Archive for the 'Risk' Category

You have to experience RISK

When Dhoni held the World Cup, it rightfully belonged to the whole of India. To the Indian cricketers who played in the 1930s – and they assumed that we will NEVER be able to beat the better prepared white man. To the Indian cricketers of the 1960s who went through the motions of foreign tours. […]

Where does risk come from?

Risk comes from various places…let us look at some of them… From success: when a person is successful and people around him are not, he/she runs a huge risk. When you sack low end employees / high end employees When you are arrogant about your money. You attract Jealousy. When you get an extremely one […]

My attitude towards risk

My attitude towards risk is simple: A lot of my money is now got into the risk free territory. These are blue chips bought at a very low cost, huge dividend moat, and PPF. So do I take risk now? The answer is yes of course, but in micro bites. I would buy say 200 […]

We see risk differently…blame the media.

Get this straight. The media plays an important role in YOUR life, so learn to use it sensibly. When there is some event which can grab TRP media plays it up. IT IS THEIR JOB. However it is your job to remain calm. Let us say the Coast Guard blows up a small boat. The […]

Risk: Goes on leave once in a while…

In 2003 a young MBA joined a big bank…..and when he joined there was a big cabin which was kept vacant. When he asked he was told ‘Mr. Risk’ sits there, he has gone on leave. The whole of 2003 that cabin remained unoccupied. So our hero did not see Mr. Risk for the whole […]

Risks in retirement…there are many

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 […]

Colour coding in mutual fund investing: Risk colours blue, yellow, brown!

Risk in mutual fund investing comes from: a) not knowing what you are buying b) not understanding standard deviation of the instrument c) not understanding that the past performance is completely useless for knowing what will happen in the future. Let us take just one ‘type’ of fund: The Gilt Fund. All asset management companies […]