The banking industry is a very funny one – whose basis for lending is that of insecurity. A smart individual investor can use it to his advantage to create wealth. In a consumption oriented and growing economy, most households have some exposure to debt of some kind – the most common being housing loans and … Read more
“If the reason people invest is to make money, then in seeking advice they are asking others to tell them how to make money. That idea has some element of naivete.” – The Intelligent Investor Every few weeks, Saturday mornings are reserved for the barber. Today was one of those, so my son and I … Read more
“Once the investor is willing to forego brilliant prospects, i.e. better than average expected growth, he will find no difficulty in finding a wide selection of issues meeting value criteria.” – The Intelligent Investor A couple of days back I was privileged to watch one of the best recent displays of classical Test Match batting … Read more
Dr Edward De Bono came up with a famous theory of the six thinking hats, as a tool for group discussion and also individual thinking – as a means to think from all angles, more effectively, and to come up with successful decisions. The contention of the six thinking hats is that the human brain … Read more
There is a stark similarity between what I reckon to be the driver of success in investing as well as superlative achievement – the single magic phenomenon of compounding. Everyone knows that Einstein called compound interest the eighth wonder of the world. There is also the story of the poor farmer who robbed the rich … Read more
“A truly conservative investor will be satisfied with the gains shown on half of his portfolio in a rising market, while in a severe decline, he may derive solace from reflecting how much better off he is than many of his more venturesome friends.”- The Intelligent Investor The best portfolio strategy for an individual investor … Read more
“Are there better than average funds and can the investor select these so as to obtain superior results for himself? Obviously, all investors could not do this, since in that case we would soon be where we started, with no one doing better than anyone else.” – The Intelligent Investor For the equity part of … Read more
“The standard policy of people all over the world, who mistrust their currency has been to buy and hold gold.”- The Intelligent Investor “You can fondle it, you can polish it, you can stare at it. But it isn’t going to do anything.” That’s what Warren Buffett had to say about gold. Essentially it is … Read more
“Researching and selecting your own stocks is not necessary; for most people, it is not even advisable. However, some investors do enjoy the diversion and intellectual challenge of picking individual stocks – and, if you have survived a bear market and still enjoy picking stocks, then nothing that Graham or I could say will dissuade … Read more