Stock market crashes and hype
Tuesday, January 22nd, 2008Stock market crashes - seems the stock market bubble is bursting, most of it was media hype anyway. If your turnover or profits are not increasing, how can your company be so valuable?
I had seen first hand how big Indian companies are run, so I knew this was going to happen. I had invested some amount in mutual funds in 2001 when I had just left my job and had some money from leave encashment. The Sensex was below 3000 then. After that I have always invested in my own business, you have better control over the returns unlike publicly traded companies , where you may end up sponsoring exotic foreign junkets and a lot of other “official expenses”.