Archive for the 'Economics' Category

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 […]

India is not inexpensive!

For all those people who think that doing business in India is worthwhile because we are an inexpensive destination, please think again. Let us go to the basics of Economics: there are 4 factors of production needed for an enterprise – land, labour, capital, and entrepreneurship. Land: by no stretch of imagination is land cheap […]

What is inflation Risk?

  I have referred to investment risk very many times in the past. This is a really scary risk in the Indian context NOW, as the inflation rates are sky rocketing. What exactly is Inflation risk? Inflation risk is the danger that an increase in price levels (normally for a sustained period of time)  will […]

Impact of fear on your portfolio

There is not enough literature or education of how to handle your portfolio during your withdrawing phase. This is obvious – there is no money to be made withdrawing from your portfolio. There is a lot of money to be made while you accumulate it, but NIL when you are withdrawing it. Fair enough, right. […]

What is safe leveraging?

Let us get it right, the real rich do not borrow. Never ever for personal expenses, buying assets or personal INVESTING. Borrowing and investing is a very foolish thing to do for most people. Will a Mukesh Ambani or a Kumar Birla take a personal loan to buy shares? Tough to answer this question? No. […]