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Tag Archive: Risk


 

BSE has around 4000+ stocks listed but actually traded would be in range of 1000 stocks and NSE has around 1600blog and again actively traded would be close to 100.

There are some dangerous stocks that should not be traded for various reasons as there is no liquidity in them, or they are prone to get delist and there are other reasons as well that might be interesting to read. You may not heard their name as well,

Kappac Pharma: Company with Chronic disease/Pharma name is deceptive and misleading.

Vikas Globalone : Kiska Vikas ? And nothing Global.

Cressanda Solutions: What Solutions? Providing solutions for black money conversion? Continue reading

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In this world of uncertainty where life do not has guarantee, people aspire for guaranteed returns. The recent posts SONY DSCdone on my blog pertains to are market’s overvalued and volatility .That how a financial television especially is built on the idea of using volatility, wherever it may be, to capture eyeballs

The Warren buffet latest (2015) letter to the Berkshire Hathway shareholders is a great – great read especially from the page 24 onwards. Here is the link Berkshire Hathway Letter
Some of the smartest blogger have shared their thoughts on the volatility & risk from the letter .

Josh Brown writes:-
The modus operandi of a lot of Street denizens is to present something as a problem for you so that they can sell you the solution. By putting the fear of volatility in front of you as though it’s a serious long-term risk, the door is then opened for all manner of high-cost, horrifically ineffective products or strategies. My partner Kris likes to say “the easiest way to sell someone a map is by first convincing them that they’re lost.”  Continue reading

Monday Thoughts :)

Very Good morning to all my readers, Last week was an event full week in India.IMG_20150302_084856

Union budget and Railways budget both presented in the parliament. I would not do any more analysis on them as the media has already done the need full.  Let’s start with some motivational thoughts to get in to the week  :

  • Success is the ability to go from failure to failure without losing your enthusiasm.” – Winston Churchill
  • The challenge is not to manage time, but to manage ourselves.” – Steven Covey
  • When it doesn’t matter how much the drinks cost, it’s always happy hour.
  • Associate to Analyst: “My Tuesday night is your Friday night.” ED to Associate: “My bar tab is your paycheck.”
  • One machine can do the work of fifty ordinary men. No machine can do the work of one extraordinary man.” – Elbert Hubbard
  • Continue reading

Mutual Funds are subject to market risk. Please read the offer document carefully before investing”. The very blogpurpose of this disclaimer is to meet the statutory requirements. Only very few people would have heard it when it is mentioned in the radio or television as it flashes by at lightning speed. In print media (Newspaper, Magazines) it is published in extremely small font. Only investors who know the statutory requirements would even be aware of the statement because the advertisements, with ‘namesake’ disclaimers, are hardly educative.

So, what is the mystery behind the ‘flash’ statement? The statement means that mutual fund scheme invests the money collected from investors in instruments which are subject to market risk. Every investor of a MF should read the offer document carefully before they invest their money with the fund house. Continue reading

The risk/return trade-off could easily be called the “ability-to-sleep-at-night test.” While some people can handle blogthe equivalent of financial skydiving without batting an eye, others are terrified to climb the financial ladder without a secure harness. Deciding what amount of risk you can take while remaining comfortable with your investments is very important.

In the investing world, the dictionary definition of risk is the chance that an investment’s actual return will be different than expected. Technically, this is measured in statistics by standard deviation. Risk means you have the possibility of losing some or even all of our original investment. Continue reading

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