We r Average

Thursday, March 3, 2011

Posted by SAMEER DESAI at 9:57 AM

SAMEER DESAI: As long as I can remember, I have been fascinated by wealth creation via business ownership. Plants, machines, mega-projects, factories, services, consumption, research, manufacturing, competition, free-markets...all that goes into the making of a modern economy have stimulated me. This quest led me to an important question...how do I own all listed businesses or ‘aggregate enterprise’ of a country...automobiles, steel, telecom, FMCG, cement, oil & gas, power, two-wheelers, banks, hotels, textiles, software, metals, construction companies, pharmaceuticals...each and every piece...some kind of a multi-industrialist...! The answer is obvious-buy the market itself and hold it forever...via an obvious choice-passive indexing. My blogs are my thoughts about the logical method of owning enterprise of a country (or countries)-what I call ‘Capitalism in the aggregate’...read on...! This blog is my small contribution in helping Indian investors understand the logic behind the power of indexing-i.e. the power of 'market averages'-a simple, low cost method of participating in equities as an asset class.

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