It’s been observe that people find investing as one of the difficult task. Either they end up depositing all their savings in fixed deposits, gold or they become the scape goat of ULIP (insurance).
Moving on to some quotes on the investing and financial markets that might change the perception of yours. There isn’t right and wrong, there is two sides to the coin, but rich dad exists on only one side of the coin, the business and investor.
Yes, there is some risk involved with investing, and it can be scary. But if you don’t take control of your cash and moves forward you, well those are famous ones from Rich dad -Poor dad. Continue reading “Why investing is difficult?”
Starting with Nassim Taleb’s sardonic story about forecasting. As the tale goes, a trader listened to the firm’s chief economist provide a forecast about the markets and then lost bundle acting on it, getting him fired. The trader angrily asked his boss why he was fired rather than the economist, as the economist’s poor forecast led to the poor trade. The boss replied, “You idiot, I’m not firing you for losing money. I’m firing you for listening to the economist.”
Here is a different sort of “top ten” list of interrelated investment insights and recommendations – mistakes that are both common and deadly – for us to try to correct for 2015 and beyond :-
- We don’t prioritize properly in financial planning: Your savings rate is far more important than your rate of return in determining how bright your future is likely to be. However, we are far more likely to obsess over squeaking out a bit more performance out of our investments rather than thinking about ways to save more. Continue reading “Mistakes that an Investor keep on repeating”
India definitely a country for future, when the world is slowing down India will outperform the global markets. These are some of the financial headlines that push people to be in markets.
So if somebody asks me – Is this the best time for the investment? My generic answer is I don’t know. To be honest whenever you have money that’s always the best time to invest. If you try to time the market – you are gone unless you a lucky fool. Because the unlucky genius have always failed in timing the market .
Typically I do very less articles on personal finance and I would like to argue today when is the best time to invest in the stock markets? It is said that “Good returns are seldom made on investments made in good times. Continue reading “Is this the best time to invest?”
When someone takes short-term position in stocks and suffers loss, He will not book loss against it rather say I am a long-term investor now. The truth is saying “I’ll be greedy when others are fearful” is much easier than actually doing it.
Here are some more points from my previous posts ensuring why investors go wrong most of the time.
- The gulf between a great company and a great investment can be extraordinary.
- Not a single person in the world knows what the market will do in the short run. End of story.
- The analyst who talks about his mistakes is the guy you want to listen to. Avoid the guy who doesn’t — his are much bigger.
- You don’t understand a big bank’s balance sheet. The people running the place and their accountants don’t, either. Continue reading “The ugly truth about Investing”
I am personally inclined towards behavioral finance, as it has continuously challenged the conventional financial theory of rational wealth maximizers.
The irrational financial decisions, emotions and psychology have taken over the field of finance.
The very famous Aswath Damodaran says, the equity risk premium is the key to investing & valuation.
Ben Graham told once Mr. Market is there to serve you, not to guide you.
In the Taleb’s language you buy – sell or you make omelette out of it depends upon your luck, randomness, Probability, Belief, conjecture, Theory, Forecast and Anecdote.
The most crucial investing question that I have noticed is: Do you know your time frame? Continue reading “Investing facts and Behavioral Finance”