Uncle Scrooge's Economics

Every time I write a blog, I strive to help readers connect with the content. Regardless of the topic, I want them to feel the same connection I experience while writing. Recently, I found myself struggling to come up with topics that evoke this feeling. While driving, I thought, "What is it that each and every one of us can relate to?" That's when it hit me: the one thing we can all connect on is the good old Indian traffic. Bharat is the fastest growing economy in the world along with its population touching 1.4 billion. However, this growth comes with its own sets of challenges, and one of the most pressing ones is traffic congestion.  As more people move to urban areas in search of better opportunities, the number of vehicles on the road has increased dramatically, leading to long hours of waiting in traffic. Urbanization is not about simply increasing the number urban residents or expanding the area of cities. More importantly, it's about a complete change from r

A son once asked his father why Jains are so wealthy. The father replied, "Beta, hum pyaj khate hain aur wo byaj khate hain," which translates to, "We eat onions, and they eat interest." Jainism, one of the oldest religions in Bharat, dates back at least 2500 years. Historically, communities that have emphasized their "minority" status have become a burden rather than a benefit to this country. However, the Jain community is an exception. Jains are among the most valued people to associate with. Adam Grant, in his book Givers and Takers , categorizes people into three types: givers, takers, and matchers. Matchers operate on a "you scratch my back, and I'll scratch yours" basis, while givers and takers are self-explanatory. Though Jains may not have read this book, they undoubtedly fall into the Givers category. No other community has contributed to the Indian economy like the Jains. They account for 24% of income tax contributions and 48% of

One person. That’s all it takes for someone to achieve what was once considered unachievable. History is full of such examples. Chanakya molded Chandragupt Maurya into King Chandragupt Maurya. Rishi Vishwamitra transformed his disciple Parshuram from a Brahmin into an undefeatable Kshatriya. General Sam Manekshaw's strategic brilliance led to the surrender of 93,000 Pakistani soldiers. Kapil Dev inspired India to win its first cricket World Cup. Arthur Howard helped Milkha Singh become the Flying Sikh. Narjit Singh guided Mangte Chungneijang into becoming Mary Kom. And JRD Tata mentored a young American architect, shaping him into the remarkable businessman we know today as Sir Ratan Tata. Our development is greatly influenced by the people we surround ourselves with. We tend to emulate their behaviors over time. Our first heroes are typically our parents. We don’t choose them; they shape our understanding of what’s right and wrong. Through them, we learn that dishonesty and arroga

We all have heard the ancient saying that goes like, "Every dog has his day." What it basically means is that every individual will be successful or lucky at some point in their life. You all might be thinking about that one day that changed your life, for better or for the worse. Likewise, I believe that every country has their own day or a year that changes their destiny. Personally, I believe that the year that changed the world economy was the year 2008. The aftereffects of the crisis were so abysmal that some countries are still trying to recover. It didn't just give economic trauma to the world, but it also gave emotional and psychological traumas, which is the reason why emerging market countries have such low stock market participants. Of 198 countries compared on the percentage change in GDP between 2007-2009, the most impacted countries were predominantly the Eastern and Northern European countries.   Out of those 198 countries, I personally believe that Iceland

This blog is a continuation of the previous one that I wrote inspired by one of the greatest treasures in my library, The Joys of Compounding by Gautam Baid, CFA. The book sheds light on different perspectives of life and how compounding is, has, and will always be the core of any activity that we undertake. In the previous blog, I highlighted seven lessons and will share eight more in this one. We Indians usually remember respective gods before we start a trip. This book is an adventurous trip in itself, and hence, remembering the gods of compounding before we start is a must. When Charlie was being interviewed by CNBC, he was asked how he liked the world would remember his. To which he replied, "A teacher and a learning machine. Most human beings die at the age of 25 and are buried at the age of 70. You might burry me, but I will always remain alive.".  What he meant when he said that most humans die at the age of 25 and are buried at the age of 75 means that people stop l

Being a book worm, I have come across many books that I thought were stupid buys but later turned out to be one of the best investments. But the book that I am going to talk about today was nothing like what I described above. This book was an impulse buy, knowing that it was going to be one of the best books I have ever read. You would hardly come across a book that talks about investments, knowledge, trading strategies, and life lessons with the same intensity and importance. Well, if you have authors like Gautam Baid writing books, you can expect the book to be a masterclass for value investors. The book that I am going to talk about has literally one thing that the author tries to relate to various aspects of life. That one thing, my friend, is what Einstein called the 8th wonder of the world. You guessed it. The concept around which the book hovers is compounding, and the name of the book is Joys of Compounding .  Apart from sharing love for investments, money, running businesses,