Comments on: Theory vs Practice of Investing…

By: Nagarajan

Nagarajan — Sat, 18 Aug 2012 14:38:45 +0000

As what Dr. Chandrashekhar says all the Beta, Alpha, Gamma ratios go for a toss when the market goes into free fall. Someone coughs in US and we all catch a collective cold.

To add to the confusion, all the financial news channel anchors and the investment websites have their own number crunching as to what works and what does not. Something like a pre-election poll. No one actually has a clue.

As Mr. Subramanyam keeps pointing out steady, disciplined investment in well managed funds over a period of time definitely yields better returns than churning the portfolio and doing day trading and calling it investing. Bangalore Turf Club would probably give better results!

By: Vandhana Karthick

Vandhana Karthick — Wed, 15 Aug 2012 15:53:18 +0000

Kindly give the contact information of that Advisor which you mentioned in point no.3

By: Dr M Chandrashekhar

Dr M Chandrashekhar — Tue, 14 Aug 2012 00:53:29 +0000

Yes– I appreciate that.

What I meant in my post was –Market is a complex factor– so many unknowns even if I pore diligently into balance sheets with my thick glasses.

Whilst I was investing in Stocks, lady luck happily smiled on me but I knew I was walking on thin ice. Moved on to MFs keeping my age profile & a stern warning from my spouse.

Presently, happy with MFs– hope Prashant Jains & Sukumar Rajas to continue working hard to ensure that I make my money !

By: GBJ

GBJ — Mon, 13 Aug 2012 20:01:39 +0000

Markets can modify behaviour in short-term positive ways that are simultaneously long-term negative ways. Hence, not confining to any one theory and always keeping options open is useful. Great piece!!! Hats offf!!!

By: subra

subra — Mon, 13 Aug 2012 13:40:27 +0000

Shinu

Wealth is not created by advisers alone. Clients have to have the guts to take calls, hold, take risks and then gets returns. Anyway he is not looking for clients.

Dr. C’shekar: we underplay the role of luck,and over play the role of skill. A CA degree is just a tag which says he understand accounts, but people have to have an aptitude for wealth creation.

Agree broadly with Pandu.

Over educated people do an analysis paralysis. Many a times you need to act with 70% info and 30% gut. Over educated guys wait for Perfect Information. Economic Value of Perfect Information is normally zero.

By: Pandu

Pandu — Mon, 13 Aug 2012 12:49:07 +0000

Most CA’s, have less clue about personal finance. They may be good at accounts & number crunching, but don’t know enough about Personal Finance. Its a myth that CA’s are good at investing. Even Subra himself has said this before. And this extends to all IIT, IIM etc.

In Personal Finance, you require a combination of number crunching, temperament, knowledge of market’s workings (why it busts, why company share value goes up) which comes with experience in markets & ability of think contrary i.e. not conforming to rules (and to think, CA’s are supposed to be very definition of conforming to rules). A CA has an advantage acquiring these skills faster than others, but most stick to number-crunching.

By: subra

subra — Mon, 13 Aug 2012 09:12:16 +0000

if gut feel and luck mattered, great. Let us start publishing the photos and horoscopes of fund managers. I would rather choose lucky managers.

Alas, luck cannot be repeated.

By: Atul

Atul — Mon, 13 Aug 2012 09:09:19 +0000

Would not go for 70% CAGR adviser. Past performance may not reflect future.

By: Sreedhar

Sreedhar — Mon, 13 Aug 2012 08:47:06 +0000

Excellent article Subra sir!

But, will agree to some extent with Dr Chandrashekhar as well. Reminds me of what I read in Random Walk Down Wall Streat!!

By: Mira D

Mira D — Mon, 13 Aug 2012 07:21:32 +0000

points to ponder, subrabhai.