Lets say I own shares of Colgate from 1977. Suddenly I see that the earnings for this quarter has fallen by Re. 1. What should I do? Sell the share? Should I be worried about the eps going from Rs. 7 to Rs. 6 a quarter? Is it really such a big deal? Should I […]
What drives individual investors – what brings them to investing, what scares them away, what keeps them,…? I really do not know, and even though I have read a lot of theory on this, let me tell you what I have seen among my friends/clients. Some of my friends took to equity very early on […]
Most investors do not succeed in investing because of FEAR. Fear of course is imaginary, but it is REAL for the person experiencing it. So when an investor tells me he/she is scared of investing, I do not laugh at it, I acknowledge that it is plaguing him. If it did not plague him/her would […]
If you are an investor the last 10-12 days would have unnerved you. Should it have unnerved you? Yes. It takes a lot of investing experience to see your portfolio wipe out wealth everyday for 3-4-5 days and still remain unfazed. IT DOES NOT MATTER whether you need the money, you surely get scared. The […]
Can a mutual fund keep a fixed deposit with a bank? No. Can a mutual fund keep a fixed deposit with a big corporate – say Tata Sons? No. Why? Because mutual funds can invest ONLY in marketable securities. If they need liquidity they should go to the market and not the issuer. Great logic. […]
First of all it is difficult to invest for those who have been brought up on television as a source of “market lessons”. So first of all shut if off. The words that I have heard: Panic, crash, capitulation, bottom has been taken out,…… With such words in whatever context, they give you what sounds […]
Now the press is asking “why were the signals in ILFS were not picked up”? Completely wrong question. If the signals were sent what did Sebi do? what did RBI do? what did Jetley do? Did Piyush Goyal not hear the squeal for help? Let us take the IPO (OFS) of Icici Securities. Good issue, […]