Archive for the 'Economics' Category

Living frugally will not make you rich

I got this on Google…and I think the original is in Mr. Moustache..so thanks. See the picture properly, only the bottom 2 can be got with money. I know one very insecure person almost 60 years of age who desperately tries to look rich (his networth will not live him 2 months without his salary, […]

Narendra Modi and his economic policies

As a rule I do not like to write political blog posts. It is not that I have not done it, but I do not like it… In 2014 when we voted Na Mo to power we surely expected to see some changes..let us see what state are we in today. Enough time has passed […]

Na Mo and the banks…

We still do not know what happened at the banking conclave…or the ‘Gyaan Sangam. Hopefully some manthan must have happened and some amrut may have flown… What he spoke at the Icici function was 1. use cashless transactions – that will reduce black money. Fantastic. Since Na Mo cannot bring back that small amount lying […]

Behavioural Finance: What is Sunk Cost Fallacy?

One very important fallacy is called the ‘Sunk cost fallacy’ – which makes us throw more good money after money already gone bad. Typically a lender keeps lending money to one customer hoping that this will enable the borrower to do well and repay ALL the money. Another manifestation of this is called ‘Averaging’ – […]

Remember these golden words

Seth Klarman, a living legend in the Investment world, said in one of his newsletters, early this year: Someday, financial markets will again decline. Someday, rising stock and bond markets will no longer be government policy – maybe not today or tomorrow, but someday. Someday, QE will end and money won’t be free. Someday, corporate […]

Excuses for not investing

Except investing more and investing for a longer period MAN will do anything to increase his wealth. Fairly obviously the person who starts early, invests more, for a longer period WILL have more money in the corpus assuming the same CAGR. SO a person who starts at age 23 investing Rs. 3000 a month – […]

Smart equity reactions…..answers

On 31st August I had posted 2 questions…asking how do you think the reactions were.. Well in the first case when the FII threatened the management with dire consequences, the FII thought that the management would fall at its feet. However the broker knew one big limitation that that particular transaction had. So the brilliant […]