Investors face all kinds of risks in the financial markets.There is credit risk – the risk that a borrower will default on an obligation. Liquidity risk – the possibility that you will not be able to convert a security into cash when you need the money. Market risk – the likelihood that the share market […]
When markets fall, Price Earning ratios correct. Including the PE ratios of candidates who attend job interviews! Already one is hearing about a big broking firm closing down 100 branches. I have lost track of how many branches they have, so this is an absolute number and not a relative number. What it means is […]
If this sounds like the title of a book, well it is! I have collected a few of my articles – they may well be available on my blog and elsewhere that i have written – which means rediff.com, moneycontrol.com, and myiris.com. This book is a part of M3 – Msigma – as iris calls […]
Yesterday I saw, and I hope you saw that WB is not a fund manager. However almost all his thoughts on investing are worth reading and re-reading. Let us look at something very simple. WB says choose simplicity over complexity. Keep it simple. Do what is easy and simple – leave the complicated things to […]
“Past performance is not an indicator of future performance” — the literature of every mutual fund you own, mentions something to this effect. In fact once, when I was lecturing at a mutual fund house, which was not performing well, one of the managers said, jocularly, “Can we say our past non-performance is not an indicator […]
“Investing should be more like watching paint dry or grass grow. If you want excitement take $ 800 and go to Las Vegas.” This is what Paul Sameulson the Nobel Laurete Economist from US had to say. In the Indian context I tell my students and my clients if you want a “kick” – you have […]
As a financial planner I do spend a lot of time with 16 year olds working in call centers, media companies, banks and so on. When I am with them and discussing their problems, the one question that often comes to my mind is, “If these guys cannot make their monthly salary stretch one month, […]