Archive for the 'Investing' Category

Principles of Investing

It is not as though I have not said such things in the past. It is not that you have not read it – even in our book ‘You Can be Rich too – with Goal based Investing’, just writing once more..Remember Principles are etched in stone. They do not change with date or with […]

Improving as an Investor part 2 of 2

I did a post on improving as an investor..and this is the follow up post. Read this before you go further Improving Investing skills part 1 of 2 As Mr. Buffett says ‘have an internal scorecard’ – be happy internally with what you are doing. Including investing. If your conviction is right, you can be […]

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 […]