{"id":5147,"date":"2024-03-10T11:55:07","date_gmt":"2024-03-10T06:25:07","guid":{"rendered":"https:\/\/incredmoney.wpcomstaging.com\/?p=5147"},"modified":"2025-02-19T06:30:30","modified_gmt":"2025-02-19T06:30:30","slug":"investments-and-the-chinese-bamboo-tree","status":"publish","type":"post","link":"https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/","title":{"rendered":"The Art of Asset Allocation in Investing"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">A few years back, I came across this old video of Rahul Dravid giving a speech at the 2013 BITS Pilani convocation. He delves into the philosophy of winning the game called life, it&#8217;s nothing short of motivational. You might just find yourself watching that speech more than once!\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can check out the video here.<\/span><\/p>\n<p><iframe title=\"Motivational and Inspirational Speech - Rahul Dravid (Rahul dravid inspirational video)\" width=\"500\" height=\"375\" src=\"https:\/\/www.youtube.com\/embed\/lBTad38EQz4?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p><span style=\"font-weight: 400;\">In this, Dravid talks about the Chinese Bamboo Tree which I found very interesting and wanted to share with all of you.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">He said,\u00a0<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">\u201cYou can take a Chinese bamboo seed and plant it in the ground, water and nurture the seed for an entire year and not even see a single sprout. In fact you will not see a sprout for 5 years. But suddenly a tiny shoot will spring from the ground. Over the next 6 weeks, the plant can grow as tall as 90 feet. It can grow as fast as 39 inches every 24 hours. You can literally watch the plant grow. What was the plant doing in those 5 years, seemingly dormant period? <\/span><\/i><b><i>It was growing its roots<\/i><\/b><i><span style=\"font-weight: 400;\">. For 5 full years, it was preparing itself for rapid and massive growth. Without this root structure, the plant simply could not support itself for its future growth. Some would say the plant grew 90 feet in 6 weeks, I would say it grew 90 feet in 5 years and 6 weeks.\u201d<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">Right off the bat (pun intended), these lines are simply a fantastic mantra to live by. But let me tell you that the lesson about the Chinese Bamboo Tree is pertinent to investing too.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you were to ask someone what the most important factor in investing is, there&#8217;s a high chance they would say &#8216;returns.&#8217; They&#8217;re not entirely wrong, but they&#8217;re not fully right either. When one only focuses on \u2018returns\u2019, the focus is only on the \u2018outcome\u2019. Decision-making is then skewed towards achieving quick results.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example: During the cryptocurrency craze, numerous people put their savings into digital coins solely because it was possible to make extremely high returns in a short period. However, the crypto mania soon died down and many ended up losing a fortune.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is one extreme example of what can happen when one puts returns over everything else.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As an investor, the main idea should be to make the foundation of your portfolio, i.e the roots, extremely strong. And one sure shot way to achieving this is ASSET ALLOCATION. Asset allocation basically means how you divide your portfolio into different asset classes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A portfolio that has investments across different asset classes like Equity, Debt, Gold and Real estate can weather the bad times with less grief as compared to a very concentrated portfolio. Say for e.g. If you had a very concentrated Equity portfolio during the Covid-19 Crisis, you might likely have panicked while seeing your portfolio down ~20-25%. This may have potentially weakened your willingness to invest more in Equity. But if you had a portfolio that was diversified across different asset classes, then you would have been able to see out this storm without much grief.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Like everything else in Personal Finance, the asset allocation for every individual would be different based on factors like age, income, wealth, liabilities, and risk appetite.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When you add the \u2018discipline of investing regularly\u2019 to your desired asset allocation, you will be able to see the magic unleashed by Compounding &#8211; the 8th Wonder of the world.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is the lesson that the Chinese Bamboo Tree leaves us with. Focus on the roots, the foundation, and the outcome will automatically follow sooner or later.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Till the next time,.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Vijay<\/span><\/p>\n<p><span style=\"font-weight: 400;\">CEO \u2013 InCred Money<\/span><\/p>\n<p><span style=\"font-weight: 400;\">P.S. I share my thoughts on Investing and the Economy regularly. You can follow me here.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A few years back, I came across this old video of Rahul Dravid giving a speech at the 2013 BITS Pilani convocation. He delves into the philosophy of winning the game called life, it&#8217;s nothing short of motivational. You might just find yourself watching that speech more than once!\u00a0 You can check out the video [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":5149,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5,4],"tags":[10],"class_list":["post-5147","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-newsletter","category-personal-finance","tag-newsletter"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Art of Asset Allocation in Investing - InCred Money<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Art of Asset Allocation in Investing - InCred Money\" \/>\n<meta property=\"og:description\" content=\"A few years back, I came across this old video of Rahul Dravid giving a speech at the 2013 BITS Pilani convocation. He delves into the philosophy of winning the game called life, it&#8217;s nothing short of motivational. You might just find yourself watching that speech more than once!\u00a0 You can check out the video [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/\" \/>\n<meta property=\"og:site_name\" content=\"InCred Money\" \/>\n<meta property=\"article:published_time\" content=\"2024-03-10T06:25:07+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-02-19T06:30:30+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/devblog.incredmoney.com\/blog\/wp-content\/uploads\/2024\/03\/Chineese-Bamboo-Tree-1.png\" \/>\n\t<meta property=\"og:image:width\" content=\"2492\" \/>\n\t<meta property=\"og:image:height\" content=\"1652\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Vijay Kuppa\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Vijay Kuppa\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":[\"Article\",\"BlogPosting\"],\"@id\":\"https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/\"},\"author\":{\"name\":\"Vijay Kuppa\",\"@id\":\"https:\/\/devblog.incredmoney.com\/blog\/#\/schema\/person\/0613ebd2ee5d43f299b58a95a2d535c4\"},\"headline\":\"The Art of Asset Allocation in Investing\",\"datePublished\":\"2024-03-10T06:25:07+00:00\",\"dateModified\":\"2025-02-19T06:30:30+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/\"},\"wordCount\":632,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/devblog.incredmoney.com\/blog\/wp-content\/uploads\/2024\/03\/Chineese-Bamboo-Tree-1.png\",\"keywords\":[\"Newsletter\"],\"articleSection\":[\"Newsletter\",\"Personal Finance\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/\",\"url\":\"https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/\",\"name\":\"The Art of Asset Allocation in Investing - InCred Money\",\"isPartOf\":{\"@id\":\"https:\/\/devblog.incredmoney.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/devblog.incredmoney.com\/blog\/wp-content\/uploads\/2024\/03\/Chineese-Bamboo-Tree-1.png\",\"datePublished\":\"2024-03-10T06:25:07+00:00\",\"dateModified\":\"2025-02-19T06:30:30+00:00\",\"author\":{\"@id\":\"https:\/\/devblog.incredmoney.com\/blog\/#\/schema\/person\/0613ebd2ee5d43f299b58a95a2d535c4\"},\"breadcrumb\":{\"@id\":\"https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/#primaryimage\",\"url\":\"https:\/\/devblog.incredmoney.com\/blog\/wp-content\/uploads\/2024\/03\/Chineese-Bamboo-Tree-1.png\",\"contentUrl\":\"https:\/\/devblog.incredmoney.com\/blog\/wp-content\/uploads\/2024\/03\/Chineese-Bamboo-Tree-1.png\",\"width\":2492,\"height\":1652,\"caption\":\"Chinese Bamboo Tree\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/devblog.incredmoney.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"The Art of Asset Allocation in Investing\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/devblog.incredmoney.com\/blog\/#website\",\"url\":\"https:\/\/devblog.incredmoney.com\/blog\/\",\"name\":\"InCred Money\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/devblog.incredmoney.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/devblog.incredmoney.com\/blog\/#\/schema\/person\/0613ebd2ee5d43f299b58a95a2d535c4\",\"name\":\"Vijay Kuppa\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/secure.gravatar.com\/avatar\/7dfe464a7ea35d14354919395e26a3a098c6697044db7eb239f49e4791467817?s=96&d=mm&r=g\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/7dfe464a7ea35d14354919395e26a3a098c6697044db7eb239f49e4791467817?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/7dfe464a7ea35d14354919395e26a3a098c6697044db7eb239f49e4791467817?s=96&d=mm&r=g\",\"caption\":\"Vijay Kuppa\"},\"description\":\"CEO - InCred Money\",\"sameAs\":[\"https:\/\/www.linkedin.com\/in\/vijay-kuppa-64622912\/\"],\"url\":\"https:\/\/devblog.incredmoney.com\/blog\/author\/vijaykuppa\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The Art of Asset Allocation in Investing - InCred Money","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/","og_locale":"en_US","og_type":"article","og_title":"The Art of Asset Allocation in Investing - InCred Money","og_description":"A few years back, I came across this old video of Rahul Dravid giving a speech at the 2013 BITS Pilani convocation. He delves into the philosophy of winning the game called life, it&#8217;s nothing short of motivational. You might just find yourself watching that speech more than once!\u00a0 You can check out the video [&hellip;]","og_url":"https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/","og_site_name":"InCred Money","article_published_time":"2024-03-10T06:25:07+00:00","article_modified_time":"2025-02-19T06:30:30+00:00","og_image":[{"width":2492,"height":1652,"url":"https:\/\/devblog.incredmoney.com\/blog\/wp-content\/uploads\/2024\/03\/Chineese-Bamboo-Tree-1.png","type":"image\/png"}],"author":"Vijay Kuppa","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Vijay Kuppa","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":["Article","BlogPosting"],"@id":"https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/#article","isPartOf":{"@id":"https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/"},"author":{"name":"Vijay Kuppa","@id":"https:\/\/devblog.incredmoney.com\/blog\/#\/schema\/person\/0613ebd2ee5d43f299b58a95a2d535c4"},"headline":"The Art of Asset Allocation in Investing","datePublished":"2024-03-10T06:25:07+00:00","dateModified":"2025-02-19T06:30:30+00:00","mainEntityOfPage":{"@id":"https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/"},"wordCount":632,"commentCount":0,"image":{"@id":"https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/#primaryimage"},"thumbnailUrl":"https:\/\/devblog.incredmoney.com\/blog\/wp-content\/uploads\/2024\/03\/Chineese-Bamboo-Tree-1.png","keywords":["Newsletter"],"articleSection":["Newsletter","Personal Finance"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/","url":"https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/","name":"The Art of Asset Allocation in Investing - InCred Money","isPartOf":{"@id":"https:\/\/devblog.incredmoney.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/#primaryimage"},"image":{"@id":"https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/#primaryimage"},"thumbnailUrl":"https:\/\/devblog.incredmoney.com\/blog\/wp-content\/uploads\/2024\/03\/Chineese-Bamboo-Tree-1.png","datePublished":"2024-03-10T06:25:07+00:00","dateModified":"2025-02-19T06:30:30+00:00","author":{"@id":"https:\/\/devblog.incredmoney.com\/blog\/#\/schema\/person\/0613ebd2ee5d43f299b58a95a2d535c4"},"breadcrumb":{"@id":"https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/#primaryimage","url":"https:\/\/devblog.incredmoney.com\/blog\/wp-content\/uploads\/2024\/03\/Chineese-Bamboo-Tree-1.png","contentUrl":"https:\/\/devblog.incredmoney.com\/blog\/wp-content\/uploads\/2024\/03\/Chineese-Bamboo-Tree-1.png","width":2492,"height":1652,"caption":"Chinese Bamboo Tree"},{"@type":"BreadcrumbList","@id":"https:\/\/devblog.incredmoney.com\/blog\/investments-and-the-chinese-bamboo-tree\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/devblog.incredmoney.com\/blog\/"},{"@type":"ListItem","position":2,"name":"The Art of Asset Allocation in Investing"}]},{"@type":"WebSite","@id":"https:\/\/devblog.incredmoney.com\/blog\/#website","url":"https:\/\/devblog.incredmoney.com\/blog\/","name":"InCred Money","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/devblog.incredmoney.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/devblog.incredmoney.com\/blog\/#\/schema\/person\/0613ebd2ee5d43f299b58a95a2d535c4","name":"Vijay Kuppa","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/7dfe464a7ea35d14354919395e26a3a098c6697044db7eb239f49e4791467817?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/7dfe464a7ea35d14354919395e26a3a098c6697044db7eb239f49e4791467817?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/7dfe464a7ea35d14354919395e26a3a098c6697044db7eb239f49e4791467817?s=96&d=mm&r=g","caption":"Vijay Kuppa"},"description":"CEO - InCred Money","sameAs":["https:\/\/www.linkedin.com\/in\/vijay-kuppa-64622912\/"],"url":"https:\/\/devblog.incredmoney.com\/blog\/author\/vijaykuppa\/"}]}},"_links":{"self":[{"href":"https:\/\/devblog.incredmoney.com\/blog\/wp-json\/wp\/v2\/posts\/5147","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/devblog.incredmoney.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/devblog.incredmoney.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/devblog.incredmoney.com\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/devblog.incredmoney.com\/blog\/wp-json\/wp\/v2\/comments?post=5147"}],"version-history":[{"count":1,"href":"https:\/\/devblog.incredmoney.com\/blog\/wp-json\/wp\/v2\/posts\/5147\/revisions"}],"predecessor-version":[{"id":7940,"href":"https:\/\/devblog.incredmoney.com\/blog\/wp-json\/wp\/v2\/posts\/5147\/revisions\/7940"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/devblog.incredmoney.com\/blog\/wp-json\/wp\/v2\/media\/5149"}],"wp:attachment":[{"href":"https:\/\/devblog.incredmoney.com\/blog\/wp-json\/wp\/v2\/media?parent=5147"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/devblog.incredmoney.com\/blog\/wp-json\/wp\/v2\/categories?post=5147"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/devblog.incredmoney.com\/blog\/wp-json\/wp\/v2\/tags?post=5147"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}