Lets us begin this post by having a look at the following chart:

The chart plots the percent change in AVI family net worth (shown in blue) in comparison to change in S&P 500 index (red). In addition, I plot the change in net worth discounting for the unprecedented growth in valuation for AVI family primary residence (orange). A few salient points about the chart are:

• Discounting for the appreciation in property value, AVI family net worth pretty much tracks S&P 500 index. The deviation coming primarily from income (both Mr and Mrs AVI are gainfully employed).
• The month of Sept marks the first month, for the year 2021 for a month-over-month drop in S&P 500 index as well as AVI family discounted NW. S&P 500 index fell over 4 % for the month, our discounted-NW fell by `~2 %.
• Fortunately, NW did not see much of an impact of this downturn, courtesy robust on-going housing stats.
• Not shown in this chart, but worth highlighting, in terms of discounted NW growth, Sept marked the longest stretch of uninterrupted discounted NW growth for AVI family since Mar 2020.

Following up on a gloomy September for investors, let raise a toast to an optimistic future for value-oriented investors!

Getting back to the topic for the post, here are the updates numbers on AVI family NW

• Net Worth (as percentage of FI number): 132.35
• Accessible Net Worth (as percentage of FI number): 79.81
• Liquid Assets/ Debt Ratio: 4.448
• Cash Balance/Two Year Living Expense Ratio: 1.025

Not much to talk about given that my last monthly update happened in the middle of Sept. Since then, market drop has impacted AVI-family non-retirement portfolio by approx 1 %. The impact was rather large on 401K investments, which I attribute to large foreign-stock exposure, in particular China. Primary residence valuation continue to show strong upwards trend. Although, in some markets (Orlando for example), for the first time in a very long time, I have started to see price drops!

On the CC expense side of things, we splurged a bit last month. It was AVI-Kiddos 10th birthday, and he wanted to celebrate bigly!

Video/Book/Article/Audio for last several weeks

• Books: With the markets starting to look choppy, inflation on the rise and no respite to the meme stock phenomenon, I was reminded of one of the classic financial history books, Devil Take the Hindmost, by Edward Chancellor. Its been a sheer joy re-reading this book again to remind myself, history may not repeat itself but it sure does rhymes!
• TV Series: Second season of Kota Factory was released on Netflix recently. As a kid from Mumbai, I never really understood, how was it possible that there were so many kids from “Kota”, (had never heard of it) in our batch of IIT students. IIT coaching was a big business then and is very much so today and no wonder Kota is still deemed to be the coaching capital of India!