Most of the ‘average’ students today do an MBA and get a degree. Now this could be from a great college, a good college, a bad college or a downright stupid college. Let me tell you the salaries that were being offered for these graduates. It is really appalling. For example I remember that there […]
Either I am being very touchy about ULIPs or Endowment plans in general or too many pro-ulip articles are appearing in the print media also. The big worry about using numbers in an example is to know enough about statistics – mean, median, mode, standard deviation and NOISE. Noise is the distortion that is caused […]
This is not the first time that I am doing a post saying ‘why people lose money in equities’ – nor will it be the last! Of course there are many reasons, here is an attempt to find some of them: 1. Over-Confidence: It is quite shocking to see how people over estimate their ability […]
This is a very, very old story and posted earlier, Now reposted, sorry! Kachua is an old client of mine – filled up SIP forms and keeps doing the SIP – now for almost 10 years. Kharghoshs were referred to me post 2008, in tears and in Red. Not sure how long they will last […]
The Kharghoshs were leading a comfortable, lifestyle. Typical Alpha male knew everything about investing by reading brokerage websites! He knew that equity gives best returns, so he had a leveraged life style! His house, car, vacations, were all from borrowings. He had ALWAYS earned far greater than the interest rates that he was paying. He […]
PMS accounts have drawbacks too. For starters, there are all kinds of money managers: good, bad, mediocre, and cheats. Clearly, it’s not worth paying for anything less than the best manager you can find. You cannot also find out who is good and who is not on any unbiased platform. There is no way how […]
Understanding mean, median, mode, standard deviation, regression, reversion to the mean – is a pre-requisite to understand financial markets. Let us see some simple examples: It rained 90mm in Mumbai on 22nd July. If it rains like this for 6 months continuously, Mumbai will be drowned. It was 43* C in Lucknow on 23rd May. […]