Why did Sai Baba tell Damu Anna to avoid certain people after he became worried about his business? Was this a strategy for success in the cotton trade?

The individual counselled by Sai Baba in this instance was not Damu Anna, but Annasaheb Dabholkar following his retirement. As recounted in Chapter 3, Baba's advice to avoid certain people was a spiritual instruction, not a business strategy. He warned against associating with those who have "abandoned religious conduct," calling them very dangerous and advising not to even stay in their shadow. This was part of a broader discourse on how to properly perform His service, which involved cultivating devotion and pure intellect rather than focusing on worldly gains. The goal was to help Annasaheb achieve spiritual progress, not commercial success.