Doctors Required For Financial Prescriptions

If anyone ever claimed that they have never visited a doctor, then it would be hard to believe. And to be honest, I have always looked upto doctors not because they help us stay healthy, but because they have an ever-increasing customer base. 🙂

Doctor Money

If any doctors are reading this post, I request them not to get me wrong here.
What I mean is that like all essential commodities (oil, power, etc)….doctors are also always in demand. Irrespective of whether the economy is going up or down.
Luckily for us, they are not listed on exchanges. 🙂

And this thought of having an increasing customer base, leads me to believe that doctors almost always, are much better off than any other class of professionals, when it comes to having a solid, sustainable and predictable income stream. Though a doctor’s income depends primarily on number of patients he treats, it is safe to assume that there is never a shortage of patients.

Sometime back, I remember someone making a remark that ‘”There are no Poor Doctors.”
And this remark does seem to make a lot of sense.

And honestly speaking, even I am curious to know how doctors manage their finances. With a stable, reliable and almost-guaranteed-for-life flow of increasing income, I want to know the thought process which doctors use to take financial decisions. Where do they invest? Why do they invest? How much risk do they take…etc?

And since I don’t know many doctors who can answer these questions, I invite readers to help me get answers. It would be great if some of you (doctors or their friends / relatives) could share your thoughts with me. You can mail me on stableinvestor@gmail.com and I will do a post sharing your thoughts with everyone. In case you do not want to disclose your identity, then I can assure you that it will be protected while publishing your thoughts.

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Are we too conservative?

We got an interesting mail from one of our readers. It was in response to our post on building a lazy portfolioThe reader said that we are being too(oo…) conservative in our approach and that we can make much more money if we stopped following our ‘Mutual-Fund-Manager-type-Boring-Approach’ i.e, if we were ready to take a lot more risks.

Though we believe that this particular reader had best intentions while writing to us, we would like to answer him as honestly as possible…

Risky Investments

  • Yes… we agree that we are conservative & boring in our approach. But this is totally in line with our risk appetites. There are people who can hold (fundamentally worthless) stocks and sleep well at night. To be honest, we are not among them. We cannot sleep if we hold stocks of companies which are neither good nor great. And we totally agree with Warren Buffett when he said that “Buy stocks of only those companies which you would be happy to hold if they decided to close markets for next 10 years.”
  • In our lazy investor’s approach of portfolio management, we kept 55% in market linked mutual funds and 15% in direct equities. That takes total to a figure of 70%. And that is not conservative at all. 🙂 But if you want to suggest that we need to get more into direct equities then that is a different case. Picking individual stocks is glamorous. But we are no pros at stock picking, and even pros are not good at their game. So, picking individual stocks may be great. But it requires a lot of hard work and time, which are generally not available to average investors like us. And even after we do put in the hard work, we should never forget that “as an investor, one can never remove the risk of being wrong.” It is as simple as that.
  • In Dead Monk’s Portfolio, we again stuck with investing in large, known companies which may not be growing at blistering pace, but have earnings and cash flow visibility. Sticking with great companies reduces the chances of substantial loss of capital. And since we do not want to be wiped out due to a single wrong stock pick, we stick with a portfolio of many large but good/great companies.
  • We love dividends. And good dividend paying companies are generally from mature industries. They are generally not glamorous and are often categorized as boring investments. But as conservative investors, we love sticking to boring companies and will always vouch for the fact that as an investor, “return of capital is more important than return on capital.”

indian dividend stocks


  • Being conservative is not bad. Atleast for us, it’s not. When we know that it pays to wait for corrections when picking individual stocks (want to know why? Click here), then why should we not wait? Once again, when we know that it pays to pick good stocks and do nothing in markets, then why should we not ‘do nothing’?
  • When investing can be made simple and less stressful, then why not make it?


And making investing simple and less stressful is what we aim for. After all, life has much more to offer than just money. Money is always a means to something. Not an end in itself.


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3 things to do before investing in stock markets


All of us want to make money in stock markets. And given a chance, we would love to become Warren Buffet (lol) 🙂.  But we believe that stock markets are inherently risky. And when dealing with risks, one should be cautious to start with. According to us, there are 3 very important things which should precede investments in stock markets –

Build an Emergency Fund
The goal of emergency fund is to have around 6 months of expenses in savings. This can be for more than 6 months too but minimum we suggest is 6 months. The emergency fund is not an investment. It is simply a pool of funds which can be dipped into in case of emergencies. One should not risk emergency funds to earn higher interests. This fund should be parked in only the most liquid of assets like Savings Account. Though this may seem like a lot of money being used to earn minuscule returns, the fact is that it helps in building personal financial security. If you decide to invest in stocks before having an emergency fund, you may have to sell your investments at a time when markets are down and you would then be forced to lose money.

Pay off high interest debt
Paying off high interest debt, especially those of personal loans and credit cards is a must. Many such debts have a 15% + rate of interest. And since it is nearly impossible to find a guaranteed return like that in stock market, it makes sense to pay off these high-interest-rate debts. (One can continue to have long term debts like home loans, etc even when entering the stock markets)

Understand yourself (& your risk appetite & investment time horizon)
Stock markets are not for everyone. If one is not comfortable with occasional rise and fall in portfolio value, then stocks can give sleepless nights. One should never invest more than one can afford to lose in the short term. Before investing even a rupee, one should understand that there are 2 type of risks associated with stock investing; namely company risk (possibility of company going down) and market risk (possibility of overall market going down). There is no way one can avoid these risks. But these can be reduced. And as they say, it is not about avoiding risk that matters, but how to manage the risk that is more important. Another must do for future investor is to figure out why they are investing? Answer to this question itself will give them a direction on where to start. 

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