“The point is, ladies and gentleman, that greed, for lack of a better word, is good.” – Gordon Gekko
“Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful.” – Warren Buffet
Greed may have been good for Gordon Gekko (at least for a while), but in the investment world it rarely is as Warren Buffett is famous for saying.
Investors are unequivocally greedy today, and with some perspective it is hard to blame them. Continue reading “Greed is Good ?”
RISK is a four letter word and been fancied these days. Everyone knows about risk and every firm is accompanied has best process, best standards, best people till the time an incident or big impact is not been made.
The recent example of fine imposed by the US authorities on various Investment banks like BNP PARIBAS SA, BANK OF AMERICA, RBS, HSBC, STAN CHARTED, ING, J.P. MORGAN are some of the examples of the above. Corporate are heavily investing in the compliance and in the risk management department but they forget to invest on the employees.
Risk management has become a key function in almost every large company, but all too frequently it makes an organization so risk-averse that initiative and innovation become paralyzed. Continue reading “Risk Management should be an Integral part of Corporate Culture”
Not many people know about the convictions behind how MF global failed. This is how the destruction process works @ Wall Street and MF Global bankruptcy was one of the example of it.
They were very bad in Europe; leveraged 33:1 so there is no space of error when the firm is leveraged like that.
The three lessons that are can be shared from MF Global’s death:
- Accounting loopholes have to be closed and oversight improved.
- Non-bank financial firms should have a lead regulator.
- Rule-writers should consider “non-systemic” firms as well as “too big to fail” banks.
But there is a contrast view to it:
More regulation, more rules, Dodd Frank/EMIR/FATCA and to no purpose at all.
A banker wants to bet his firm on the direction of sovereign debt. If successful, we call him Soros and pat in him on the back. And if not, the firm is closed down. Regulations were pointless, because no rule book can reign in human ingenuity. Continue reading “How MF GLOBAL Failed”
As the Year end approaches people start inquiring about the tax saving plans and want to invest their money now to save tax. I have been approached by many of my friends and colleagues, they want to do everything now SIP, ELSS, Insurance?
Can you do financial planning in adhoc mode? For me it’s a big no. People end up buying either the most misssold ULIPS or may be some insurance plan.
The Term Financial planning is mis-directed, mis-guided and mis-selling lead to many such situations. I always encourage SIP between my fellow mates, whosoever asks me to invest the savings.
Systematic Investment Plan is an approach to investing within Continue reading “Systematic Investment Plan: SIP”