How to Earn Fixed Interest Income in Trading Accounts?
I wasn’t really sure of the title to this post but the idea stemmed out of a question that I received from a subscriber. Instead of repeating the exact question, I will break it up into 2: Can you earn fixed interest income on the spare cash lying in your trading account? Should you transfer […]
Top 6 Investing Mistakes of All Times
Meeting with individual investors over the years has taught me much about investing mistakes. No matter how you classify investors (i.e. fundamental, technical or confused), the mistakes they make are almost invariably identical. While some mistakes are the result of simply not knowing what to do, many are the results of either (i) losing interest; […]
3 Reasons for the Recent Stock Market Correction
Since the beginning of 2016, Indian stock markets have fallen close to 7%. Overall they have fallen ~ 20% from their highs of 2015. What’s intriguing about this stock market correction is not the pace at which it has happened but the fact that no other asset class has done well during this period. What’s […]
Where Does the Money Go When Stock Markets Crash?
Indian stock markets have corrected close to 20% from their peak of 2015. Chinese markets have performed even more poorly, down nearly 50% from last year. I got asked this really interesting question: Where does the money go when stock markets crash? After all, those who sell stocks, (because of which the price corrects) must […]
Pay Attention to Stock Market Experts on Television?
POST UPDATED – WATCH END OF POST A few days back someone on twitter wrote in to me: In my view, if television experts were correct with their recommendations, they would be the richest people on earth; the fact is that they are just as right or wrong as any of us. Like many online […]
Don’t Be a Compulsive Investor
My friend Anishka is by far the smartest sales person I know. She manages clothing boutique for a big designer label here in New Delhi. Last week she told me a thing or two about how to sell. Here is an interesting way of doing it: Assessing the psyche of a customer is most important. […]
Does Luck Play A Role In Stock Investing?
Courtesy of one of my well connected friends from Delhi, yesterday I got an opportunity to meet one of the most renowned astrologers in India. Legend has it that a former prime minister was a regular at his office. Before I write about my meeting, let me admit that I am somewhat of a reluctant […]
Draft Red Herring Prospectus (DRHP) and the IPO Procedure in India
I have long been convinced that not more than 0.1% of retail investors look at the (Draft Red Herring) Prospectus (the DRHP) before applying for shares in an IPO. As a lawyer (and an Attorney) who spent 6 years drafting these documents, this has never been a happy realisation. I wrote things which nobody liked to read. This […]
Stock talk with Albert Podell
Al started investing in stocks in 1963 with an initial investment of US$ 4,000. By the year 1999, his portfolio value had reached US $14 Million. He has given close to US $8 Million of his wealth to charity. I got to know Al in 2006 when he delivered a lecture at NYU about stock investing. In […]
Spiritual Growth and Achieving Material Wealth
A few days back one subscriber asked – “If you say nobody can predict what the stock markets will do in the short term, then how you are so sure about the future of stock “__X__X_”. It’s a valid question, why should anyone recommend a stock? In fact, if the markets work on equilibrium and for every buyer there exists […]