Rajiv Mehta Profile picture
Feb 14 25 tweets 5 min read
Late last year,two young men decided to live a month of their lives on the income of an average poor Indian. One of them, Tushar, the son of a police officer in Haryana, studied at the University of Pennsylvania & worked for 3 years as an investment banker in the US and Singapore
The other, Matt, migrated as a teenager to the States with his parents, and studied in MIT. Both decided at different points to return to India, joined the UID Project in Bengaluru, came to share a flat, and became close friends.
The idea suddenly struck them one day.Both had returned to India in the vague hope that they could be of use to their country.But they knew the people of this land so little. Tushar suggested one evening -Let us try to understand an average Indian, by living on an average income
His friend Matt was immediately captured by the idea. They began a journey which would change them forever.

To begin with, what was the average income of an Indian? They calculated that India's Mean National Income was Rs. 4,500 a month, or Rs. 150 a day.
Globally people spend about a third of their incomes on rent. Excluding rent, they decided to spend Rs. 100 each a day. They realised that this did not make them poor, only average. Seventy-five per cent Indians live on less than this average.
The young men moved into the tiny apartment of their domestic help, much to her bemusement. What changed for them was that they spent a large part of their day planning and organising their food. Eating out was out of the question; even dhabas were too expensive.
Milk and yoghurt were expensive and therefore used sparingly, meat was out of bounds, as were processed food like bread. No ghee or butter, only a little refined oil. Both are passionate cooks with healthy appetites.
They found soy nuggets a wonder food — affordable and high on proteins, and worked on many recipes. Parle G biscuits again were cheap: 25 paise for 27 calories! They innovated a dessert of fried banana on biscuits. It was their treat each day.
Restricted life

Living on Rs.100 made the circle of their life much smaller. They found that they could not afford to travel by bus more than five km in a day. If they needed to go further, they could only walk.
They could afford electricity only five or six hours a day, therefore sparingly used lights and fans. They needed also to charge their mobiles and computers. One Lifebuoy soap cut into two. They passed by shops, gazing at things they could not buy.
They could not afford the movies, and hoped they would not fall ill.

However, the bigger challenge remained. Could they live on Rs. 32, the official poverty line, which had become controversial after India's Planning Commission informed the Supreme Court
that this was the poverty line for cities (for villages it was even lower, at Rs. 26 per person per day)?

Harrowing experience

For this, they decided to go to Matt's ancestral village Karucachal in Kerala, and live on Rs. 26.
They ate parboiled rice, a tuber and banana and drank black tea: a balanced diet was impossible on the Rs. 18 a day which their briefly adopted ‘poverty' permitted. They found themselves thinking of food the whole day. They walked long distances,
and saved money even on soap to wash their clothes. They could not afford communication, by mobile and internet. It would have been a disaster if they fell ill. For the two 26-year-olds, the experience of ‘official poverty' was harrowing.
Yet, when their experiment ended with Deepavali, they wrote to their friends: “Wish we could tell you that we are happy to have our ‘normal' lives back. Wish we could say that our sumptuous celebratory feast two nights ago was as satisfying as we had been hoping for throughout
our experiment. It probably was one of the best meals we've ever had, packed with massive amounts of love from our hosts. However, each bite was a sad reminder of the harsh reality that there are 400 million people in our country for whom such a meal will remain a dream
for quite some time. That we can move on to our comfortable life, but they remain in the battlefield of survival — a life of tough choices and tall constraints. A life where freedom means little and hunger is plenty...
Plenty of questions

It disturbs us to spend money on most of the things that we now consider excesses. Do we really need that hair product or that branded cologne? Is dining out at expensive restaurants necessary for a happy weekend?
At a larger level, do we deserve all the riches we have around us? Is it just plain luck that we were born into circumstances that allowed us to build a life of comfort? What makes the other half any less deserving of many of these material possessions,
(which many of us consider essential) or, more importantly, tools for self-development (education) or self-preservation (healthcare)?

We don't know the answers to these questions. But we do know the feeling of guilt that is with us now.
Guilt that is compounded by the love and generosity we got from people who live on the other side, despite their tough lives. We may have treated them as strangers all our lives, but they surely didn't treat us as that way...”
So what did these two friends learn from their brief encounter with poverty? That hunger can make you angry. That a food law which guarantees adequate nutrition to all is essential. That poverty does not allow you to realise even modest dreams.
And above all — in Matt's words — that empathy is essential for democracy. @WeekendInvestng
Barefoot - The other side of life - The Hindu - thehindu.com/opinion/column…
entrackr.com/2021/07/health…

Tushar is doing this

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More from @rajivmehta19

Jan 15
10 mindset tips for #traders.

1️⃣ Be process oriented. Trading is a business & your trading system is a business model.
The output is money which comes automatically when your system works right. Focus on the right execution of your system! You can Remove the P/L from your screen
2️⃣ Be careful with the information you consume. Everything we read, watch and listen to can have an influence on our mind. Only consume media which is helpful – avoid everything else. Ignore trader hero movies, hypes and popular bestseller books … Be selective!
3️⃣ Reflect your thoughts. You must be a constant listener of your own thoughts and analyze them in real-time. Was the thought helpful? What does it mean? Write is down if it helps you! Talk to yourself loud and reflect your thoughts if it helps you, but listen to your thoughts.
Read 10 tweets
Jan 11
WhatsApp forward but intriguing ;

The highest bull markets in any nation happen when the economy moves from 2 Trillion to 5 Trillion.

1) China took 5 years to go from 2 Trillion to 5 Trillion (2004-2009) – During this time the Hangsang went from 8500 to 32000 – A 4 times gain.
USA took 11 years to go from 2 Trillion to 5 Trillion (1977-1988) – Dow Jones between 1977 to 2000 went from 700 levels to 12000 – Gain of 15 times.
Japan took 8.5 years to go from 2 to 5 Trillion (1978-1986) – Japanese stock market between 1978-1991 went from 2000 to 37000.
So historically the mother of all bull markets in any nation starts between 2 Trillion to 5 Trillion!

4) India and the Indian economy is just getting started. The next 5 to 6 years are extremely important for the Indian economy.
Read 4 tweets
Nov 10, 2021
*Irrational exuberance and rational humility*

By R Gopalakrishnan

The writer was director, Tata Sons and vice chairman, Hindustan Unilever during his career

The disconnect between the fundamentals of several companies and their market valuations has widened over the last year.
While this exuberance may well prove to be justified for a few companies, for most, it will be judged to have been thoroughly misplaced. 

Disruption is to be welcomed, it is a fantastic event. As history shows, the line between disruption and mania is thin—
remember Tulipomania (1636), the Mississippi Scheme (1719), and the South Sea bubble (1720). Nick Leeson’s last few trades brought the mighty Barings Bank down. Gordon Gekko could not imagine his protégé, Bud Fox, double-crossing him.
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Sep 18, 2021
*Home Loan @ 0% Interest*

*Do you know❔*
-------------------------------
💢You can get back all your Home loan interest you pay through EMI's.

*How❔*
-------------------------------
💢 If you avail Home loan of 10 lacs for 20 years with an interest rate 9.5% your.....
#SIP
Monthly EMI: Rs. 9,321.31/-
Principal Amt : Rs. 10,00,000/-
Interest Payable : Rs. 12,37,144/-
Total Amt Payable: Rs.22,37,115/-

Now to get back your interest you just have to keep aside 0.10% of your home loan amount.
0.10% of 10,00,000/- is 1,000/- per month till the tenure
*Start an SIP Till the tenure of your home loan with the amount you are keeping aside. (ie Rs. 1,000/-)*

what will be value of Rs. 1,000 pm @15% if invested through SIP❔

After 20 years➡

Principal Amt: Rs. 2,40,000/-
Value@ 15%: Rs. 14,97,239/
Read 4 tweets
Sep 16, 2021
IMP Note for #ITC
“Committee is of the opinion that the FDI in tobacco sector albeit in a regulated manner would stimulate the production and processing of Indian tobacco thereby boosting its export.

Rerating Trigger ?
The Committee, therefore, recommends the Department to undertake a study to analyse the prospects of opening FDI investments in the tobacco sector at the earliest,” the report states.

Currently, FDI is prohibited in manufacturing of cigars, cigarettes and tobacco substitutes.
Quality tobacco at par with international standards is available in India at competitive prices and there is good potential for export of Indian tobacco to China. The revival of the phytosanitary protocol with
Read 6 tweets
Sep 10, 2021
1. *Uday Kotak on FT Live today.* *_Key points:*_
2. We are somewhere closer to the Investment cycle
3. Private Investment will go up either in 2022 or early 2023
4. Supply constraints and sustained demand pickup will propel New Investment Cycle
@udaykotak #banknifty
5. We have now greater clarity on how Covid19 will do for the past 15 months and even if it is going to be there for a while, we have now ways to meet with it.
6. India fared much better than countries like NZ, Singapore on dealing with 2.0 wave
7. Credit Pickup will happen because the stressed sectors are already taken care of by emergency measures and PLI measures and other relief measures. So Financial Sector will have brighter days.
Read 11 tweets

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