Stocks shares blue chips and Broken Hips
‘Hey DB , how about a trip to Mississipi .’ I wasn’t very keen as I had a lot of work to do but AK, my school friend and now in the police ,was calling me after a long time so I decided to oblige . ‘Ok when ?’ ‘This Saturday , I’ll reserve a table for us’ he said . Reluctantly I agreed . Mississippi was AK’s favourite local pub . Being a tee-totaller , the only thing I liked about it was the yummy starters and the cranberry mocktail , and of course the company of a good friend .
That weekend , after we sat down at the pub and ordered some snacks , he said ‘ You know DB , I’ve dabbled in stocks and shares quite a bit . Initially I made a lot of losses , I felt like quitting . But now I do my research diligently before investing and touchwood have been doing reasonably well . ‘ I didnt know much about shares or the stock market but then we were rudely interrupted by a smartly-dressed bald chap ‘ I think i know both you chaps ‘ he said as he approached us with a wide grin . ‘ Man IB , how much you’ve changed . If not for the scar on your chin I probably would not have recognized you . ‘ AK said as he hugged him . IB , a long lost school-mate who had now relocated to the city after almost 15 years of living elsewhere . Glad I said yes to Mississipi , it was good to catch up. IB was early for a rendezvous at the pub with his colleagues .
As we started discussing careers , I learnt IB was now a full-time Investment Banker . AK had moved between three police stations in the last four years , and was now something big in the Traffic control department . He was hoping to stay on in the same position till retirement . Realising I was a doctor , IB asked ‘ You know my cousin recently had a fall and broke his hip . Because of the lockdown he could not seek medical attention immediately . He’s now been to three doctors and all three have advised surgery . He is a diabetic hypertensive and has had a heart attack in the past but since then has been in good health . But none of them has promised a risk-free …..’ AK abruptly stepped in ‘ IB can we not discuss health here please . I have been coming to Mississipi with DB for the last couple of years , and he doesn’t like talking about work . He just likes to unwind and feel nostalgic discussing school and college days while sipping his favourite cranberry mocktail ‘
‘ Oh but I love my work , I’m very passionate about what I do . So let’s discuss the stock market . How much have you invested in stocks and for how long DB , how are your shares doing ‘
“None . I know nothing about the stock market and am only into some mutual funds and SIPs . Stocks ? That’s a no-no for me . I don’t wanna venture anywhere near them”
‘Are you crazy ? What’re you doing mate ? There’s so much money to be made , don’t be so foolish . I can’t believe you are talking like my aged grand-dad who’s viciously against stocks and shares . In this day and age , how can you say such negative things about stocks ? Haven’t you heard – don’t work for money , make your money work for you ? ‘ I was least interested , because right from childhood I’ve heard only negative reviews of stocks , and I had decided long back that I would stay as far away from Sensex and Nifty as possible .
But IB was in no mood to give up ‘Ok let me explain in as simple terms as possible . Let’s say you put 100rupees into a company by buying some shares . The company does business using that money and earns 120 rupees . Of all the gains that they make, a percentage of the profits will be passed onto all the shareholders including you, from time to time , which is called a dividend . Let’s say your shares worth 100Rs become 180Rs in value sometime in future , and at that point you decide to sell those shares and book your profits . Which means just by sitting at home you’ve made a 80% profit on your investment . Are you with me so far ?’
‘ Yes that’s easy to get . But I have a question IB . Lets say that company is not doing well . Then what happens to my money ?’
‘Then the value of your investment drops , unfortunately . But generally speaking , if you stay invested for a long period , you will earn decent returns on your principal investment .’
Ok IB , what if the company I bought shares in suddenly goes bankrupt ? Then what happens to my investment ?
“Then,unfortunately you’ve lost everything mate . But I’ll tell you what , that’s why you don’t invest in any random company , do your homework and find a well-known large company that has been in the market for a long time , popularly called ‘ Blue chip ‘ companies and put your money into the stocks of those companies . Here the returns that you get maybe average , but at the same time the risk of you losing your investment is also very less . When you invest in smaller companies which theoretically have the potential to become big blue chip companies over the years , then you may earn much better returns on your deposit . A word of caution , though , coz if the market crashes , such small cap companies can take a severe beating . You could lose significant percent of your deposit , and sometimes the entire deposit too . “
‘What about so-called blue chips like Franklin Templeton . Aren’t their investors struggling ? ‘
“ Well yes they are , there’s always a risk in the stock market , you can never make that risk zero . But hope with careful planning you’d be able to find the right companies to invest in . That’s where someone like me can be of help .’
‘What if I don’t invest at all, because I don’t want any risks . I’ll just leave the money in my savings account in the bank .’ This time AK interrupted , he didn’t seem impressed with my logic . ‘ Tell me DB , everytime you go out on the road there’s a risk that someone could bump into your car , for absolutely no fault of yours . But does that prevent you from getting out of the house ?’
IB added “ Hey hey don’t talk like a fool . Have you heard of the term inflation . What is 100 Rs today will cost 107 or 108 Rs in 3 years , because of that ‘ inflation ‘ So your aim should be to make this 100 Rs give you returns of more than 8 % , i.e you need to try and beat the inflation . Money stashed away safe in a locker loses value over the years , this is a very stupid idea .
‘But IB wont the bank give me some interest ?’
“ Yes it will , but then that interest is so low it may not help you beat inflation that’s why you should always be pro-active and invest “
‘But IB I’m very skeptical about stocks shares and the share market . I’m apprehensive . I’ve never wanted to go anywhere near stocks and shares .’
AK joined in “That’s simple DB , don’t worry, always make a list of your financial goals . What are your needs , and when do you need that cash . For kid’s education , or for his wedding , or for buying a house . Assess your risks vs benefits . Like IB said before , there’s never a zero risk in stocks and shares and ….’ IB again interrupted ‘ If you carefully do your research and pick your stocks , you could be the next millionaire . Always invest in stocks . Haven’t you heard of Berkshire Hathway and Warren Buffet ? “
AK didnt seem to fully agree with IB . ‘ IB , there are many other options than the stock markets – SIPs, equities , PPF schemes etc to name a few . Why not consider those before .. ‘ IB interrupted ‘ Coz your returns are much better with stocks my friend . Some companies have turned multi-baggers over the years like MRF and Eicher . Had one invested Rs 1 lakh in MRF two decades ago,it would have been worth 50 Crores or more today ‘ ‘But IB , to identify such companies may not always be easy . Your calculations could go wrong ‘ IB sighed , as if to say what kind of duds his friends are .
As we asked for the next refilling of starters , IB said ‘ Hey I’ve given you so much info about the stock market . Now can you tell me what to do about my cousin’s hip . You know I just don’t want any complica… “ AK intervened again , IB didn’t we say DB doesn’t like to discuss work outside of work . Just leave him alone mate . Meet him in the hospital sometime and clarify your queries . Anyways now you’re gonna be in the city for a few years at the very least “ It’s ok AK , Let him ask . I’ll explain to him as best as I can . So what were you saying IB ? “ He showed me his cousin’s Xrays on the phone , who had sustained a Neck of Femur fracture . This is one of those fractures which needs treatment options tailor-made based on the patient’s physiological age ( not chronological age ) and his level of activity prior to the injury . IB’s cousin was only 55, relatively young but was heavily overweight , a smoker , was a diabetic and a hypertensive and had had a heart attack in the past that made him look like he was 75+ physiologically . ‘ IB , even I would advise surgery because this fracture will not heal with bed rest . And we should aim to get him up and about at the earliest possible otherwise he can have complications of staying in bed for a prolonged time like bed sores , lung infections , Urinary infections , clots in the legs which could go to the lungs …. ‘
IB interrupted , “ I know he needs the surgery , but neither him nor his family wants to have any complications whatsoever . And none of the three doctors have been able to promise him a risk-free surgery . So what are their options “
‘Hmm that’s interesting , before I answer your question , can you tell me one tablet which has no side effects .’
Without wasting a second ,”Paracetamol!” , he answered . “I know almost everyone has used it or will use it sometime or the other “
‘But IB , I know a patient who collapsed after taking Paracetamol . Trust me , no doctor wants to have complications . Everyone wants to do the best for his or her patient . Because having complications complicates the scene . Every tablet , procedure or surgery has its own risks and benefits . One can never make that risk zero . I have seen patients collapse after a simple injection for a blood test . And I have also seen patients with major medical problems , for whom extensive counselling had been done , including taking consent for ‘death-on-table’ , who have come out fully well inspite of going through a major surgery , and inspite of all their major medical health issues . A close aunt of mine with severe asthma collapsed after taking Cetirizine , a tablet that she normally used to take whenever she has a cold , as it may cause irregularities with the heart beat . I personally , am allergic to Cetirizine . I get a black patch on my lower lip , a FDE Fixed Drug Eruption . Can you beat that – I’m actually allergic to an anti-allergic !! As for your cousin’s hip , neck of femur fracture is notorious for multiple reasons . Even in the best of hands , attempts to repair the broken hip may fail . Some end up requiring a replacement , and unfortunately the hip will eventually need to be thrown into the bin , its place being taken up by an artificial hip . And for those who are physiologically older than their actual age , like your cousin , it’s better to primarily replace the hip instead of trying to fix it coz if fixation fails , he would need another major surgery , another anaesthesia which again carries its own risk . As a doctor, I can only give suggestions and options for treatment . But the final decision has to be made by the patient and his family IB ‘
IB didn’t seem happy . He excused himself from us as his colleagues came and went to join them . AK just smiled and said He hasn’t changed much from school days , has he ? ‘ AK continued ‘ I’m in the traffic department now . Going out on the road exposes you and me to the risk of an accident . In my opinion , both in stocks and in medicine , there’s no ‘ one size fits all ‘ solution . How much to invest , whether to invest at all in stocks or not is entirely one’s own decision . There are many other options available for investing , not just the stock market because the market can be volatile , your money could go up or down . The same way , problems can happen with medical treatment too . A drug that works well for me may cause a reaction in you . Then your treatment will need to be tailor-made for you . Even ‘blue chip hospitals’ and the very senior and experienced ‘ blue chip doctors ‘ can also have complications . Am I right DB ? A good doctor will listen a lot and assess the situation before giving a suggestion , something which every good financial advisor should also ideally do . Don’t go blindly by what IB said . Ultimately whether you go to the stock market or not , it has to be your decision , just like you deciding to have that surgery or not .’
In today’s world its very easy to blame doctors , hospitals and healthcare workers . In India , violence against the medical community is rising alarmingly . Unfortunately , complications are given the term ‘ medical negligence ‘ by the media . Both are entirely different . Every tablet has its own set of effects and side effects . Every procedure has its own risks and benefits . Every surgery comes with its own set of advantages and complications . Please don’t get me wrong . I’m not trying to justify complications that patients may unfortunately have to go through . If the concerned doctor or healthcare worker or the hospital have not followed standard operating procedures or established protocols haven’t been adhered to , then by all means they need to be pulled up . But to blame everything on the healthcare system is not justifiable . Working in a tertiary care hospital , my colleagues and I get to see many patients initially treated elsewhere come to us with complications , some in a sorry state . Many with broken hips , with fracture neck of femur . And most of them , while conversing with us , want us to tell them that the previous doctor or hospital have messed up big time with their hip . Many of them are chronic smokers , uncontrolled diabetics , some who have not yet managed to give up on alcohol who are anyways at a higher risk of developing complications compared to healthy individuals . Just like one needs to invest time in carefully analyzing and reading about a company before buying its stocks , one also needs to invest time and effort into his own health . Not adhering to what the doctor suggests , doing whatever you feel like and then blaming him for not getting better is not his fault .’
In these Covid times , venturing out anywhere is a risk factor for you and me to catch the virus . The same with hospitals . Any trip to a health care facility which is taking care of Covid patients is a risk factor to get Covid . A popular singer who recently had gone for a routine health check up contracted the disease and unfortunately succumbed to it after a prolonged battle .
Being a surgeon myself , I know how much of planning and discussion goes into every patient that needs to go under the knife . Many times , we involve specialists from other departments too , what is called an MDT multi-disciplinary team meeting where the patient’s current status and concerns are discussed in great detail , and only after that is a definitive plan made . A lot of counselling happens . We check for specific implants’ availability days or sometimes weeks before the surgery is planned . For patients who have significant medical problems , the anaethesia department too sees and assesses them well in advance , and allots only a senior consultant for that surgery . Inspite of all these , we still sometimes end up having complications . Some big,some small . I’ve heard this being said in many conferences both in India and abroad ‘ A surgeon who says he has never had any complications has either operated too little , or is outright lying .’
If complications arise due to negligence on part of the doctor or the hospital , then please dont hesitate to file a case . But please remember , complications and negligence do not mean the same . They do not sound the same . Their spellings are far from being similar . Because , we all need to understand that complications and negligence are both completely different . Just as we need to spend time and effort in deciding what stocks to invest in , we need to spend time and effort in taking care of our health . There are no magic pills in the market , and there are no ‘doctor-magicians’ in the healthcare system . And without doing our homework , without taking care of our health , it is not right to expect every medicine/surgery to do wonders .
I’m so glad I said yes to AK that weekend . I’m now eagerly waiting for his next call , to sip a glass of cranberry mocktail as I listen to his balanced views and valid points . Even if IB were to gate-crash us , I’m pretty sure I won’t need to do much , coz AK will deftly and maturely handle it , even if it were to involve another round of arguments and counter-arguments about stocks and shares and broken hips .
