The sophisticated investor is an IDIOT too!

The joke I often hear in the market is ‘sophisticated investor’ aka ‘big investor’ or what have you. The assumption is: he is a big rich man (true) has access to the finest investment brains (not always true) he checks with the smartest people about ALL his deals (not always true) he has controlled is […]

Tackling confirmation bias

I walk into a class of advisers / investors / students and ask them one question. The answer I get ranges from Rs. 2 crores to about Rs. 200 crores. It is wrong of course. I then ask them ‘How wrong do you think you can be’ and for that the answer is ‘In a […]

Forthcoming Bear market

I hate people who ask me “What do you think the market will do next”? The hatred is on the people who keep repeating this question knowing that I belong to the Peter Lynch school that “only the company matters, the surrounding area does not matter”. The sensex is at 36000. For it to be […]

Retirement complexities

Retirement has not changed, it has been turned on its head. The sad part is that Namo has not even mentioned ‘Retirement Time bomb’ even once in any of his speeches. We are really running out of time – we are pretending to sleep. No way somebody can wake up a person pretending to be […]

Credit score 101

Have you ever tried checking your Credit score? Just like that? Well I did, and I was told it is 850. This is good, and for me of just pure academic interest. However, a good credit score (read: anything over 750) is good and will help you get loans cheaper, clear security checks, visa, job […]

Achieving your financial goals

This is partly true, partly hypothetical. One young girl – aged 31 years – married and the mother of 2 children came to meet me regarding her portfolio. She wanted to get 15% return on her equities. Permanently, year on year. I then had to explain that 15% average is possible, but there is something […]

Markets are not easy to stay on…

You should read Investing Fables by Damodaran. Assuming of course that you have not ever read it. If you have, you must re-read it. Let us look at some of the myths of investing…. Actually all of them are true, however, the catch is that sometimes it may not be true. Shares always outperform bonds […]