Archive for the 'Equity' Category

Sir John Templeton’s Investment rules 3 and 4

No.3 REMAIN FLEXIBLE AND OPEN-MINDED ABOUT TYPES OF INVESTMENT Investing is very difficult because most of us lack the discipline to do asset allocation SCIENTIFICALLY. On a random basis we do some asset allocation, but we are a victim of our habits. So if we are used to equity investing and we start enjoying that, […]

Why Equity markets out perform Bond markets? Part 1

Bond traders and Equity traders are so different! When you meet the two of them in different groups, you wonder how a CIO handles both these animals! Most myths around the world are that ‘Bond traders’ are smarter than their Equity counterparts. Well, lets not get into banana peel area! Why equity out performs bonds […]

When to sell a share?

I am asked this question very often. Typically it is “I bought GMR infra for Rs. 70, now it is 8 what should I do?” or “I bought Jain Irrigation DVR for Rs. 54 about 3 years ago it is now at Rs. 57 what should I do”. This request comes in the form of […]

Equity market advisory…

I am not a big advocate of stock market advisory. Just too much about stock market investing has to be LEARNT and very little can be taught. There is too much of common sense. Some of it looks like it is ‘obvious’ but I have seen too many people fail doing even this. So here […]

Inherited portfolios….

When people inherit a portfolio and it is small, they should sell it off and invest it in mutual funds. I strongly believe in this. What should you do if it is a reasonably big sized portfolio? Should you let it lie and ‘hope’ it will continue to do well without the love and attention […]

My holy grail of investing

Trying to talk to wannabe investors is getting very difficult. People come with a pretty bruised life. They have lost money in options, they have lost a lot of money in trading, they have a ‘portfolio’ which is really a dhobi list of a few shares bought, and there is no logic. They have made […]

Life of an equity analyst

I can assure you life as an equity analyst is not easy. It was not easy in the 1980s when I was starting life and it is not easy now. The kind of expectation that we put on an analyst to give a call is not funny. I am talking of both the sell side […]