Today investing in equities is great fun, and interesting. So people go and read a lot of websites, books, magazines, articles – and find themselves nicely entangled in a web. Great. Then they read about the greats. So Warren Buffett tells them ‘Only those who do not understand what they are doing diversify’. Fantastic. Till […]
There is nothing called a ‘Buy and Hold’. Repeat. There is nothing called a Buy and Hold in portfolio management. Whether it is a Warren Buffet, Peter Lynch, Vallabh Bhansali, Chetan Parikh, …..what sounds like B and H is actually active management. They buy shares and then follow the company through out its journey. In […]
It is not that the retail investor cannot invest on his own, it is just I think the odds are terribly against them. Let us look at some of the foolish statements that I hear from time to time: 1. I do not make losses in the market: A wife told me that this […]
There are some stories that I really liked as a kid. One of them is the hen that laid golden eggs. Since the average IQ of the readers of this blog is high, and for brevity do not think there is any need to repeat the story. Let us see what the government does when […]
Diversification Financial Planner: A diversified portfolio lowers your risk. Reaction should be: Diversification won’t always save you – and you need more of it than you think. Your financial planner has to understand diversification across asset classes, geographies, business houses, industries, time horizons, etc. Not all financial planners are equipped to evaluate and advice on […]
If you read what John Templeton says, you will believe that you need to create a diversified portfolio – a little of Japanese stocks, lots of American, some emerging markets, etc. in equity alone. Apart from this some debt – short term, long term, etc. Warren Buffet on the other hand says you should concentrate […]