Coconut and Currency Conversation

When we are surrounded by nature, the amazing properties that create its beauty are way beyond our comprehension. None teaches you like Flora and Fauna. I love to see things in my own peculiar way. The greatest investment that our ancestors have made for us is the nature that is around us. Unfortunately, that remains the most undervalued one too.
While holidaying in Kerala, I had a chance to visit my relative’s home at Ernakulam. Beautiful home with a small creek passing by. While at their terrace, I noticed this Coconut palm in its fruitful splendor and charm. I felt like she, the tree, has asked me to compare our professions. Mine as Investment Advisor and hers, as a fruit-bearing tree.
It was an interesting conversation and exchange of ideas to stand against all odds to be fruitful.

Flowering Period

Flowering Period
The period of Flowering is akin to the Financial Planning and Goal Setting meetings. Among a few hundred flowers, just about a few get to reach the gestation period. When you start your investment journey, you are often dealt with the “Plenty of Flowers” situation. Remember all won’t fructify, choosing the right one and nursing them will have a fruitful result.

Testing Times

Testing Time
The first 2 years are the most crucial. Like any other newly bloomed tree that faces extreme weather conditions, we face lots of different kinds of weather conditions. In social parlance, they are known as market rumors, negative news on the economy, inflation, FII, DII, and so on. They will test our willpower. Many investors just jump ship without discussions.

1% Above Fixed Income

Just About There
In this phase, we all face a challenge. Hold or Sell? Without proper Financial Planning and a Time Horizon, most people end up doing what they perceived as right. Apart from FOMO, there is one more phenomenon, “Whenever I buy it falls further and whenever I sell it starts raising”. These are some of the “thoughts” that plague us throughout our investment journey. Learn to invest and forget it for a specific time period.

Shielding from Loss

Fruits of The Labour
When the time arrives to look at the fruit of the labour, one has to plan for protecting them with all jugaad available at disposal. In the investment arena, we use rebalancing and profit-booking to do so. An investor with adequate debt exposure always awaits an opportunity to invest and take advantage of the given situation. Portfolio management is basically a shield you create for all eventualities with a proper risk-reward matrix.

Signs of Profitability

Signs of Profitability
Traditionally Profit is considered as the absolute growth one witnesses in their capital deployed. Let us understand the disparity here. Profit is not Capital and capital should not be part of the goal. If your Target Goal was Rs. 10 Lakhs, then the amount you invested shouldn’t be part of that goal.
SIP of Rs. 5000 x 12 months at 15% CAGR will take you to the target of 1 Million. If you carefully examine, 50% is your capital and the other 50 is only profit. We need to overcome this dichotomy and plan well. Stay long-term and stay healthy.

Professional Conversation

Flower to the Coir
Journey of a Coconut Palm and us.
The Palm: Your education and overall growth
The flower: That is your very first investment.
Nut to Fruit: Your conviction and time spent
Tender Coconut: Emergency fund
Coconut: Corpus created
Coconut Oil: Long-lasting profit
Coir Fiber: Legacy left for next generation.
Seed: Vision

Happy Investing. Your comments are welcome.

2 responses to “Coconut and Currency Conversation”

  1. Cdr.Sanjay Somkumar (Retd) avatar
    Cdr.Sanjay Somkumar (Retd)

    Superb write up Antony. Loved the way you have compared the coconut tree with our investment strategy and all the metaphors that followed. Since I am also in Kerala for a short trip i can well relate to this since the coconut tree has an all pervading presence in Kerala………..

    Liked by 1 person

    1. Thank you so much Sir. You inspire and motivate me a lot.


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