Mercedes Benz’s report on Cyrus Mistry’s accident – car was travelling at 100 kmph & hit the divider @ 89 kmph.
Well, many of us would think…. that isn’t a speed where people might die, but the reality is very different
Speed at the time of impact was probably an issue but more than that, what was definitely missing was – wearing seat belts in the rear seat
Brakes were applied 5 seconds before the impact
Many of us would think that we can also apply brakes on our portfolios just before markets crash or go down. Think again please.
The reality, we don’t know the speed at which we are travelling on, on our portfolio
100 kmph to 150 kmph speeds are a thrill but, when an …. it’s going to be a horrible result
Driving Conservatively helps
Investing Conservatively helps (based on cash flows, liquidity & % of exposure on net-worth)
Spending Conservatively helps
Borrowing Conservatively helps
Bottomline …
Managing one’s Money Conservatively helps, immensely
Super explanation