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Tag Archive: investor returns


This is a constant discussion that I have been doing with people around me, People admire real estate and  they are blogstill the firm believer that real estate give better returns than any other asset class.

Here am breaking the myth with few examples and facts although the message was forwarded to me on a WhatsApp group and it really make sense:

Film actor Rajesh Khanna bought a bungalow in iconic Carter Road in Mumbai for Rs.3.5 lakhs in 1970. His heirs sold it recently for Rs.85 crores. The property has multiplied by 2428 times or an annualized return of 19.38% over 44 years.  Continue reading

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Liar Liar

It’s always good to read some smart investors who did really well in the past. Here are some other lies that investors blogtell themselves on a consistent basis, including many I’ve told myself over the years:

Who are you ? Are you a Trader or Investor, Most of the post on this blog is written under the background as investors not as a Trader.

If only I would have taken my own advice…

I’m not wrong, the market is. You’ll see.

Investing is easy.

I can predict when the next correction is coming. Continue reading

History shows that mutual fund investors generally increase inflows after observing periods of strong performance. blogThey buy at high prices when future expected returns are lower, and they sell after observing periods of poor performance when future expected returns are now higher.

This results in what author Carl Richards called the “behavior gap,” in which investor returns are well below the returns of the funds in which they invest. Perhaps with this observation in mind, Warren Buffett once said, “The most important quality for an investor is temperament, not intellect.” Continue reading

The single greatest mistake investors make is to extrapolate recent history out into the future. They take the financialblog returns 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. Continue reading

History shows that mutual fund investors generally increase inflows after observing periods of strong performance. They buy blogat high prices when future expected returns are lower, and they sell after observing periods of poor performance when future expected returns are now higher.

This results in what author Carl Richards called the “behavior gap,” in which investor returns are well below the returns of the funds in which they invest. Perhaps with this observation in mind, Warren Buffett once said, “The most important quality for an investor is temperament, not intellect.”

In his wonderful book “The Behavior Gap,” Richards recommends asking three questions before you make investment decisions based on your own or someone else’s forecast:  Continue reading

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