Archive for the 'Investing' Category

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 […]

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 […]

Real Estate a Fantastic Investment?

Is real estate a fantastic Investment? If yes, are the math tools available to prove that? If no, are the math tools available to prove that point of view? The jury is still out there to judge these questions and there are no clear answers. However I found an article in the Times of India […]

Asset Allocation is a full package…!

Many people do not know the word asset allocation. Recently I have been talking to reasonably successful people who have achieved fantastic financial success but with a breathtakingly risky portfolios. This is like saying ‘I drove from Mumbai to Pune in 2 hours flat – I drove at a speed of 120 km per hr.’ […]

The actual returns on an asset….

The assets that are easy to understand are those in which you know how much returns you are getting. So you keep a fixed deposit in a bank, the bank tells you that the FD is for 5 years and you will get 9.25% as return. Ditto for PPF, Kvp, nsc… However when it comes […]

Creating a fortune!

It must have been in 2006 when a senior banker asked me to meet his neighbor’s cousin. She had lost her father (her mother had died long ago) and was having some problems understanding her late father’s portfolio. She had no clue of her father’s portfolio, but she kept saying that he would regularly buy […]

Are you true to yourself? Ask excel not your brain

Most of us suffer from a big bias called Mental Accounting. We think we can do complex calculations in our head, keep track of expenses, compare it with the past happenings – but hey this is not true. So break up your expenses into the following BOXES. A. Absolute essentials: Food, basic clothing, shelter, electricity, […]