You have some money in your bank. You decided to invest some money in the common stocks. You have reached on this decision as you want to have more income than if you would these funds in other way .History might be irrelevant to most of you but we compare the returns by looking at the past. It’s more fun and interesting to find some excellent companies in the market. Valuations may matter but that’s secondary to identifying the top-notch business. Here are some questions by Philip A. Fisher that will help in identifying the common stock with uncommon profits 🙂
- Does the company have products or services with sufficient market potential to make possible a sizable increase in sales for at least several years?
- Does the management have a determination to continue to develop products or processes that will still further increase total sales potentials when the growth potentials of currently attractive product lines have largely been exploited? Continue reading “Common Stocks and Uncommon Profits”
The post is about entrepreneurship in India where I have tried to put the views.
From the last couple of years Baba Ramdev, Kishore Biyani, Vijay Mallya and Govt. Of India has been making the news and there is lot more things common between them.
Lets begin with Baba Ramdev who became a household name by selling the benefits of yoga to the masses. He claimed that even diseases like cancer could be cured through yoga. Those who have seen his yoga Continue reading “Jack of all or a Master of one”
Exactly a month back I did a write-up on Fixed Maturity Plans V/s Fixed Deposits where both the instrument are issued by different authorities i.e banks and mutual funds.
Today’s write is concentrated on Mutual funds schemes, I came across Capital Protection Oriented Schemes (CPOSs). As the name suggests, the mainstay of such schemes is to provide capital protection. Structurally they are similar to another existing mutual fund category called Fixed Maturity Plans (FMPs), which has been around for a while. For investors, the presence of these categories which are structurally similar, yet distinct in terms of positioning can be confusing. Continue reading “Fixed Maturity Plans V/s Capital Protection Oriented Schemes”
On an average the Indian market has given a 19% return in the last financial year that is the 3rd highest return after Egypt & Brazil who gave the better returns. The underlying is how many made the money because the markets where volatile , ruthless and driven by crisis over the year.
Wondering whether the 20 golden rules holds true for today’s market scenario :
- Your investor’s edge is not something you get from Dalal/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.
- Over the past 3 decades, the stock market has come to be dominated by a herd of professional investors. Contrary to popular belief, this makes it easier for the amateur investor. You can beat the market by ignoring the herd.
- Often there is no correlation b/w success of a company’s operations and the success of its stock over a few months or even years. In the long-term there is 100% correlation b/w the success of the company and the success of the stock. This disparity is the key to making money: it pays to be patient, and to own successful companies.
- You have to know what you own, and why you own it. “This baby is a clinch to go up!” dosen’t count.
- Long shots almost always miss the mark
Continue reading “Investing in the Market : Recalling The Golden Rules of Peter lynch”
Yesterday was going through a case on the art auction valuation under matters of pinion an article in Economist,where the UK
High court has passed the judgement against Sotheby’s the leading art auction house where Lord Coleridge claimed that the auction-house expert, Elizabeth Mitchell, was negligent when she gave an auction valuation of a treasured family heirloom. The historic gold chain of office had been in his family for generations, and the Coleridge’s (distant relatives of the poet Samuel Taylor Coleridge) believed it dated from the mid-16th century. Lord Coleridge had expected that the estimate for his rare Tudor jewel would be £500,000 or more. Ms Mitchell, however, proposed that it was from the late 17th century, and gave it an estimate of £25,000 to £35,000. This, Lord Coleridge claimed, had cost him a good deal of money. He sued for £415,000, the case is interesting and bit difficult to understand Caveat Vendor
Here are some thoughts on the why Art as an alternative Investment has become so popular and its bit complicate to understand the market, the auction houses and the pricing, Continue reading “ART TREATED AS AN ALTERNATIVE INVESTMENT”