When viewed as zcb (zero coupon bond with a 20 year duration) the share (including the mutual fund scheme with Growth option) looks like a bond that has a high credit quality, awesome liquidity, very low friction, a rising coupon and WE HAVE CHOSEN a very long time horizon. By saying that we will […]
This is a wrong headline, let me start by making a confession. I was doing ‘equity valuation’ – a sexy topic always for students and even budding fund managers. The purpose of doing this article was that I was suggesting to the class that valuation always starts with the bond valuation – and then you […]
The media keeps telling you stories of how investors got rich. I have carried an article saying ‘If you had invested Rs. 10,000 in Wipro it would be worth a serious amount today’, right? So all of you investing in shares are expecting to get seriously rich, are you? Well partly yes and partly no. When […]
Actually there are many things that you need to know about the equity markets, but here is a start: 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. However trading is a […]
Some of the questions which I am asked about the equity markets are downright stupid, but here is an attempt to give some sensible answers: Why did the stock market go up (or down) by 700 points today? Correct answer: Stupid woman, nobody knows the answer to this question, will you stop asking this stupid […]
For readers of my blog this must come as a surprise, right? Well I do give this advice to a few people, let me tell you who they are: Those with too much debt: For a person earning X amount per year having housing debt of 3X or 4X does not disturb me too much, […]
The SnP 500 is on a bull run since 2009 and is one of the longest bull runs. It has to end sooner rather than later. In such a market what should one do? Well do not try to remove money and sit in cash waiting for an opportunity, but yes if you are in […]