Money-making magic

Government companies are like the government's piggy banks. They tossed in some cash a while back, and now it's grown into a financial Godzilla over the years. Whenever the government finds itself in a pinch, it simply sells a piece of the pie.

Cue the current spectacle with Coal India!

The government plans to offload a measly 3 per cent stake for a mind-boggling Rs 4,200 crore! Talk about the magic of compounding. It's like they took a crash course in money-making from the government folks. And that's not all! The government also gets a sweet bonus every year in the form of dividends. The amount of moolah they rake in from selling shares and pocketing dividends could easily put the market cap of several companies to shame. So, here's the golden lesson: invest now, and sit back to reap the rewards later. Who would've thought we'd be taking financial tips from the government of all people? Hats off to their money-making prowess!

We aren't against taxes or anything but when you see that you have to pay 10 per cent of your gains as taxes, it does hurt a bit, doesn't it?

Capital gains is good, great in fact. But do you know how great can become fantastic? When you reinvest dividends. This is the concept of compounding after all - reinvesting the interest. Just replace interest with dividends here.

Even the brightest minds, those who excel in their respective fields, tend to overlook a simple rule when it comes to the stock market: never fall for the seductive allure of tips. They're like cunning traps masquerading as helpful advice.

Yes, we will invest when the market goes down but how will you know whether it will go up or continue to go down? That's why SIPs are the answer.

Happens from time to time. Out of the blue, without any apparent reason or breaking news, traders rise from their slumber and impulsively decide to unload their entire stockpile in a company. The stock plummets, leaving us bewildered and scratching our heads, desperately seeking answers to the perplexing question: "Why on earth did this happen?"

Maybe not you, but I will 100 per cent regret not investing when the 2020 fall happened. If you had invested in any Sensex stock, there's a 97 per cent chance that you would have made double-digit returns.

As we mentioned above, it's just free real estate. Government has numerous other companies like Coal India. Want a few thousand crores? All it needs to do is sell 2-3 per cent stake in a company and voila!