What is an IDR? IDR is Indian Depository Receipts issued by a domestic depository in India and denominated in Rupees. It represents an ownership interest in a fixed number of underlying equity shares of the Issuing company. These shares are called Deposited Shares. Why should a company issue an IDR? A foreign company which cannot […]
This is an old idea – many people have said it. Particularly Peter Lynch has said this many times – buy things you are familiar with, what you cannot describe in a picture is not worth buying, etc. There is of course a lot of justification to own shares like Gillette, Colgate, Hindustan Unilever, ITC, […]
Partial booking of Profits is a MUST! – my broker’s favorite statement! I seek to invest in dividend yield stocks, believe in Buffet’s theory that “a share should be bought forever” and at the same time a proponent of booking partial profits on a winning position. Especially if a small-cap stock is up significantly, locking […]
One very important fallacy is called the ‘Sunk cost fallacy’ – which makes us throw more good money after money already gone bad. Typically a lender keeps lending money to one customer hoping that this will enable the borrower to do well and repay ALL the money. Another manifestation of this is called ‘Averaging’ – […]
Risk to a great extent is counter-intutive! When the index was 3000 (circa 2002) I would meet bank Relationship Managers and IFAs (Independent Financial Analysts) who would tell me “Sir, I only sell debt funds. They are so secure, and you know last year gilt funds yielded 19% p.a!”. I would gently probe and say […]
Buy Morgan Stanley growth fund. Yes the same close ended mutual fund that people choose to hate. Let us look at the logic. MSGF a fund by Morgan stanley fund house is a good well rounded large cap fund. Whenever a fund house launches itself it starts with a large cap fund. So this close ended fund […]