So this weekend begins the tyke’s phase III of his financial education. Phase I was to get him comfortable with the concepts which I started 3 years back when he was 11, Phase II was to actually give him some money and get him to start investments in British companies when he was 12/13. So for the past 15 odd months, he has been investing pretty much regularly. As of last Friday, he is 39% up since beginning of the investment period. Investments mainly in commodities, financial institutions, infrastructure, and some odd sod balancing bits in food, retailers, etc. Almost totally in blue chips, almost all of them were bought when their PE Ratio’s were around 6-7. Have done some sales, such as that of defence stocks and jewellery and and and. The return bounces around, but generally he is doing good. Good trajectory anyway. Even if growth in his portfolio drops by 50%, I think in 3 years, his full undergraduate education in the UK will be paid for.
So Phase III begins. This is to expose him to purchasing global stocks, understand the impact of FX movements, learn how the other markets and firms move, how future cash flows can be impacted, so on and so forth. So he has to start reading the economist magazine weekly to get his general knowledge up. And then we will search for direct investment channels (such as becoming a client of ICICI for India) or buy stocks which have exposure in those countries or buy funds which have those country exposures or get people to purchase stock for us directly in the country (like my father in law does for both the kids).
Bit nervous and excited about this step. Lets see what this experiment brings forth. He is 14 years of age and started to notice girls and be a teen and be surly and speak in grunts and and and and. Strange damn alien has taken up residence in my house. I wonder what will pull him stronger, girls or investments? Mind you, his dad is still pulled towards girls so…heh.