Archive for the 'Investing' Category

Sir John Templeton’s Investment Rule Nos. 1, and 2

No. 1.  INVEST FOR MAXIMUM TOTAL REAL RETURN When you invest, your ONLY AIM has to be to increase the family’s net wealth over a long term. This means the return on invested amounts after all costs, taxes and inflation.  This is the only rational objective for most long-term investors. Any investment strategy that fails […]

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 […]

Being Humble as an investor is USEFUL

When you invest in the markets there is one solid reason to be humble. At least you are not driven to suicide when you get things wrong. At all points in time you have errors of omission and errors of commission. It is human tendency to think of your mistakes as ‘could have been avoided’ […]

The why of investing…

If you do not know the philosophy of your investing, I can assure you, you are doing a bad job. Not because you want to but you are expecting too much from your brain. Your brain is a bloody lazy organ which does not want to work on a high performance level for too long. […]

Portfolio Construction: steps

What is portfolio construction?  Let me start in the correct order: Setting your Goals Making your Investment Philosophy Statement Understanding Asset allocation Next step is Portfolio construction. Once you have decided to do Goal Based Investing, set your goals, made your Investment philosophy statement and understood the need for asset allocation, you are ready for […]

Debt instruments will not make you rich…

All of us must have some debt investments. At least that is what ‘asset allocation’ gurus will make you believe, so well, let us believe it. HOWEVER, when somebody comes to me and says “I live frugally and save all the money that I can and keep it in Fixed deposits, Public Provident fund, national […]

What a life Insurance agent says and what he means!

Yesterday I did a small gig on what a Real estate agent says…and how you should interpret it…so today it is the turn of the life insurance agent. 1. Sir since you have an income, you should have a life cover:  Meaning: You have an income, I need to increase my income, so please take […]