Wit. Wisdom. Value Investing.
“If you can keep your head when all about you are losing theirs, then you probably haven’t been following global financial markets over the past few weeks.” Thus went the first paragraph of a report I recently read on Bloomberg.
The dizzying price volatility – across asset classes and indifferent to national borders – might be taken as evidence that the market has lost its anchor to fundamentals.
One of the three resources – apart from your brain and willingness – you need to become a successful investor yourself is – Time.
Time is precious…even more precious than money, simply because you cannot save it.
You cannot set aside time for future use as you can money, food, fuel, or a number of other things.
Any attempt to save time by not using it is futile. What happens if you sleep eight hours and try to save the rest of the day by doing nothing? At the end of the day, the unused hours are gone forever.
[Read more…] about Investing in Stock Markets? Take Care of Your Most Precious Resource
Single Education (MBA/Engineering) = Ego (I can do nothing wrong).
Double education (MBA + Engineering) = Super Ego (I’m doing everything right).
Greed = I, me, myself!
Double education + Greed = I’m doing everything right…for myself!
If you haven’t already, sign up for our daily e-letter, The Safal Niveshak Post, and claim a Free copy of our Special Report – “10 Big Lies You’ve Been Told About Investing” – to be released on 20th August 2011. The Safal Niveshak Post covers deep insights on investing to help you navigate the stock markets with confidence. It’s free, and I’m sure you’ll get a lot out of it. Click here to sign up.
What separates an investor from a speculator?
Of course they look different. While an investor is generally calm and composed, a speculator is mostly agitated!
Anyways, the serious answer is – It’s not what they choose to buy but how they choose it.
At one price, any stock could be a speculation; at another (lower) price, it can become an investment.
And in the hands of different people, the same stock – even at the same price – could be either a speculation or an investment. It all depends on how they understood it and how honestly they assessed their own limitations.
[Read more…] about Are You an Investor or a Speculator?
A few interesting items for your reading pleasure:
- Oh-ho! ‘India least favoured equity market in emerging economies’ (The Economic Times)
- Just do it! Cohan Says Close Wall Street Casino Cut Pay In Half (The Big Picture)
- Nice read. Authenticity (The Big Picture )
- Wow! Gold’s climb is perfectly rational (CNN Money)
- Hmm. The moral decay of our society is as bad at the top as the Bottom (The Telegraph)
- ’Fine’ art of corruption. DLF fined Rs 630 cr for unfair practices, realty reels under shocks (The Economic Times)
- Nice read. Breaking and entering (Mint)
- Ouch! Jim Rogers: Higher food prices will spark riots soon (Moneynews)
What are you reading?
Stock markets have received heavy pounding over the past few weeks as escalating fears over the global economic outlook is pushing investors into safer assets like gold.
The stampede out of equities has spared few sectors or individual stocks and has wiped out hundreds of billions of dollars of market value across the world, including India.
This isn’t any banking or stock market crisis that we are facing. Neither it is anymore a government crisis.
Instead, what we are facing now is a ‘crisis of confidence’.
[Read more…] about How to Invest In Stocks When Fear Runs High
Here’s what I’m reading this Tuesday morning that might interest you:
- Is this ‘news’? Sebi probe shows rise in dirty money in stock market (The Economic Times)
- Old tricks! The Mutual Fund Industry Is A Huge Scam That Costs Investors Billions Of Dollars A Year (Business Insider)
- Contrarian call. The case against gold (Moneynews)
- Stocks on sale? Buffett Made Biggest Bets on Stocks This Year (Bloomberg)
- Hmm. Wall Street’s new lie to Main Street – Asset Allocation (Blog Maverick)
- Nice read. Ending the Moral Rot on Wall Street, Part 2 (Bloomberg)
- Wise man speaks. Stop Coddling the Super-Rich: Warren Buffett (The New York Times)
- Hmm. The cost of West’s mistakes (Mint)
What are you reading?
A very Happy Independence Day to the Indian readers of Safal Niveshak!
Here are a few interesting items for your reading pleasure:
- Right! India needs independence of thought (DNA)
- But then… This is not the India we fought for, say freedom fighters (The Economic Times)
- Nice read. How to Manage Financial Stress (Frugal Dad)
- Wise man speaks. Mr. Market’s Next Attack (The Daily Reckoning)
- It’s all in the mind. What Neuroscience Can Teach Leaders (Bloomberg)
- Good read. What Can Replace the Dollar? (Project Syndicate)
- Hmm. Microsoft Faces the Post-PC World (The Wall Street Journal)
- Hmm. The world runs out of options (The Telegraph)
What are you reading?
Sign up for our daily e-letter, The Safal Niveshak Post, and claim a Free copy of our Special Report – “10 Big Lies You’ve Been Told About Investing” – to be released on 20th August 2011. The Safal Niveshak Post covers deep insights on investing to help you navigate the stock markets with confidence. It’s free, and I’m sure you’ll get a lot out of it. Click here to sign up.
After last week’s crash landing, this week wasn’t any better for stock markets around the world.
The Indian markets, represented by the BSE-Sensex, closed the week down by 466 points, or 2.7%. This took the Sensex to sub-17,000 levels for the first time since June 2010.
Is this market going up or down? [Read more…] about Is This Market Going Up or Down?
When in doubt, follow. This is an apt quote on the behaviour of us humans.
We generally draw comfort in going with the majority, or the consensus.
The problem is that we have very less control on such behaviour, as evolution has equipped us with this tendency of running a rat race.
Yes, you read that right. We are all running several rat races, whether in our work lives or when it comes to investing our money.
[Read more…] about The Problem With a Rat Race is That Even If You Win…