I have often found that for an individual investor, the toughest thing to deal with in stock markets is volatility. And by volatility – though it means fluctuations on both sides, what is tough to deal with is basically crashing stock prices. Financial theories have often equated risk to volatility. That may have some sense … Read more
Interesting article that I read yesterday on sfgate.com. In an interview that is sure to shake the pillars of Wall Street, billionaire investor Warren Buffett revealed to our crack reporter Kent Baleevit that he actually made his wealth from risky penny stocks and day trading. “C’mon, Kent … long term value investing? Who has time … Read more
At the heart of any investment strategy is a key decision that the investor needs to make right at the start. This decision could change based on life circumstances and priorities (hopefully not based on swinging moods). But once made, it is important for investors to stick to that. And that decision is what type … Read more
It is structurally not possible for mutual funds to implement value investing, in its completeness. Structural Constraints Mutual funds are essentially slaves of their investors and their temperament. Simply because of the structure of mutual funds and the need to beat an index on a monthly, quarterly, annual basis, it is almost impossible for mutual funds … Read more
Warren Buffett, the legendary investor and among the richest people on earth is in India – partly for his philanthropic activities, partly to assess investment ideas in India. But that’s not news. He is already more than a legend, and while his investing styles have been dissected and studied many times over, this being the … Read more
So I have a blog. Is it just another blog? I hope not – but we will see as it shapes up. Often, I have this habit of musing about a number of things close to my heart – like finance and investing, with my wife, family and close friends. So why not try and … Read more
Another weekend another book. This time it was about irrationality and actually how it helps being irrational – The Upside of Irrationality! We are an irrational species, and that was amply demonstrated through a set of experiments that the author conducted over time. Irrationality One of our irrationalities has to do with lack of acceptance … Read more