Not sure how many of you have heard about the book ‘Investment Fables’ – it is a book by Damodaran, and an easy read for the layman. It is not a typical alpha, beta kind of valuation book.
This title may not be exactly appropriate, but it is actually a response to many many mails and responses that I receive. Most of these mails say…”You said so…but this is NOT true”. Let us look at some Investment axioms / myths / beliefs:
1. Over long periods of time equity gives good returns :
a. Subra, over last 10 years (this is long enough, of course!!) I have got only 8%p.a. return – I could have got similar returns in FD WITHOUT THE RISK.
b. I bought Silverline, Shaan Interwell, Indiana Dairy – in the 1990s, am still holding it, inspite of holding for such a long time, I am not making money.
c. I am holding HUL for a long time and do not think it is giving any sensible returns.
d. My father bought shares in 1991 – and he is still holding Mazda Industries, Patheja Forging, etc….these are no quotes for them.
Not sure what answers I should give this person…any ideas?
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