Myth: Time in the market is more important that timing the market. This says that the longer you stay invested, the more chances of you making money. Again, only partly true. Good investors know that timing is all. While no one can call market peaks or troughs correctly all the time, we all can figure […]
I have always been of the firm opinion that it is easier to understand stats or maths applications than to understand business. Or did I contradict myself? Well, well, if you did not understand cricket BUT understood statistics you will come to 2 WRONG conclusions based on YOUR understanding of maths and stats. 1. Inzamam […]
Yesterday I got 2 mails / comments one said a. your blog is too simple and the second b. your blog is too complicated. I could not agree more. This is like being asked to speak to school – and all the kids from class 1 to class X being the audience. It is really […]
It hardly matters whether it is equities or real estate, the reasons why people lose money is so simple to enumerate: 1. Not knowing the difference between trading and investing: they buy some shares, hope it goes up when it does not they sell off. Since they do not know whether they should be averaging […]
There is not enough literature or education of how to handle your portfolio during your withdrawing phase. This is obvious – there is no money to be made withdrawing from your portfolio. There is a lot of money to be made while you accumulate it, but NIL when you are withdrawing it. Fair enough, right. […]
Thanks to Rich Dad Poor Dad (then bankrupt Dad too!) many people know what are assets and what are liabilities…I am making ONE more distinction…. Assets: are those assets which increase your REAL NETWORTH (NW) Assets: that increase your nominal NETWORTH Assets: that are essential for your living and usage Assets (liabilities!): that are not […]
Let us start at the beginning….what is Libertarian Paternalism? Well it is a subtle way of making people towards rational choices. For example when a person joins for employment the employment form includes an AUTO sign up for an index fund. Say NPS to the extent of 3% of basic salary. The employer also contributes […]