People completely underestimate the impact of this aspect (Diversification) in all walks of life, forget just financial.
The classic case happening in front of our eyes – INDIGO Airlines disaster (for whatever reasons)
As per some articles – all flights from Delhi cancelled today
Over 100 flights from Bangalore cancelled etc.
500+ flights cancelled in the last day and a half
Over ₹ 25,000 Cr wiped off in IndiGo ‘s market cap
And…
Our skies have just Indigo & AirIndia control over 92% market share in between them, with Indigo @ 65% market share in the Indian skies.
We’ve failed to diversify from this duopoly and are facing serious consequences for some historical actions.
Diversify
Diversify
Diversify
We just don’t know what can hit one’s life. That’s impossible to know. But we behave today as if we know what’s going to happen in the future 🤐 & just stick to our own residual thoughts.
We need to sincerely understand some basic risks and then try to plug them, at least at a base level.
Though not all, a few of my conversations with people lead towards a discussion – as if people know with certainty on what’s going to happen tomorrow ‘or’ that an asset (physical asset in specific) can be sold off, at will 🤦🏼♂🤷🏼♂
I can only say….All the very best for these thoughts 👍🏼 & Good luck
Ideally, wise people learn from other people’s experiences
Realistically, many don’t learn even from their own experiences
I can only be a bystander, in such situations – Can’t help 😌
If some good words (well wishing / cautioning) can’t stop people from getting into troublesome situations; once the debacle happens, I can only take the role of a good listener to lighten one’s burden (that’s the reality)🙏🏻
Listen
Understand
Reason out
Think
Think again
Re think
Execute
That’s the order….for an orderly life / money & life
Like it or not….
I’ve seen people sell / close their fixed deposits, at will
I’ve seen people sell their mutual funds, at will
I’ve seen people sell stock portfolios, at will
I’ve seen people sell gold / silver or other commodities, at will
I’ve seen people sell their vehicles, at will
I’ve seen people sell their furniture, at will (when they move places)
I’ve seen people sell their artefacts, at will
I’ve seen people sell their electronics, at will
I’ve seen people sell bonds & some other financial instruments, at will
But……
I’ve not come across anyone who could sell their real estate (property), at will 🤷🏼♂
So….
Lock up, only the amount that you can afford to
Keep the tap’s ability to open with liquidity, at all other times