Archive for the 'Equity' Category

What to look for in a company…

Many a times I have been asked what to look for in a company before you decide to buy a share. Let me tell you what I was asked to do by an FII running an International Blue chip fund. Their definition of blue chip did change from market to market and the markets that […]

Investment Experience learning…

Some of my learning from investing: If your family is not risk oriented / risk understanding it is difficult for you to invest / trade in equities. Investing maybe a part time activity, but equity trading is a full time activity. If you cannot make equity trading your full time activity, DO NOT make it […]

Value Investing is not so easy

When people get fancy degrees in investing, they get trapped in jargon. Luckily for me I got into investing before I had any degree. Let us look at some of the jargon. Value Investing vs Growth Investing: All investing is value investing. You put Rs. 100 today hoping to earn more than Rs. 100 over […]

Fundamental Analysis or Technical Analysis? What works?

What is the PE ratio? Ask a Fundamental Analysts and he goes gaga over PE and how it is the best way to decide whether to buy or sell. Great. However when a FA comes on Television he also uses words like “but the share has been heavily oversold”. The anchor in all earnestness goes […]

Equity is a long term vehicle

Many people (sadly including CIOs of mutual funds and life insurance companies) think that 2-3 year schemes in equity makes sense. Hence a rash of close ended mutual fund schemes, and almost none doing well – except by a timing accident. A few days ago I profiled a few of my HNI readers – very […]

Market is simple to understand

The equity markets are simple to understand except if you try to use too much intelligence. The markets (internationally) is driven by various factors – macro and micro. The 3 important factors that one speaks of while talking market valuation are Fundamental, Technical, and Market Sentiment. Remember understanding equity markets is very complicated if you […]

How Investors lose money?

One very important reason for people to lose money in the stock market is SELLING WHEN YOU ARE FORCED TO, NOT WHEN YOU CAN. Let us see what went wrong with one of the portfolios that I used to know. The client was very conservative and had built a good portfolio over a long period […]