Let not speculation drive your investment. Investment should rise above it. Quick Edit: We always believe it is our investment knowledge that delivers results for us. We overly emphasise on our ability to analyse, sort and select. We think too much of analysis and too little about behaviour. But, long…
When euphoria is near, it is the time to fear. Investors have one perpetual weakness. We actually lack the ability to handle growth. When investments return big, portfolios grow. Investors are often unprepared for portfolio growth. Talking of preparation, investors often get very disturbed by success. In fact, success affects…
In adversity, lies opportunity. Reading is a constant in an investor’s daily grind. Perspectives evolve, ideas emerge and conviction grows when an investor reads the right things. In bear markets, reading about value investing is an obvious choice. Reading about the lives of three of the greatest value investors of…
“The stock market is the story of cycles and of the human behavior that is responsible for overreactions in both directions. “–Seth Klarman The markets always love strong medicines administered on the economy. The bitter they are, the better for the markets. Raising fares, dropping subsidies, removing doles, removing roadblocks…
“Success is 20% skills and 80% strategy.” — Jim Rohn. First we saw the Modi Rally. In that high tide, all boats ( read stocks ) went up. Few stocks like consumption, IT and pharma did not participate. But, these were the bedrocks of the market for a long while.…
When you are surrounded by over exuberance, choose your company well. The stock markets have a strange way of fixing smartness. Its ruthlessness in fixing the over smart is characteristic and legendary. And, how? The overconfident lot tends to corner them so badly that the only option before them is…
“What makes the desert beautiful is that somewhere it hides a well.” The mood is set to soar. Or, so it seems if you watch the markets moves. Somewhere, anticipation is riding high and the markets are dove-tailed deep into it. What one will definitely see is an end of…
“Economies prosper despite politics. Not because of it.” The stock indices traded at a PE ratio of 12-13 during most of 2011-2013. This was a phase when the GDP growth was slowing down rapidly. The markets knew that earnings were bound to decelerate and the index valuations reflected this trend.…
Market sentiment is a poor driver of long term investing. Election euphoria is hardly new to the Indian markets. We routinely go through the emotional highs and lows from the swings of politics. Markets always act irrationally when the source of euphoria is political. While there is no escaping from…
“Almost all Old Money secrets can be traced to a single source: a longer-term outlook.” – Bill Bonner. The political leadership issue is slowly taking a decisive trend. Market leadership always evolves in anticipation of political trends. In that sense, the stock market has been way smarter in making…