Wolf of Wall Street
On Wednesday, the 5th of October, the library auditorium was transformed into the Mecca for getting rich quick and smart. Wolf of Wall Street was a workshop organized by the Bizzmaestro category, which dealt with investing in the stock market and the various aspects attached to it. Mr. Harish, proprietor of Premier Investments and a business associate of Motilal Oswal Securities Limited, led the workshop with a lot of vigor and gusto. This was the second time that this workshop was being conducted in MIT. Mr. Harish was behind the success of the previous one too, which was quite evident from the turnout of over 300 students, all of them eager to know about ways to make money if they couldn’t get placed.
Mr. Harish started the workshop with a promise to put the audience to sleep. A promise he failed to keep. “Intelligence has nothing to do with the amount of money you make in the stock market. Discipline is all you need.” This very statement piqued the interest of the crowd. Over the next couple of minutes Mr. Harish explained the difference between an investor and a gambler. Wise investment involves meticulous research which reduces the risk of loss and increases the chance of winning some big money. He then went on to quote Warren Buffet’s famous golden rules: “Rule Number 1: Never lose money. Rule Number 2: Never forget rule number 1.” The workshop cited other real world examples of getting rich, just like the eponymous movie.
At this point the workshop started getting a bit more technical, with the introduction of certain formulae and graphs that would help us to make better decisions about our finances. The first tip given by Mr. Harish was to always make sure that when investing, the rate of Return on Investment (ROI) was greater than the rate of inflation. The second concept the audience was introduced to, was titled “the rule of 72”. The formula for this rule is- 72 / (Rate of Interest) = Doubling Rate. For example, if a certain investment had a rate of interest of 9% then that investment would double itself in eight years. Mr. Harish emphasized on the need to create wealth to meet the ever-growing financial needs. He advocated the purchase of land, gold and stocks as smart ways of increasing assets, over the all too familiar method of fixed deposits and mutual funds. He then went on to discuss certain real world issues that are financially draining like housing loans, car loan and marriage(s), among others.
Mr. Harish then talked about how the Indian mentality still hasn’t been able to grasp the potential of investing in the stock market. India, with a population of over 1.2 billion, has only about 40 million people who trade in the stock market. He touched on the need of long term investments in order to make big money. In his opinion, people should always keep an eye on their savings rather than their expenditure and that every person should start investing as early as possible and invest regularly to reap maximum benefits. The speaker also suggested investing in established brands like ITC, Nestle and Colgate rather than upcoming tech companies, as this field is highly volatile. One must also be updated on current affairs to know which sectors to put their money on.
The final and possibly the most vital formula for the day was simply called, “The Equation of Becoming Wealthy.”
FV = PV ( 1 + r )n
Where, FV = Future Value
PV = Present Value
r = Rate of Interest
n = Number of time periods.
Armed with this equation, any person can weigh the benefits of one investment opportunity over the other and take the right financial decision.
Mr. Harish finally spoke of the bright future that India presents and advised the students to invest in India. With this, the ninety minute presentation by Mr. Harish came to an end. It was followed by an eloquent note of thanks by Mr. Balakrishna Maddodi. Diti Bagga, the Event Head of Wall Street, then came on stage to talk about Bizzmaestro’s online event ‘Wall Street.’ Wall Street will be held every day from the 12th to the 14th of October, from 9pm to 1 am. It will be like an online stock trading forum where participants can buy and sell stocks to make money. Those with the biggest profits for the day will be declared as winners. Finally a brief Q&A session was conducted where Mr. Harish addressed the doubts and concerns of the students.
Speaking to Proma Chakraborty, the Event Head for this workshop, the excitement was very visible. She was very surprised with the massive turnout. Speaking on the relevance of this workshop to engineering students, she said that the stock market is a very popular thing among the students as everyone is “attracted to making money.” She also said that since this was one of the few non-technical workshops being conducted, it was “a deviation from the usual.”
To conclude, Wolf of Wall Street was truly a roaring success. The audience was very receptive of Mr. Harish’s wisecracks and his advice. The event was smoothly managed by the vigilance and event teams. Thanks to this workshop, perhaps more students will plan their finances in a smart fashion, a trend that needs to be seen in this time and age.