A bridge was built to connect two parts of the city. A toll tax was proposed but officials wanted it to be a "progressive" tax. They decided rich people will pay more to cross.
So how to identify rich and poor quickly?
They had an idea, rich people wear shoes ( it's 1888 remember ), so they decided to charge a tax based on that. If you cross the bridge wearing shoes, you pay a tax, but if you are barefoot, you cross for free.
Simple
Easy
Difficult to avoid
Brilliant idea
But it failed.
Why?
The rich simply took off their shoes and crossed the bridge. ( Tax Avoidance )
The poor?
They did not want to be seen as poor, so they would wear shoes or borrow shoes to cross the bridge.
This is a true story.
So what are the lessons?
1. Poverty is hidden yet visible.
2. Poverty is more in the mind.
3. Rich stay rich by spending less. Poor stay poor by spending more.
4. Humans are irrational.
5. Rich always get better financial advice.
6. Taxing the rich to help the poor sounds great but is complicated.
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
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.
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.
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.
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