Once upon a time in Wimbledon, there lived a king called Roger!

“Wimbledon is a bit like Disneyland – it is a world of make-believe.” Jigneshbhai said when we met last. The three of us were just back from London having gone through the surreal experience of watching a couple of matches including one featuring Federer in Wimbledon.

Jigneshbhai was right indeed. Everything about Wimbledon is far from reality, but once you are taken by the trance, there is no coming back.

The magic that the only major still played on green lawns casts – with its white dresses for ‘gentlemen and ladies’, the strawberries and cream, the royalty, the Dukes and Duchesses,  the formal attire of the audience, the ball boys, and girls in their greens (now blues), the ‘quiet please, thank you’ takes you into a world of its own. Like Mickey Mouse at Disneyland, you know it is not quite real, but like in Disneyland, you still best enjoy it when you drown yourself in the shows and the parades that transport you into a different world of its own.

It is difficult to pin-point what exactly it is about Wimbledon, but it has been doing this to tennis players and fans across the world for over a hundred years now.

“And if anything completes this fairy tale of modern times better in today’s era, it is the sublime grace and majesty of Roger Federer in full flow.” Swami remarked in a truly inspired frame of mind. Like many tennis fans across the world, Swami and I had witnessed a bit of that magic over the past couple of games at Wimbledon.

More so in the semi-final against Djokovic, but partially also in the finals against Murray, Federer gave us glimpses of the sheer genius and astonishing brilliance that he was worshipped for, and which, even at the age of 30, he is still capable of.

In all honesty, till the end of the second set in the finals, we were searching for that flash of genius from Federer.

His game till that point reminded Swami a bit of the knock in the 2011 Cricket World Cup semi-finals that Sachin Tendulkar played against Pakistan – an old maestro who knew the importance of the occasion and wanted to give his best, but, in the face of an inspired opponent, was just about surviving and seeing things through – almost lucky to still be in the game.

I don’t know what it is about our sporting idols that we expect that even a slight drop in their invincibility makes us disappointed.

But for most of the semi-final and, perhaps, from the end of the second set in the finals, Federer was operating in ‘the zone’ as Swami called it, coming up with shots and serves, almost at will and at the right time, that left the audience spellbound and brought back memories of the glorious genius of Federer that we had experienced in the past.

“With 16 grand slams in his kitty even before Wimbledon this year, Federer was already assured of a place among the all-time greats, if not the all-time great, to have played the game.” Swami had said before the finals.

But now, the arguments and discussions about whether he is, indeed, the greatest will probably start all over again.

Even when he was at the peak of his game with much fewer titles in single digits a few years back, there used to be a story of an American and an Australian fan arguing whether Pete Sampras or Rod Laver were the greatest of all time.

And how a Swiss gentleman barged into their argument and said that the greatest is still playing the game and his name is Roger. At that time it was still a prediction, but by the time Federer is done, it is possible that there will be no more discussions – it may well be a foregone conclusion.

Who knows what else is in store?

A few years from now, tennis folklore will have stories of his magic. And those stories will start like this: Once upon a time in Wimbledon, there lived a king called Roger!

fedex-wimbledon-2012

 

 

 

 

 

 

The Double I syndrome

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The Dilbert One Page Summary: All that one really needs to know

dilbertA couple of days back I was reading “Dilbert and The Way of the Weasels”. While this is a funny book, a small section has some amazing insight quietly embedded. In that book, the author claims, perhaps jokingly, that everything that a person really needs to know about personal finance and investing can be summarized in one page. Which actually, I thought, is quite true.

Exactly the kind of problem that I had been facing for a while, when a friend of mine asked me why I don’t write about specific stocks or do more frequent analysis. And all I could tell him is I felt it was not important, and also that I honestly did not have anything to write.

There is only so much you need to know about finance and investing, as an ordinary investor. If a reader reads the earliest few posts written in this blog about investing, and garnishes it with some of the book synopsis or guru speak posts, that’s all that any one needs to know. And that’s also an overkill in my view, and perhaps, even unnecessary. The truth is everything that one needs to really know does not take much writing. The tougher part is in following the simple things with discipline and without emotion.

As an individual investor, if you are interested in a really brief and simple summary, Dilbert’s summary is all that is necessary, honestly. Simple, but by no means, easy to follow.

Dilbert One Page Summary

So here are the 10 things mentioned in the ‘Dilbert One Page Summary’, adjusted a bit with my own inputs. The things that one really needs to know, and would work for most individuals in ordinary conditions:

1. Pay your credit card bill in full, and stop using credit cards. Use only debit cards – money that you already have.

2.  Get term life insurance as early as you can in your life, and keep adding cover every 5 yrs as your income increases. Don’t buy any other insurance, except health insurance every year.

3. Contribute to your employer’s PPF/ Retirement scheme by making mandatory as well as voluntary contributions if you can.

4. Buy a house, if you want to live in your house, and if you can afford it assuming you don’t take more than 60% of house value in loans, which should also be less than double your annual post tax income.

5. Put 6-9 months of your expenses in a liquid fund or cash equivalent that you can liquidate in a day or two.

6. Save at least 25% of your post tax income.

7. From your savings, put 65% in a stock index fund, 25% in a bond fund (or fixed deposits based on tax slab), and 10% in a gold fund. Make increments every couple of years. Do not touch it till retirement.

8. In case you are adventurous, replace the stock index fund with (or add) 3 actively managed diversified equity funds which are rated 4 or 5 currently on Morningstar (or Value research online or similar). Once you choose them, stick to them for at least 5 years, else replace them with the index fund.

9. If any of the above is confusing (specially step 7 and 8), hire a fee-only based financial planner (not someone who takes a fee based on percentage of assets or transaction size) for a two hour advice session and follow whatever he tells you.

10. Ignore everything else that any one tells you.

Anything else is likely to be a waste of time (and money perhaps) more often than not. Even if it does give you some incremental returns for some time, the costs and lack of sustainability are unlikely to make it worth it.

At the crux of it, honestly, that is all there is to it.

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Excerpted from the book ‘What You Need to Know While Investing for Financial Freedom

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