If you are in the finance business, today you have to talk about two very important things: Financial Literacy and Financial Inclusion. What you do is not so important! I have heard of an organisation where a person in a grievance cell also has targets! When the customer comes complaining, REPLACE the product, and make […]
A rookie fund analyst called his senior to discuss their portfolio. Of course the CIO does not know about this conversation. Rookie: Sir I think we should sell of our AbC Ltd. shares. Senior: Why? I thought at a lower price earning ratio this share was a good buy, maybe we should try averaging. Rookie: […]
One very important fallacy is called the ‘Sunk cost fallacy’ – which makes us throw more good money after money already gone bad. Typically a lender keeps lending money to one customer hoping that this will enable the borrower to do well and repay ALL the money. Another manifestation of this is called ‘Averaging’ – […]