Sushil Jain — Grow your money - JamaicaObserver.com

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Sushil Jain - Grow your money

JEAN LOWRIE-CHIN

Monday, July 06, 2009

"If you had a business, wouldn't you want someone like Douglas Orane to be working for you?" asked Sushil Jain. "Well anyone can - you just have to buy shares in GraceKennedy!" The financial analyst was explaining the power of the ordinary shareholder and urging more Jamaicans to invest in local companies. "It is a good time to invest," says Jain. "Many Jamaican blue chips are now priced below book value."

JEAN LOWRIE-CHIN

Ever since the global economic meltdown, I had been promising myself to share the wisdom of Sushil Jain in this column. I had occasion to hear him give sound advice on investment in the past, and I knew that if such a man had been in charge of those Wall Street giants, they would not have fallen so hard.

"There was failure of the regulatory authorities
in the US, failure of corporate governance, excessive leveraging, failure of the system in allowing such high levels of corporate compensation, failure of the rating agencies - everybody failed to play their role," commented Jain.

"It is a crime against humanity, a tragedy that has affected the lives of billions, and yet the offenders have not been punished. I applaud the efforts being made at reform, but even now the lobbyists are trying to block them.

JAIN... once you are competitive, you will always be in demand

"In Jamaica, we should use this experience to improve our corporate governance," he believes. "There should be more transparency and accountability. Here, there is no clear definition of qualifications. People are spreading themselves too thin, resulting in inefficiency, and yet there are many qualified people in Jamaica who are not being given the opportunity to lead."

Jain, who came to Jamaica from his homeland India 30 years ago as a recruit with Price Waterhouse, has had extensive experience in Jamaica's public and private sector, and believes that ordinary Jamaicans have enough examples of success around them to know that they too, can build wealth.

Jain says that even if you have only a small savings account, you should inquire if there is a deposit instrument that can offer a better rate and put your money where it can earn more. He suggests that even if you are part of a "partner" scheme, you should put your "draw" into the formal banking system where you can get 10-15 per cent interest.

Jain warns businesspeople to maximise their earnings: "Make sure you keep only a minimum in your current account which earns no interest - transfer your money to a deposit account and get advice about equity investments."

Jain advises, "Every person should have appropriate life and health insurance because you just don't know what will happen tomorrow. The third thing is, a retirement account. There are several of them being advertised and if you can leave your money for five years, you can earn tax-free interest."

Sushil Jain is urging everyone, even if you have no money right now, to attend the many free seminars being offered by various financial and investment companies. He says that when investing, it is good to diversify by country, by sector and by currency: "Right now, there are good prospects for alternative energy, for example, solar, infrastructure and telecommunications. There are many investment opportunities, many companies selling at bargain prices. You should start buying on a slow but sure basis."

Slow but sure? "Yes," says Jain. "Don't buy everything in one month, even if you have the funds. Buy some, then listen, learn, wait and buy more shares month by month. Prospects change from time to time so we have to change too."

Jain says that we have good opportunities right here in our own backyard. "Jamaican companies have paid some

rich rewards," he says, recommending that we go to the Jamaica Stock Exchange website www.jamstockex.com where we can find detailed information on all publicly listed companies. "Remember, once you buy shares, there is no additional work and there are now some Jamaican blue chips offering shares at a discount to their book values."

Jain strongly recommends that entrepreneurs look at the equity option to grow their business. "The Junior Stock Exchange is a good start," he says. He cites the example of the largest company in India - Reliance - started by young entrepreneurs 30 years ago. "They begged people to subscribe, promising to do their best for them. Now they are in everything, growing by 25 per cent each year. They have to hold their annual general meeting in a football stadium, so large is the number of shareholders. The ones who invested $1,000 at the start have seen the value of their shares grow to $1 million!"

Before we get too carried away, Jain wants us to remember that such success stories are built on the ability of an individual or a company to be competitive. "This is the most important thing. You have to keep offering lower cost and higher quality. Once you're competitive you will always be in demand," he offers.

"Education must be very specialised and focused," says Jain. "We should not be pushing degrees in areas where there is no demand. We need to match education to the opportunities in the job market. And we should regard job offers abroad as a welcome thing. We need to remember that we are now in a global village."

Jain has been sponsoring an award for 10 years for the youngest accounting graduate from the Institute of Chartered Accountants of Jamaica. In India also, he sponsors an award for the top female graduate, in a country where, unlike Jamaica, male college students far outnumber their female counterparts.
Jain believes we have many opportunities to advance academically, professionally and financially. It takes study, work and action. Let's do it.

July 4 message from Obama
We got a charge, in an Independence Day Message from President Barack Obama, read by Lloyd W Moss, US Chargé d'Affaires to Jamaica, at an event last Thursday: "It is up to us to teach our children that even though we have faced great challenges and made our share of mistakes, we have always been able to come together and make this nation stronger, and more prosperous, and more united, and more just." A great message for the USA and for us all.

lowriechin@aim.com
www.lowrie-chin.blogspot.com

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