Investing Wisely!

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Investing Wisely!

4 Feb, 1:30 PM

[Music] hi guys uh this of course is a topic which is close to everyone's heart and the reason i'm starting off with this slide is literally this is what doctors have become today that in order to remain in the same place you need to be constantly running you know i understand exercising on the treadmill is good for us but not too much so it's really become completely stressing and one of the reasons i'm talking today is i've been an ivf specialist for donkeys years but i'm also reinventing myself so i'm an angel investor as well i invest in the stock markets and that's what i'm going to be sharing some of this with you i think this is particularly a fortune time because kovet has served as a wake-up call there's no question that kovit is disrupted medical practice completely and especially for surgeons for example or people who do a lot of planned elective procedures professional income has taken a big hit and that's why i think people understand that you need to be able to plan what you're going to be doing with your money how you're going to be able to generate it and you can't just remain dependent on professional income anymore so the first question of course is why aren't doctors rich i mean hey you know we're the ones who came first we're the nerds with the geeks we're the ones who got the 99 and the 100 and all the guys who could never pass and who had to copy from us they're the ones who did their becomes and their seers or whatever else and they're earning five times as much as we are you know they drive around in the mercedes and we're stuck in a maruti so why is that happening and i think the first thing i need to emphasize is the reason doctors aren't rich is because we honestly don't have any financial freedom because for most of us our only source of bread and very little butter unfortunately is our daily income which means effectively doctors are daily wage earners you know on the day you do the operation you learn the money on the day you do your consultation you learn the money but if you decide to take a break you're not going to get any money which is why doctors are so reluctant to take holidays and they're actually kind of a little bit scared and what happens is when you're young you're willing to work hard there's lots of cash coming inside and effectively the good thing about medicine is people are going to fall ill all the time so it's a recession-proof business but don't confuse cash flow with wealth and the reality is there is very little wealth creation for most doctors which is why retirement can be a nightmare and one of the reasons doctors don't retire of course party because you know we're so busy being doctors that we don't have any other interests and we kind of say oh god once i stop seeing patients then what else will i do with my time and often it's a wives who kick us out and say please continue seeing patients i don't want you sitting at home eating my head but more importantly if you don't generate that cash flow and the only way of generating cash flows by seeing patients you just don't have any peace of mind and i think this is a big problem and i've learned this the hard way you know i think part of the problem is being very smart as a student is we think no end of ourselves we actually become a little intellectually arrogant and it's like of course i know everything if i know everything in harrison if i know everything in you know of course you know i mean how can anyone compare with how smart i am if i know all these 500 different arcane facts all this is just child's play but they actually don't and in fact if you talk to most campsters they say the easiest people to take for a ride are doctors especially because they think they know so much so let's step backwards you know i've been asked certain questions should we invest in crypto should we invest in this which is the best stock to buy and i think the first thing we need to do is understand what financial planning is and step number one is goal setting because if you don't know what your goal is there's just no way you're going to be able to reach it so i think that's the first thing what do you want for yourself how much money do you want to keep in the future how much what are your expenses going to be so you have to be able to sort that out how hard are you willing to work when do you want to retire what other interests you have the second is asset allocation which again is very closely tied to diversification and what does that mean you don't put all your eggs in one basket because you know i mean it's great if you have a great basket but sometimes there is problems and that's why it's helpful to be able to say well okay there's some here and some there and typically the returns on some of these assets will change over time so that when you're young and you're working hard most of your cash flow will come from professional income because there won't be much money spare money you'll have to be able to invest in the equity markets but as you get older and the equity markets start giving you a return because of the magic of compounding you will earn much more money from the equity markets than you will from professional income and that's such a great spot to be in because then you have complete financial freedom it's all passive income whether you work or you don't work the equity markets will keep on making you richer and wealthier all this is very simple and i strongly encourage you start by reading books on how to plan your life financially but it's not easy because it needs discipline and i always tell people the best way to make money is to use other people's time and other people's money and that's the reason why bankers are so rich because that's exactly what they do i'm going to break up my talk into three areas one is conventional investments and these are things like gold real estate equity all the new fancy asset classes what works what doesn't and why i'm also going to be talking about some of the mistakes which doctors make and what you can do to prevent them and then and then i'm going to be talking about what we can do as far as investing in startups go because i think that's a hot area and it's something which is very close to my heart and i'm going to talk a little bit about that i think the good thing is i have nothing to sell i'm not trying to promote a mutual fund i'm not trying to tell you to invest in this and that's something you need to remember always be wary of advice from financial advisors who make money based on the advice they're going to give you and that's why bankers are such poor sources of advice because your bank manager has certain targets to meet and he'll keep on calling you up doctors and poor doctors are reasonably gullible and they're always happy to oblige the bank manager they don't know any better because they haven't got a goal in their head so your most important investment and this is especially true when you're young is going to be yourself so you need to invest in yourself and your own practice and that's why medical education making sure you remain up to date your 10 conferences your polish your surgical skills is so important before you start investing in anything else first invest in yourself grow your clinic learn what the new procedures are keep on mastering new skills traveling overseas seeing what other people are doing is very very helpful i don't know if you've read this book by dr atul govanday famous guy who actually invited an other senior professor to come and watch him doing surgery now atul gavin has 20 years of experience and yeti called someone and said can you watch what i'm doing so that you can help that's so humble and this additional person acts like a coach and tells you you know why don't you try this or why don't you try that i think that's great and i think that's the beauty about partnering with junior doctors because as you get older whether you like it or not you run out of energy you become a little bit jaded and then having young blood uh people who understand it the young blood has a lot of energy lots of skills but they don't have any patience and this is actually a great way of marrying the two two things together i think as far as entrepreneurship goes there is no question about it that medicine is a profession and it's something we're very proud of it's a service profession but every private medical practice is also a small business you can't afford to forget that you need to learn practice management skills and you know i know this is an extremely sore topic and i always get into trouble when i talk about it but cuts kickbacks and commissions have become so mainstream but the reality is unless you can cut out the middle man and unless you can thrive without giving cuts you're always going to be at the mercy of someone who chooses to refer patients to you now this could be the gp this could be anyone else or it could actually be a website like tractor these days so please don't let that happen you need to be able to own your own patients and i think this is another important concept if you only keep on thinking about income in terms of money i think you're always going to be unhappy because a lot of people who do much less valuable work much less stressful work will end up earning a lot more than you and honestly you know being a doctor is a fairly thankless job in the sense when things are going well doctor of a problem and you know i mean i don't think we're either gods or devils we're just human beings trying our best but we always get these extremes and that's why it's important to value the emotional income that when a patient says thank you when they say thank you to a bureaucrat or a politician they only do it because they want a favor from that particular chair but when they say thank you to a doctor it actually comes from the heart and that's why it's something which you should value and that's not something which most people have most professionals don't have that kind of ability to be able to get that heartfelt thanks and i think it means a lot again the only way to be an efficient doctor is to make sure that you have assistance and juniors they're your biggest asset and unless your employees are happy there's no way your patients are going to be happy the only way to keep your patients happy is to keep your employees happy you know as doctors i mean we skimp on salaries we don't bother to train them there's a lot of churn but she's just a receptionist all kinds of things and i think that's terrible and i think sometimes i think a good idea is you you should actually call up your clinic as what we call a mystery shopper and see how well the phone is answered and see how well the reception is behaved and honestly if she's not doing a good job because she is the front of your clinic she's the first person who gives the first impression and if she's not doing a good job none of the patients are even going to come into your clinic because it doesn't matter how good you may be as a doctor they actually need to cross certain hurdles to get to you i'm not going to go over a lot of this stuff because most of it is basic applied common sense most of us know it but we have this free website it's called we've written lots of books and one of the books we wrote many years ago is called successful medical practice it's available free on the website and you know i'm it's interesting i mean i must have written the book it's nearly now 20 years but nothing has really changed i mean i guess it's not surprising you know the principles are always going to remain the same and it's all about what doctors need to do in order to put patients first in order to make sure they have a successful medical practice i think this would be a very useful book uh i love the subtitle it's why most medical practices don't work and what you do about it and the reason he calls it the emit physician he says as doctors we're so married to our surgical skills if you're a surgeon or your consultation skills or your ability to interpret an x-ray or what have you your professional skills that you don't understand how to run your business and therefore even though you do a very good job you're not able to grow so the important thing you emphasize is it's not enough to run just your business you need not enough to just work in your business you need to work on your business so that you can grow it so you can start delegating you can start handing things off you can have standard sops so that it works perfectly even in your absence so basically what does anyone want from a good investment and this is fairly standard common sense you need to be safe you know people worry so much about return on capital that it's got to be profitable and they forget about the importance of safety return of capital and i think that's the first most important thing because the more speculative these returns are the more hyped they are much more likely that they're going to be unsafe so returns first you need safety of capital it needs to be profitable what does liquidity mean it means when you want the money you should be able to take it out again and each of these asset classes i'm going to be talking about has certain pros and cons and we'll discuss those of course it needs to be tax efficient that's always a big problem because the government will take away a lot of whatever you earn and finally and this is important it needs to be customized to meet your personal goals and again i'm emphasizing goals unless you know what your goals are no financial advisor is ever going to be able to create a financial plan which is right for you so you need to spend that time and energy and the good thing is you're a doctor guys you're smart you're capable of figuring all these things up you know anyone who understands the facial nerve and the course and where the vegas runs all this is actually child's play it's all common sense i think this is important and this is a great book which i'll come back to again afterwards and i think this is the truth is that when you don't have any plan at all you keep on worrying about money and it's a new worry every time whereas once you've created a plan and it literally just needs to be a one-page plan and that's the title of the book the one-page plan you'll be sorted and again this is important you know and therefore people will listen to the budget and we'll do day trading and figure out crypto and you know when doctors talk no one ever talks about how much money they lost to bitcoin bitcoin and the reality is that only two things things that matter and things you can't control and you need to focus only where these two intersect everything else is really pointless so before we start talking about investment we need to talk about insurance as i said safety first and obviously insurance is safety because that's risk management and you need three kinds of insurance all of us do one of course is life insurance incidentally life insurance is important when you're young because in case you know you die early someone needs to take care of your dependence then of course if you're a doctor you need medicaid which is for yourself because irrespective of whether you're a doctor or not today if you end up getting a heart attack or falling sick the hospital is still going to give you this fat bill and you'll only understand how fat hospital bills can be when you actually receive them because when you're on the other end and you're actually billing the patient none of this actually gets into your head about how expensive it can be so please make sure even if you're a doctor that you have a medical policy for yourself and for your loved ones and finally you definitely need professional indemnity insurance no matter how good a doctor you are there is going to be problems even if hundreds of your patients are satisfied there will always be that dissatisfied one who will make your life a misery so you need to take all these three kinds of insurance about life insurance please don't get suckered into buying what are called unit linked insurance policies because all these insurance agents they make money on every time they sell your policy they make an amazing amount of money they get a fat commission and you sign up and they get a fat cut each and every year from the premium you pay to the insurance company people don't know that so please only buy a basic plan don't waste your money don't confuse insurance and investment no matter what they sell you and the biggest problem of course is all these insurance companies that great at collecting the premium but every time you raise a claim you'll realize how hard it can be to actually get money out of them so what are your traditional investment options and you know you know most of these and there is an entire here comes richard yeah so we have one poll here so i'll just run that before you explain them about all the assets where they can invest so according to you all uh what bills strong financial portfolio here is what you all think it is so real estate and share market are most people prefer that they feel that it will strong financial portfolio gold and fds on the lowest part so 43 of people here say that real estate builds strong financial portfolio followed by uh share market and gold gold and other assets yeah okay let me go let me go through why i don't agree with that assessment but let's first start the first of course is cash and the one thing doctors generate on a regular basis is cash and it's very tempting to keep that cash and not declare it to the income tax office and i'll come back a little bit about why that's not such a great idea you might think that cash is tax free but you'll come back to haunt you gold and silver of course you know there's there's a lot of comfort especially in india and whether you believe it or not your daughter will or your mother-in-law will or your wife will and that's fine i think real estate is something which i need to discuss and then of course all these fixed return investments whether it's saving bank account or fixed deposits or public profit and fund then you have other all kinds of equity which is all the share market and then you have debt mutual funds and i'm going to go through these one by one let's start with cash cash of course is the easiest because it comes in all the time and the beauty about cash is you don't need to pay any tax on it so that's what most people do i'm not saying they stuff it under the mattress but they give it to their friendly builder friend who also happens to be a patient you'll double your investment all that kind of stuff but cash is actually pretty terrible as an investment for one thing inflation is guaranteed to destroy its value there is of course the risk of threat a theft and all these tax rates and seizures and surveys will actually end up giving you sleepless nights not something which i would recommend at all saving bank accounts and fixed deposits of course you know this is the lazy option passage bank manager in ebola doctors up for a passage although you move it to the fixed deposit it's making five percent six percent whatever else you think oh great my multi my money is multiplying its compounding but that's a delusion it's actually a lazy option it's actually a guaranteed method of losing purchasing power because people often especially doctors don't understand the difference between real value and nominal value which means the purchasing power of 100 rupees today is maybe one tenth of what it was you know 40 years ago so it really doesn't mean as much so i think it's important to have some money in your bank account but enough for emergency use and the reason it's important is you don't want to end up liquidating your important assets just in a time of distress and again you should have a public provident fund that's actually great but remember even though all your family members should create a provident fund for it's great as a return because it's tax exempt but the problem is there's a big cap so there's not too much which you can put into that but you should in any case so whatever extra money i first put in a ppf and then start looking for alternative options we're all fascinated with gold you know that's basically three done but there are downsides whether it's theft you lose it and that causes such major heartburn and in this you know there's so much money lost in actually making jewelry and they're making charges and you know the purity is not assured so it's a big problem having said all this gold offers a huge hedge against inflation especially when inflation is expected to go completely out of control and jewelry is an option because obviously it has utility value and you can show it off but there are other options not just physical gold i think that's unsafe but it should be digital gold and you get gold bonds you get sovereign gold etfs and that's something you can talk to your uh and you know and even before talking to your financial advisor please google all this stuff i keep on reminding people you guys are smart there's more than information available online you should actually look at this what about real estate i think what typically happens in the real reason doctors love real estate as i said is they use cash for buying it and then you can launder that transaction all tell these stories and these are our anecdotal windfalls i think if it's actual land and you happen to be staying in a tier 2 tier 3 tier 4 city which is now becoming urbanized perhaps that's possible but otherwise i don't think that's true and the reason it appreciates is because there is by default a very long holding period because it's hard to buy land there's so much paperwork due diligence it's so hard to sell it said automatically when you have a real estate transaction it lasts for at least three to five years and the magic of compounding kicks in so land value appreciates certain land value not across the road because don't forget land value you go ahead and buy it and some gundam comes and encroaches on your property or your plot you might as well say bye-bye that's why it came according to safety of capital so land value appreciates property does not appreciate as much as you think it does that's a big problem because whenever you want to buy something the builder will charge you a premium and whenever you want to sell something you'll always be forced to sell at a discount so there's no liquidity at all which is a big problem and i understand this emotional attachment but honestly from a purely business perspective it's much more cost effective to lease rather than to buy so just keep that in mind that ultimately a house is actually if you read this great book which he talks about passive income it's called rich dad poor dad a house is actually a drain on your cash flow because you need to keep on maintaining it all the time as i said before real estate creates tensions and it's tension between husband and wife between brother and brother and all kinds of things litigation dispute and once you go to court you might as well say bye-bye if you're lucky your grandchildren may get to see some of your wealth it gets encroached and like i said it is and then most sales are really distress sales big problem what about shares now i personally am a big believer in the stock market i honestly think it's the best investment option i would say 25 30 years ago a lot of these stock markets were rigged they're still rigged i'm not saying they aren't but it's only the penny stocks where you speculate which gets rid it's very hard to rig a blue chip quite frankly because there's so many people fis diis and you can't go ahead and manipulate the market and the reality is as india becomes richer and richer year on year the economy will grow the value of shares of good businesses will grow and you really have three or four options one is you can buy mutual funds and often if you don't have the time of the energy especially if you're a young resident i would just say buy index funds pop your money and don't look at that it'll keep on growing while you're keeping on improving your investment in yourself by acquiring knowledge of course you can do it through a pms which is called a portfolio management scheme which is what i do within you know finding the right person you can trust is not easy or if you're inclined you can go ahead and buy shares of select companies but let me warn you if you do not know how to read an annual report if you do not know how to interpret the footnotes in an annual report if you don't understand what ebitda is and you don't understand what depreciation is please don't try doing this because you just end up fooling yourself and i've burned my fingers many times you read the economic times that are this company just got this order share prices but a good business is not always a good share please remember that in any case the trick is start investing early stay invested and invest over long periods of time and that's the good thing about an sip it forces you to be disciplined whether you like it or not so again i think this is an important thing and this of course is the million dollar question you know you need to be rocket engineered you need to be warren buffet and i think this is what the reality is is that every investment return no matter what it is the investor return which is the return which the investor gets in that investment is always going to be less and that's partly because we don't understand how to control our behavior or our emotions which is why we often end up buying high and selling low because you buy when there's a lot of hype and you read the newspaper and you have all these talking heads on tv talking about how much money they made and then because you have no conviction in what you bought because you're not bothered to do your homework the moment the market at share price goes down 10 you say oh god i was an idiot i got cheated what is actually if you have the conviction and you understand why you bought it in the first place that's the time to actually buy more shares but the reality is most doctors lose money in the share market and i've lost it and then once you burn your fingers you say yeah this is a mug's game and part of the problem especially during covet is every doctor and his dog started day trading based on tips from their patients and tips from their friends and colleagues and you know we doctors overestimate our intelligence i'm sure i do that too not just you guys so you can't time the market trust me about this you know all of us think we can and the trouble is we forget about the nine stocks we bought which time you only remember selectively the one which did well and honestly stock selection is a full-time occupation and you actually have better things to do with your time so i don't think that's a great way of actually engaging yourself it's something which gives you a kick and you know you're happy looking at reading annual reports rather than seeing patients then i think that's fine but otherwise i would discourage you and i think this is the reason why because there's so much noise you know i've stopped reading newspapers i don't look at tv news channels because i think they all contribute to noise everyone has a hidden agenda they're all trying to sell you something on the other and the information which you can actually rely on is much smarter and of that information the stuff which might actually be useful to you actually vanishingly small and this of course is how we end up messing up all our actual returns because the more emotionally attached you are and you can say hey you know what there's something called anchoring i bought that titan share when it was fifteen hundred which up the fifteen hundred ni so then the market goes down but you don't wanna take your losses goes down again doesn't wanna take your losses that's why you end up keeping on getting stuck with all these losers and then when you buy something in 1500 it goes up to 16 area i'm so smart let me cash out and then that same stock goes up to 15 000 and then you realize what an idiot you are some of us never realize what idiots we are but that's a different story there's a share market trap of course miss selling is rampant especially your bank manager all these financial advisors and you can't trust a financial advisor when he's making money based on the advice he's giving you because let's be honest interests are not aligned you're obviously going to care more about their fees rather than your returns you know all of us are human beings and i think this is a bit of a problem this is how most doctors think of the share market today that it's a gamble it's a relay that no one really knows and all people just end up losing money but honestly that's not true but this is exactly what happens that when there's a lot of hype you want to buy this greed comes in and then the moment the market drops like it's not oh god better get out it's going to tank even more so then out of fear you sell and then you keep on doing it actually the curve is wrong it should have actually been going downwards downwards downwards until you're left with nothing at all how should you invest in the share market honestly find a registered investment advisor who provides fees advise only for fees which means he actually charges you money for giving you advice doctors are very reluctant to pay for advice which i find surprising i mean we as doctors are professionals and we charge for the advice we give our patients so if this guy's giving you good advice which is helping you get richer why would you want refuse to pay him but you know how we are because there's so much free advice available we don't value good quality advice we're reluctant to pay for it but you need to make sure that you find the right registered investment advisor that you're on the same page you have the same philosophy but please be disciplined when tracking returns and there's so many great books you can read on this and honestly i would say before you buy even a single share you should have read at least five books and don't get fussed about which particular book my suggestion is usually by five they're all going to say the same thing so by the time you're reading the second and third book you'll say you won't waste much time then read one book which is written 30 years ago because that's a classic and then read a book which is recent recently so you'll get a much better sense of understanding how things have changed and what makes sense for you again it's up to you you can keep on watching the news and the ticker tape with the sensex and what's happening and what the melody said about the budget and what that all that stuff or you decide that you know this is all noise and i'm only going to care about what's going to happen over the next five years or 10 years or whatever okay so now we come to the angel investing piece and this of course is where everyone gets rich everyone wants to be a vc everyone wants to be an angel investor you read all these stories about flipkart and hola and uber but the truth is angel investing will not make you rich and if you're not careful it'll actually end up making you poor let me warn you for one thing it's a very illiquid asset class don't expect to get any returns at least for five years you need a lot of patience because let's be honest you know startups are like babies they're immature they're embryos they have to grow and it takes time for them to grow and again the reality is 80 of them will fail and if you aren't mature enough to accept this please don't give any entrepreneur any money because you'll make your life miserable and you'll make his life miserable and honestly there's just so many things happening that he can't control any of this stuff most important piece of advice i would give you is only invest money which you can afford to lose without losing any sleepover most important thing and you know these days i understand angel investing is becoming fashionable everyone watches shark tank you have all these angel investor groups and platforms and aggregators and syndicates and everyone is after let me warn you and that's a guaranteed way of losing money because all these platforms will only talk about their success stories they will not talk about all their failures and they will only emphasize oh we identified this company and in two years it's given an irr of 100 or what some rubbish number and they won't talk about the 98 other companies they invested in which have gone completely partly because they're trying to sell themselves they want your money and partly because of survivorship bias and that's why all this startup media and all this startup presses loads of rubbish because the only guys who issue the press releases are the vcs who actually will fund the startups who want even more money and they won't tell you about their failures so honestly lots of failures and when i say your loi is more important than roi that's my personal belief loi stands for learning on investment and the amount you can learn from these young guys these young enthusiastic entrepreneurs who bring so much energy and passion into the room is enormous so if you're interested in learning about let's say fintech or ai or ml i think that's brilliant and that's one of the reasons why i believe in investing in these startups again be realistic it's important to have a portfolio approach that at least you can diversify and then put it in multiple startups it's very important in the beginning to join a network where you can at least learn from other people who have far more experience and are far smarter than you please read about angel investing but please remember it's not a get rich scheme do your homework again don't fuss about which particular book you read i always tell people every book is going to give you the same information it's like it doesn't matter which textbook you read in medicine it's all going to be the same content you know so therefore you should buy at least three or four and then skim through it and i think you'll enjoy it someone just asked me that question which books to read read the book which you gonna enjoy don't read a book which dr malpani tells you to read because just because i like a book doesn't mean that you're gonna like it and all of us have different tastes so it's worth sampling it and the book is such a good return on investment i mean for thousand rupees you have this expert who has all this real life experience and he's willing to share it with you so honestly what's the point of being literate if you refuse to read a book so why do i enjoy being an angel investor and i always tell people boss i have no success stories i haven't made any money don't listen to me if you want to make money by being an angel investor because i'm the wrong person to listen to but i enjoy it emotionally as i keep on emphasizing it makes me optimistic you know jabal safety the constant thing is the world is going to the dogs no one appreciates doctors in the good old days doctors had such a great life now everything has gone to pieces patients don't like us patients don't appreciate us hospitals treat us badly all patients want to burn down hospitals and beat up on us but hanging out with bright young ambitious entrepreneurs who want to create a better future some of that energy and enthusiasm is infectious trust me it also gives you great networking opportunities because you get to meet other angel investors from different domains you know i think as doctors we so inbred 90 of the time we're talking to other doctors which is why we become so myopic and i think this is a great way of understanding there's so much more to life than medicine i think it's cool for your reputation when people know wow you're an angel investor wow so i think that helps and i think the most important thing as far as i'm concerned is i think it actually helps you remain young because you need to learn all the time so i'm pretty good at ivf you know i think i know pretty much all the well that's not fair i know pretty much most of what there is to know about ivf because that's what i've been doing for the last 30 years but i know zero about crypto i know zero about algorithms i know zero about e-commerce and when i put money in a startup i expect the entrepreneur to teach me so when i read his statements he tells me what's happening what's working what's not working i learn quickly and again if you want to have a look at our investments what we've chosen and stuff please have a look at our website and we're very open we build in public we try to share information as far as possible so i think doctors make good angel investors even though perhaps they may not have that financial expertise because hey i think we're taught to be empathetic it's an important clinical skill and you need to be empathetic to entrepreneurs who are young who are running into trouble and spending sleepless nights because they're running out of cash and don't know what to do next we have domain expertise in healthcare so if you want to invest in healthcare startups that's great because you can act as a brand ambassador you can act as an evangelist you can arm twist your colleagues hey boss why don't you try out this new device which this startup i have invested in creates and as doctors you have a lot of goodwill in the community and of course because doctors in private practice are entrepreneurs themselves you understand a lot more about the pain points which entrepreneurs go through but the good thing is if you're an angel investor you actually become a better doctor because your business sense improves because you learn from the mistakes the entrepreneur makes so one of the last areas i'm going to cover right now and this is mostly for the younger doctors is doctors as entrepreneurs not just necessarily as medical practice private practice medicine specialists but as perhaps creating medical devices for example so if you want to be an entrepreneur this is a great time you need to be willing to take calculated risks you need to be prepared for failure you know that's one thing medicine medical college doesn't teach you because failure is not tolerated in medicine but startup is completely different you need to be resilient you need to understand that you will fail full time but as long as you keep on bouncing back that's okay patients can be very helpful and they're quite happy to help doctors because they have a soft corner i think the great thing about becoming an entrepreneur is it's a great journey irrespective of whether you make money or not but you will learn so much about yourself your ability to handle other people your ability to handle money your ability to handle competition and government and bureaucrats and 50 different things because you have to know all this stuff and you learn a lot about the world as well doctors find it very hard to actually run medical startups because for one thing all doctors are number one i'm the captain of the ship i'm the boss you know where everything i say goes and they're not very good at being team players which is a bit of a problem finally we're very good at cramming facts you know we can understand all the five different branches of this that and the other we're not very good with the hands we're not taught how to tinker that's a bit of a problem finally there's not many successful role models whom we can emulate so it's you know the kind of people will say to the doctor so it's very hard to find support most people find it much safer to be conventional and start a clinic and i think that's sad because so many lost opportunities because i think this is the difference between a doctor who does things one patient at a time as compared to the way an engineer looks at the world because an engineer doesn't want to solve just one problem at a time he wants to solve problems which will impact lots of patients which is why the impact is so much more the good thing is it's much easier for a doctor to learn to think like an engineer it's practically impossible for an engineer to think like a doctor so that's the edge you have this is something which you might be interested in at jj hospital we've actually funded what is called the mice labs this is an acronym which stands for medical innovation creativity and entrepreneurship the website is we're teaching medical students how to innovate because we actually think you need to catch them young they need to be able to understand that the whole world is their oyster you know if an engineer can do it there's no reason why they can't and there's so many resources available so we actually want to encourage and push them that you don't have to be dependent on someone else you can't be an entrepreneur if you want to be you actually have the right to win if you ask me and i think doctors need to partner with healthcare startups give your give these young entrepreneurs a chance they want to make the world a better place they want to help doctors take better care of their patients you can learn a lot from these healthcare entrepreneurs and if you're willing to be a beta tester i think that's great for you because you'll learn new stuff and you can teach them mentor them and if you really like them so i would say initially just act as an advisor and if you really think they're doing well and you know over a period of two to three years they earn your trust then invest in the ones you admire it helps you remain on the cutting edge of medicine so things like telemedicine and robotics and all this stuff will no longer remain foreign to you you won't feel threatened by artificial intelligence and machine learning algorithms this of course is a famous slide it's called ikigai and this is what medical students need to focus on is that you need to find what you love what you're good at what the world needs and what you can be paid for and i think if you can do that and that's my last slide i think all of us will be much happier okay okay i'm done thanks a lot it was amazing i love the last slide ikigai finding your own rhythm is very very important it's amazing book uh so if everyone wants to read it's amazing read uh really uh so before moving on to uh questions i want to tell you all if you want to ask her questions directly you can raise hand i'll accept your request you can come on stage and interact with sir live uh so whoever is interested can raise hand uh still then i can already see here there is one request for you to take one session on for doctors who want to start up so mandar my doctor mandarin has raised his hand uh am i chris accepting your request dr mandela just turn on your audio video and you will be able to interact with them um good evening so good evening hi uh sorry turn on the video chat i am in the hospital right now but i am listening to your uh your podcast means your lecture right now in hospital and it was very interesting so question is um what all other means can i can as doctors invest in certain businesses and uh what you can say uh new what old running businesses like any pet store or any other shops or something like that part of in so i think that you're doing more on a personal basis because you have a relationship i think these are great businesses because they generate cash flow on a regular basis so effectively this is what we call revenue based financing which means you have someone who let's say earns five lakhs as a pet store and he wants some more money which is bank managers doesn't want to give him then you can definitely give him that money because you have a personal relationship and by helping him to earn even more even cash infusion you can share some of the profits but you're not going to be able to exit that business please understand that and good evening ma'am uh i'm a junior resident second year so i'm i was recently going through this stock market and the caps called grow zero uh frankly speaking i don't have much knowledge about the stock market but uh sir how once how one resident should go with the stock market like in the initial phase for beginners like us so i would say first step is information therapy buy at least three or four books where you understand what your goal is in life and then how investing can help you reach that goal don't get carried away by all the fraud and the financial newspapers and the stuff you read on the you know because they're all out to sell you something so that's really dangerous and i think things like zeroda are actually very dangerous especially because they kind of make it so easy it's a click of a button and then everyone just shares their success stories and you don't know what you're doing and that's literally like gambling so i think that's dangerous so i think if you're not sure what to do your best bet would be to do what is called an in-house fund which charges very very low fees so over time we know that the sensex will grow as the economy grows so you'll make those returns which i think is great in the beginning and then you can start reading more stuff you can buy annual reports you can buy books on how to decide my personal philosophy is what is called value investing it's not technical it's basically this is how you determine what the value of a company is and it's all based on information which is available publicly so warren buffet for example is a value investor but there's lots of room my limited point is if you're not willing to invest the time and the energy to read the books please don't waste your money because you'll just end up burning your fingers yes uh firstly i want to thank you for this really amazing session sir thank you thank you ma'am it was really enlightening um sir i'm actually a medical intern right now i'm in my internship and i'm preparing for my residency for the for need and other exams so i'm also invest interested in startups and other such things so i wanted to ask you how do i balance studying or possibly entering residency soon and uh you know giving time to something like this that was my question so i think each of these things is quite honestly a full-time profile so you need to kind of decide what's important and the best thing to do is if you have a friend who's running a healthcare startup or someone who's interested in this thing then you can offer to engage with them and providing them with input the good thing is everything is digital so it's not very hard to do a lot of this stuff and i think it'll just make your life a lot more interesting so if you make yourself available and that's what social media is so great for hey you know i'm a smart intern i'm happy to help startups i'm happy to do this for no customer whatever else that's engaging yes uh so sir there are few questions uh i'll just take highlighted ones uh if i start investing in mf's or mutual funds how many schemes and how many amfs should i have to start with is the question i think that's a good question but again this is stuff which you need to decide there's no one single answer which fits everyone that's what i'm trying to tell you because the answer is going to depend on what your risk appetite is how old you are how much of your money you're putting in your mutual funds and unless you know what your goals are you should never take advice from anyone else and you definitely should take advice from someone like me who doesn't understand what your personal circumstances are and the answer to that question will change over time depending on how old you get depending on how much money you want to invest but it's worth trying to do some homework to answer those questions for yourself after you've done your homework you'll then be able to evaluate advice from someone else much better right i think one of the other questions someone had asked in the middle is how do you find a registered investment advisor you can trust and how can you how do you know who to trust you know i think that's an interesting question because that's the same question patients ask about doctor's boss how do you find a doctor you can trust and it's true you know there is no simple answer to that question and there are good doctors and bad doctors and there are good investment advisors and bad investment advisors so the rule is simple trust but verify it means do your homework so you can make sense of what the person is telling you so you don't allow people to take you for a ride all right okay so uh with this we have covered many good questions and sarah has taught us a lot of interesting concepts uh so we would love to have you to talk about startups and many more interesting things the story that you shared the all millennials have heard the first part of it like just to put the stones but the second part was really interesting and we all should think over it from all the perspectives of entrepreneurship finance and everything so thanks a lot for your time thank you thank you so much which i really love the energy and enthusiasm and i love the fact that you're willing to listen to feedback from me i think that's a good sign because that's one way of improving your product and if anyone wants to get in touch with me you can you know just my email is dr malpani at dr so if you want you can just count some very happy emails yes thanks a lot okay thank you so much


What makes a private practice successful? Where should you allocate your money to earn the best returns? Investing encompasses a range of activities, from building your brand to growing your wealth. Being a successful and well-rounded medical practitioner requires balancing these aspects. Let's hear from Dr. Malpani as he shares his wisdom on running a successful private practice while investing in public and private markets. He emphasizes keeping the entrepreneurial spirit alive in doctors!


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