There are many people who come to sell equity schemes…and here is the language they use: 1. Sir ‘Equities have given 20% CAGR in India from 1979 till today including dividends’ – so if you invest in equities for 5 years you will get the same kind of returns. Explanation: Equity returns have […]
When you buy a share, you normally buy to sell the share at a higher price, thus making a profit. However in most cases you may not have a clear target price. This means you need to have a matrix of when to sell a particular share -either time based, p/e based, or price based. […]
Having seen so many amateurs and professionals investing in equities (not talking about traders), here are some big differences. 1. Averaging means ignoring market information: Many people average in a single scrip and this can be dangerous. Examples like Silverline, Shaan Interval, Idbi bank, Moschip, Crest Animation, ..are just too many to be ignored. Yes […]
Actually there are many things that you need to know about the equity markets, but here are a few…. a. Investors make money: Yes, it is the investors who can make money in the equity markets. Very difficult for traders to make sensible money especially over very long periods of time. b. Even Investors make […]
There is no ONE way of building a retirement corpus! Retirement planning is almost like a religion, there are many sects, sub sects, protestants and of course there are the atheists…. Here is one method which has worked very well for a friend. However let me add that he is a brilliant stock picker, has […]
1. You should not fall in love with your stocks: too many of the newbies having ‘read up’ some literature feel that one should not fall in love with your portfolio. Completely wrong. I agree the company does not know that you exist and frankly the company could not care, but it is stupid to […]
India is a savings country. It suits the government very well. Most Indians keep the money in banks, national savings certificates, Kvp. Of course to ‘save’ Income tax they put the money in LIC. When the government gets cheap money it is happy. Of course these days it needs the equity market also has to […]