stocks. Now listed. The ones that you and I trade on. NSE BSE.
Right. And Zerodha coin app and all that up. Stocks. And, you know, all these Dunya Vargi apps
use Karger. We only buy, like, companies like ITC and, you know, HDFC bank and all that stuff.
So these are listed companies, right? Unlisted companies. Kyoti just a for
example, Swiggy. Now, Swiggy is an unlisted company, right? It will.
It is. It will launch its IPo, right? Once its IPO is launched, it becomes a listed
company. Now where is the benefit now, right? I would say that pre IPO market is favorable.
A lot of private company wealth will go, right? So this is one major change that will happen,
right? IPO Ke bar, this company that is listed, it's not as if that stock market will crash or
something because the taxation moved from 10% to 12.5%. But what is going to happen
are two major changes. One is that, see, fi is are going to analyze their positions.
Key, do they really need to go through this higher taxation? Are there other
better markets? But indian government has already made DII is very strong.
So DIis go to India, we invest, right? They are anyways going to pay 12.5% and that's it.
So indian stock market, is this a good move? Absolutely not. Now why am I saying it? Because
in India, like 5% people invest in equities, right? Majority money goes into problem.
Money actually started moving from fds to stock market. So again, you have just delayed
the growth or rather like, you know, sort of put barriers to the growth of this number. It's not
as if that this number will not grow. This will definitely keep on growing. Because you know,
you ultimately need to beat that segmental inflation of 910 percent and FD's.
Do not beat it. You pay like crazy taxation. tax. So there is no other
option for most people but to invest in mutual funds. Listed companies.
This is the primary go to thing. But I think that a good alpha lies here,
right? In unlisted categories. How to invest in unlisted stocks. I will start
releasing some commentary from tomorrow on my member community.
Also, I will explain how I am investing in unlisted companies like Swiggy, HDB financial,
etc. Etcetera. So commentary. But I just simply wanted to touch upon the fact that
this is where alpha lies, right? So there is a good chance that growth will come from here.
Not necessarily here. This is already a little bit bloated as of now. So if
I have to put in new money, how will I exactly put right? I mean,
I'll put the entire video together. So there are three, four key points.
Okay. So if I have to do sip, I will continue to do it in listed space. No problem. Listed space,
not an issue. If I'm looking for like two x, three x opportunities, I will go for unlisted space.
This is again very, very interesting for me. Number three point. If I have to do
bulk investing, right? Bulk investing, I will go and buy tradable properties,
right? So this is again a very important aspect.
Because contrarian. Unless you are contrary and you will not make money. There are people
who made fun of me. Oh, apnea. Goa invest, karadiya, this, that stuff.
Why those investments have grown like crazy. Now there is interest in Goa, right? But when I was
investing, there was hardly any interest in that point in time. Whatever investments I had made,
they have given exceptionally good returns. In fact, even better returns than stock markets.
The point I am trying to tell you is that people make money by understanding nuanced,
insightful points, not by general general staff. Equity.
Equity. When no one was buying like in 2021, panic. 2022, panic macha wata.
You go and check my videos. I was buying like anything,
right? And that resulted in good gains. Now in 2024, we are looking
at a stock market all time high. Now this is not a bulk buying opportunity.
So please notice the word bulk buying. Okay? Sip. Yes, very good. You can continue to do it.
Not a problem. In fact, right now I would rather say that Nasdaq or international
investing is much better or has become more lucrative. Now Nasdaq has corrected quite a
bit. Some good stocks like Google. Commentary on my member community.
Also that Google itself is corrected by 9% in a month,
right? So which is a fairly big fall and it's a good aggregation point. I will also
talk about other tech companies in the US that I'm looking to buy. So international investing.
International investing is something that I am building my portfolio on.
I will aggregate or build more of my positions here. This is very important. Now why is this
important? Because at the end of day, we should not forget the fact that our
currency is getting devalued quite a lot. For example, take a look at this chart.
When I went to insead at that point in time, US dollar was like 60. Now it is at 84,
right? And roughly correction, 35 40 odd percent correction has happened.
It's lot of currency devaluation has happened. So in order to protect that,
you need to build like a slight international oriented portfolio.
This is specially applicable for people who have more than let's say 50 lakh worth of
liquid wealth. You should start looking at little bit of international diversification
even if it is not very tax friendly. This is something that I teach on my courses. Also,
it is hard to give public advice on this, but there are tax efficient
ways of investing internationally. So that is something that you need to understand.
So, yeah. So this is my broad, macro overarching thesis of investing. I
hope you enjoyed the video. If you did, do press the like button and I'll see you soon.
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