Blog Posts - Investment Philosophy



3 Things All Self-Directed Investors Should Know

There are two ways you can invest your monthly/quarterly/annual savings - the easy way and the hard way.The easy way is to get hold of an experienced financial adviser and follow his investment advice. The hard way is to take charge of your own...

The Ultimate List of Painful Financial Mistakes

Warren Buffett is arguably the greatest stock investor that ever lived. He didn't become so by chance but by learning the ropes from his guru, Benjamin Graham, and by following a few basic investment rules.Two of his most famous rules are:-Rule No. 1...

Sunday musings: Lord Ganesha's lesson on preservation of wealth

There are several mythical tales about Lord Ganesha - most of them about how he got his elephant head, why one of his tusks is broken, why a serpent is wrapped around his waist.The one that has relevance to modern life is how he taught Kubera a lesso...

How to find under-valued stocks (even when a stock market is trading near its lifetime high)

The Indian stock market has rallied almost 30% from its Feb '16 low and is within hand-shaking distance of its lifetime high touched back in Mar '15.Many stocks are touching 52 week highs on a daily basis. Some have touched their lifetime highs. ...

Is stock investing risky?

To be able to answer that question, one has to understand the meaning of risk. The problem is: there is no clear cut definition of risk, or the best way to measure risk.Volatility is often considered a measure of risk - particularly by inexperienced...

How to do 'due diligence' before buying a stock

The Indian economy is back on the growth path. Liquidity is sloshing around. FIIs are buying. The stock market has shaken off the bears and is rising towards its lifetime high. You are either a smart investor who entered at lower levels and are...

3 Timeless Investment Principles

In his well known investment book "The Intelligent Investor", Benjamin Graham has explained several investment principles that have withstood the test of time.If you haven't heard of Graham, he is considered the 'guru' of value investing and was a te...

Are the movements of a stock market index predictable?

That may sound like a strange question coming from some one who regularly writes about the movements of Sensex, Nifty, S&P 500, FTSE 100. Nevertheless, it is a pertinent question.Many small investors spend an inordinate amount of time and energy...

How to avoid buying near a market top and selling near a market bottom

Common sense suggests that investors should buy near a stock market bottom and sell near a stock market top. But time and again, investors do just the opposite. They buy near a market top and sell near a bottom - losing their savings in the process.W...

Want long-term happiness over short-term thrills? Buy experiences, not things

Many small investors enter the stock market with the hope of making some quick gains. They may have heard stories from their friends or colleagues about making a killing in a sugar stock that quadrupled in 6 months, and want to jump on the bandwagon.

A 4-Step Guide to Growth Investing

Try this social experiment with some of your friends or colleagues who regularly air their views about the stock market. Ask them why they invest in the stock market.Chances are, they will look at you as if you are an alien from another planet. Most...

Sunday musings: Mind over Matter

The phrase 'Mind over Matter' can be used in different contexts. As per Wikipedia, a similar phrase 'the mind drives the mass' was used by the poet Virgil in 19 BC. In parapsychology, the phrase has been used to describe paranormal phenomena. In...

Does your Investment Style fit your Personality?

To be a successful investor, you must have your own investment style. That means evolving a system that works for you - by figuring out your own strengths and weaknesses and keeping a record of your successes and failures.Every person has personality...

How many Mutual Funds should you hold to adequately diversify your portfolio?

If you ask that question to your friendly fund agent, he may say: "The more the merrier. The more funds you have the more diversified will be your portfolio." From his point of view, the answer may seem logical. If you listen to his suggestion,...

Why you need the resilience and discipline of a door-to-door salesman to succeed in the stock market

If you are thinking: "What on earth is a door-to-door salesman?" then you probably belong to a generation that has never seen 3D picture discs in a View-Master or listened to a 78 rpm vinyl record on a gramophone. In which case, you have obvious...

8 Signs of a Doomed Stock

Let me assume that you have been following my posts regularly, and are no longer swayed by stock market cacophony and 'expert tips' sent by SMS to your smart phone.You have been doing due diligence and picking stocks based on solid research. Already...

Day Trading Strategies for Beginners

The post title is a bit of an oxymoron - because beginners should stay as far away from day trading as possible. Why? Because to make money on a consistent basis from day trading, one requires two important skills:more than a working knowledge of tec...

8 Common Investing Mistakes and How to Avoid Them

There is an oft-quoted stock market adage: There are two kinds of investors in the market - those who have money and those who have experience. The ones with the experience get the money. The ones with the money get the experience.The stock market is...

A 7-Step Guide to Value Investing

If you enjoy the thrill of making some quick profit from the stock market by booking trading profits of Rs 2 or Rs 3 per stock then you will save time and effort by reading no further.But if you are interested in building wealth over the long-term -...

Want to be a successful long-term investor? Act like a professional golfer

For the uninitiated (and the disinterested), here is a brief outline of the career progression of a typical professional golfer:an early interest in the game from a father who plays golf and/or proximity to a public golf courseinterest turns into pas...


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