A blog which periodically revisits evergreen investment principles!

Tag: Investing

The art of Bad-vising

By Ankur Mahajan, [email protected]

“We’ve done a lot of stupid things but we’ve avoided a small subset of stupidity and that subset is important. It’s about avoiding the dumb things” – Warren Buffet

There have been a considerable number of arguments and an equal number of blogs and posts written about the plight of a retail investor. One of the prime subjects have been the many grounds where a typical investor conks out to make returns in the market. “Market makes returns, but the investor doesn’t” has become the slogan of the Aam Investor (on the lines of aam aadmi). And there have been umpteen reasons attached to the same. Some of them being getting carried away by greed and fear, investing after the bull run, redeeming during the bears, chasing fancies, investing without understanding, etc. While it is easy to blame the investor on the lines of an aam aadmi who pay taxes but abstains from voting, there is a compelling need to question the role of your advisor and his ability to avoid deviating from the fundamentals.

While we are sleeping

By Ankur Mahajan, [email protected]

“Thoda market ko stable hone do, phir invest karenge” , exclaims a potential investor being chased by every salesperson of a financial intermediary in these dampened markets. In hindsight, the salesperson is offering the sanest advice to invest especially when the markets are battered and bruised. However, the person who was thinking to invest has never run out of reasons for his preference towards real estate and gold over equities. His primary reason of abstaining from equities is waiting for the Indian markets to resuscitate. While equity Investor continue to sleep and invested heavily in gold and real estate, the markets are offering them umpteen hints to resume investing.

Investing for Beginners & Finding our own Investing Style

By Raunak Onkar, [email protected]

When a lot of people first start to read & learn about investing they invariably end up reading about Warren Buffett in their first few weeks of reading. From there onwards begins this fairy tale dream ride into the idea that someday they can also invest like Warren Buffett. The next automatic step that people tend to take is to read what any other fund manager worth their salt has to say about Warren Buffett. To remind you, at this point there is not a single rupee invested by this person, ever in his life (apart from may be the automated Fixed Deposit certificates & PPF investments).

After having read & being enamoured with Warren B’s performance & his dazzlingly simple explanations of how he analyses businesses, people start with the notion that investing is an easy affair. By this time, the activity of really sitting through an entire market cycle not being able to find great investment opportunities or even spending huge amounts of time & effort in researching industries & their managers has never happened to them.

Mutual Fund Scheme Selection : A Do-It-Yourself Kit

By Jayant Pai | [email protected]

Choosing good mutual fund schemes is not an easy task for beginners. The same applied to me too. I too have undergone many teething troubles before finally honing in on a few rules which work for me. Initially, I relied on the advice of others, but my entire investing approach changed when I subscribed to a highly reputed magazine meant for serious investors. Today, my scheme selection process is a distillate of of several intrinsic and extrinsic factors. Here are a few of them:

Getting it wrong

By Raunak Onkar | [email protected]

Investing requires a lot of conviction. Especially in equity investing where the future outcomes of any business are uncertain & many variables can affect business performance in the long run. In such a case conviction is a good currency to have.

But what is this conviction made of?

Conviction is to believe that something is right by judging the facts which we gather after going through available data. Why do we believe that something is right? Well its tricky to answer it this way. So we can try and invert the problem into thinking – why do we get things wrong? To put it into context, why do investors make mistakes?

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