One very important reason for people to lose money in the stock market is SELLING WHEN YOU ARE FORCED TO, NOT WHEN YOU CAN. Let us see what went wrong with one of the portfolios that I used to know. The client was very conservative and had built a good portfolio over a long period […]
I am not an advocate of direct equity investing, but that means nothing!! Many of the readers of this blog are direct equity investors and many many more will become one in the days to come. A few years ago I remember reading a private research report saying that about 100,000 Indian families have benefited […]
A couple of days ago I did a post saying ‘markets are up buy 40%’ – to which a couple of friends called up and said “Hey thanks to you my portfolio went up by 55%’. Thanks guys. The minute you told me that I was reminded of the donkey story. http://www.subramoney.com/2009/02/relationship-manager-fund-manager-or-magician/ This is not […]
I have said this many times, and am repeating it. Repeating it again (tautology, I know). If you hold a portfolio over a long period of time you will get returns in the early double digits. However this will not happen in a nice smooth linear fashion. One of the years that you held the […]
When it comes to buying any asset – I am using it loosely there is a tendency to borrow. Borrowing actually helps you immediately by allowing you to buy beyond your means. The problem with most things we buy is that once we buy it, it ceases to hold any attraction for us. That is […]
How will the markets be? He thought for a little while and said “It will be Volatile” – this answer is at least 100 years old. It was given by J P Morgan. And this answer is true today, and will always be true. After all prices are a function of exchange rate, demand, supply, […]
All investors are value investors. Or they at least like to believe this – so let us see why V. I. is so difficult to achieve, even though philosophically it is easy to understand. You just need to be buying when everybody is selling, it is so simple!! Well one amazing sentence that ‘market experts’ […]