Weekly Wealth Reads

A personal series on making sense of wealth

Hi,

I am Ash, and I am on a journey to understand wealth & make some. This is my little corner of the internet to document it; you are most welcome to read it and join the journey.

Beginning with “How women invest in a Man’s world?” by Jyothi Mehndiratta Kappal. I received this book as a gift, and I am truly grateful for that. I also want to take a moment to appreciate Dr. Kappal’s writing, smooth and easy, at the same time, real and empowering.

As women, the world underestimates and over-expects from us at the same time. This book profiles women who have defied the odds in building wealth. It is no alien concept now; we see women talking about wealth and building their own. Now, for anyone who is already investing knows or at least has heard that diversification reduces risk. However, it can be more than just adjusting loss; it is a self-reflection of one’s personal goals, and understanding what’s out there is the key to achieving long-term goals. Writing down all the financial goals and budgeting for them makes it effective, while most of us do mental-accounting and celebrate micro-gains.

We have known our mothers and grandmothers saving up from their grocery money in FDs and SBs or even in rice bags, but we differ in saving up and investing in equity, debt, mutual funds, etc. Women tend to be influenced by their parents’ behaviours in investing, but understanding and acknowledging that times have changed, and exploring the current world with an open mind is essential. It is also crucial to be surrounded with like-minded peer-group and have a partner who shares similar financial goals. Women should also do well on their own and rationalize investing.

Self-control and overconfidence; one builds wealth while the other shatters. I usually fall into trends and overspend, and that’s a lack of self-control. Sticking to the budget every month will definitely grow income and instill discipline. Motivated by previous small gains, we become overconfident, leading to taking on bad debt and betting for a marginal, uncertain gain without proper research.

While I might emotionally cling to a stock as it is associated with a foreign trip or simply attached to the stock, I do not let any criticism of that particular stock affect or change my decision to hold it. This is seen as a conservative bias and loss-aversion behaviour. I shouldn’t let my emotions meddle with the investment I made; instead, have an open mind to new information, a long-term vision, and set a realistic loss-bearing budget.

Finally, choosing not invest in a stock, because the company simply does not reflect your values. Circle of competence, they say; if you know the business in and out, take advantage of it. You get better returns with businesses you understand and not run behind the herd.

Well, let me conclude here. For beginners, this book is definitely foundational. As women continue to drive the workforce and economy, we should lead with intention, intelligence, and influence.