“The most realistic difference between the investor and the speculator is found in their attitude towards stock-market movements. The speculator’s primary interest lies in anticipating and profiting from market fluctuations. The investor’s primary interest lies in acquiring and holding suitable securities at suitable prices. Market movements are important to him in a practical sense, because … 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
“Aside from forecasting the movements of the general market, much effort and ability are directed on Wall Street toward selecting stocks or industrial groups that in matter of price will ‘do better’ than the rest over a fairly short period in the future. Logical as this endeavor may seem, we do not believe it is … Read more
“The investor must demand a satisfactory ratio of earnings to price, a sufficiently strong financial position, and the prospect that its earnings will at least be maintained over the years. This may appear like demanding a lot from a modestly priced stock but the prescription is not hard to fill under all but dangerously high … Read more
“The investor with a portfolio of sound stocks should expect their prices to fluctuate and should neither be concerned by sizeable declines nor become excited by sizeable advances. He should always remember that market quotations are there for his convenience, either to be taken advantage of or to be ignored. He should never buy a … Read more
“Basically, price fluctuations have only one significant meaning for the true investor. They provide him with an opportunity to buy wisely when prices fall sharply and to sell wisely when they advance a great deal. At other times, he will do better if he forgets about the stock market and pays attention to his dividend … Read more
“Can you guarantee it?” asked my friend Swami, when my broker Jigneshbhai asked him to hold on or add to his investments saying that markets will recover. Jigneshbhai said, “Boss, there are no guarantees, but they should recover eventually.” Swami continued, “But when? For the last 4 years, the returns on my investment are less … Read more
“The true investor scarcely ever is forced to sell his shares, and at all other times he is free to disregard the current price quotation. He need pay attention to it and act upon it only to the extent that it suits his book, and no more. Thus, the investor who permits himself to be … Read more
A lot of financial planning is geared towards basically creating a corpus for a goal like retirement which can replace your current income stream in inflation adjusted terms. And it is all good when they profess getting out of debt; preach high rates of savings that are put in a manner across asset types to … Read more