rule of 72

Going through an article on stock investments and the risks involved I got through this handy rule :-

If you want to know how longĀ it will take to double your money at any rate of return, simply apply the rule of 72, that is, divide 72 by the expected rate of return and the result is the number of years it will take to double your money.


Stocks: Harrisons Malayalam

I came to know about this growing plantations company in south india. Its a part of the reputed RPG group. Following are few good words by Roshan :-

It owns large plantations in South India, is part of the RPG group. South india is where I see property prices zooming in the future- it’s far safer and has a much better political environment as compared to the rest of India. The stock is trading at a P/E of 2.2 inspite of this being an asset heavy business. The entire business is worth about 150 crores. In my opinion based on land value itself it should touch 1000 crores in market cap soon and 3000-4000 crores in the not so distant future as the P/E rerates to take account of the underlying asset base.

Touch wood. Just bought a few stocks of the company. Website of the company is here. Details about Investors/Share holders is here.

First business: Bad Experience

Here I want to share the first and the only business I got into ever. I lost money. Lot of it (for me!). It was a sunny sunday morning when I read about making money sitting from home and I instantly ordered the education kit for the same. Among the many money making ideas were following :-

1 reading advertisements
2 reading mails
3 writing advertisements (similar to one that I read)
4 Publishing free ebooks (for making money) and earning through ads
5 affiliate

option 5 works. I did not try it since I do not have that much readership. alas.

I tried 1, 2 and 3. option 3 required me to advertise as well using Google Adwords. Initial signup with it gave $50 credit into the account for free. They took my credit card information. Way it works is that once your $50 is used up, they start charging your card. I did not know this.

I forgot about the Google thing, kept checking my account where money had to come and was happy to see that it actually was working. After one and half months, I got a call from my credit card bank that I need to pay a huge sum of money for the transactions made that was sixty thousand bucks in my currency. I was Shocked. I had to pay anyways. I was now depressed and doubtful for any payments as well. I immediately did the payments to the credit cars, cancelled the google account and cancelled the credit card as well. Few days later I got several cheques. So that was not fraud. My earnings were a total of Twenty four thousand bucks. A total loss of Thirty Six thousand.

A lot of learnings from this case :-

> Understand the business. Read the T&C
> keep track of accounts where you share your credit card information. This is cost.
> Advetisement is not expense, it is an investment.
> I did not get a single penny from reading ads and emails. They pay little per unit and hence accrution rate is dead slow. Can’t say in general but some companies are simply fraud.

Bad experience but I learned a lot of things.