SIP creates wealth in the long run, however it gives no immediate gratification. Equity trading (what the common man thinks is investing) gives immediate gratification and does not create wealth for the client. The broker wants him to trade so that broker’s wealth goes up. So what is the solution? Sell SIP in equities as […]
I have written a lot of obituaries for the Indian mutual fund industry….let us see what an American Investor pays for investing in a mutual fund. Most American investors go through a Broker-Dealer or a financial planner who acts as a B-D. Forget the myth of a fee-based financial planner – he is as difficult […]
Have you wondered why compounding works? Because most people who have passed 7th standard ‘think’ they understand compounding, but many do not. In July, 2006 I had done an article for rediff.com ‘How to become Rich with just Rs. 100″. I have no clue as to how many people read this article – it is […]
This is an old idea – many people have said it. Particularly Peter Lynch has said this many times – buy things you are familiar with, what you cannot describe in a picture is not worth buying, etc. There is of course a lot of justification to own shares like Gillette, Colgate, Hindustan Unilever, ITC, […]
Continuing my dialogue series… Journo: Subra do you not think the life insurance guys get pampered? Subra: Why do you say so? Journo: 40% of the contribution as a commission is too much, do you not think so? Subra: What about products with 122% commission? http://www.subramoney.com/book-written-by-me/ J: Not possible in the financial service industry…..at least […]
Whenever the receptionist in our office wears a pink dupatta, equity markets go up by at least 50 points. I have no clue whether you would buy shares based on something like this. However, now I am being offered shares of Talwalkar (the fitness people) priced at a price-earning ratio of 44. The logic? Subra, […]
There are a few people I know who keep chasing investment opportunities. There are some people who are good in one field – say sales, marketing, operations, dentistry, physiotherapy,….could be anything, so they think they are good in finance. Of course some of them visit websites, talk to people, read books and suddenly believe that […]