Dear Smart People, I know you read my tag saying ‘We make Smart People Richer’. Sure I do. A person who has read all my 5983 posts, understood them, and implemented them surely has saved/ earned more to justify all the effort. So here is the disclaimer. Every finance professional (oops, ok, any professional) whom […]
When people learn about diversification, mostly they do not understand that there is a difference between asset diversification, and fund diversification. Frankly in my head even asset allocation is not necessary for a young investor in the accumulation phase. If you believe that Equity will give the best returns over say a 50 year period, […]
You keep hearing that the SIP investments have gone nowhere in the last 5 years. Our lovely press also scares you into saying “the sip of the last 5 years has yielded less than PPF”. True. This, however, is the best news for people who are accumulating investments on a SIP basis. For longer periods […]
I have not written much about the Financial Technologies problem, and about its founder Jignesh Shah. I always felt that the investors who invested in such schemes should have understood that they were taking risk. When SBI was giving 8% p.a. interest, nobody, repeat nobody can give 12% assured, RISK FREE returns. However, most of […]
Sir we are offering you an exclusive all expenses paid trip for 2 to Goa. We will pick you up from your house, and drop you back. You fly in a small private aircraft, landing at Goa on a Saturday evening, 4pm. Yes, you can get your kids along. Of Course, Sir, you can get […]
When we were in college mostly valuation of a company meant calculating the surplus over and above the ‘normal’ return on assets. Of course, I am simplifying a lot, but we could NEVER, ever assume that interest costs would be zero. Never, repeat. So when interest rates are high companies with a lot of assets […]
At various points in time from 1979 till today I could have said this and sounded smart. It is always easy to sound smart being NEGATIVE than being POSITIVE. However, to make money you need to be in equities, not in cash. Simple law of life, is it not? So let me tell you – […]