Latest Entries »

Continuing from the last post on predicting the market from:  the words by John Templeton “Bull markets are born blogon pessimism, grow on skepticism, mature on optimism and die on euphoria.”

You can’t wait to time or predict the market, today is the best time to start investing if you have cash. Cash is a strategic asset.

The sense of pessimism is prevailing all over. Generally speaking the lifespan of investment remain for 30-40 years and to get the opportunity window for investment is bit difficult. Analyzing the Sensex in the last 20 years there has been 3-4 opportunity windows. View full article »

Generally I do not write or analyse on the market predictions. But one of the friend shared a msg on Nifty predictionsblog let’s try to analyse it.

Don’t confuse brains with a bull market….. How much Nifty can rise in current bull market….?

Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria

  – Sir John Templeton 

India has first major Bull market when Sensex moved from 400 in 1989 to 4546 in April 1992 a Rally of almost 1100% in matter of 3 years which will be remembered for Liberalization and reforms by Manmohan Singh . View full article »

Why Investors lie ?

Taken from the Big chill of 1983:blog

Michael: I don’t know anyone who could get through the day without two or three juicy rationalizations. They’re more important than sex.

Sam: Ah, come on. Nothing’s more important than sex.

Michael: Oh yeah? Ever gone a week without a rationalization?

Self-deception is especially costly when it comes to investing. So let’s consider some of the lies that a lot of you may be telling yourselves and the impact they may have on your portfolios.

  • You know what your investment returns are. You would be surprised at how few people actually know what their returns are. Even fewer understand their performance relative to a benchmark. It is not that complicated to correct this. Set up a simple spread sheet using Microsoft Excel or Google Drive or one of the available online tools. View full article »

The single greatest mistake investors make is to extrapolate recent history out into the future. They take the financial blogreturns of the past 5 days or 5 years or even 50 years and assume the next few days or years will look just the same without any consideration for the historical context or conditions that provided for those returns.

They forget that, while ‘history may rhyme, it doesn’t repeat itself’ (Twain). Or that, “the only thing that is constant is change” (Heraclitus). These two famous quotes apply to the financial markets as much as anything.

Ignoring these truths and instead simply extrapolating is why investors are suckered into pouring money into the stock market only after a run of great performance. They believe that the recent gains are about to repeat to their great benefit when they should be thinking about what conditions allowed for those gains to take place and analyzing whether they are still relevant or not. View full article »

Equity investing is something that can’t be taught or learned in a limited period.  It requires time, patience and rules blogthat you can bank on. I shared few principles from the famous book Beating the Street by Peter Lynch few days back. At the end of the book Lynch shared 25 Golden Rules of investing:   (Which is interesting because I count 26)

  1. Investing is fun, exciting, and dangerous if you don’t do any work.
  2. Your investor’s edge is not something you get from Wall Street experts. It’s something you already have. You can outperform the experts if you use your edge by investing in companies or industries you already understand. View full article »
Follow

Get every new post delivered to your Inbox.

Join 1,655 other followers

%d bloggers like this: