Earning Fixed Rate of Interest in Stock Markets
The fact that money lying in trading accounts does not earn any interest income is often a big problem for those who trade in multiple trading accounts, particularly asset managers, stock-brokers and their authorized persons who may not be able to transfer funds between client accounts and their trading account on a short notice. This […]
Stock Market Predictions for the Long Term
I have lost count of the number of times I have been asked about the ‘target price’ and ‘nifty levels’. Some of you have written to me about adding a target price column in the subscription section of the site. The omission to add such a column is deliberate. While I love writing my long […]
How To Prepare For The Next Stock Market Crash?
One year ago I did a detailed research on Sensex target for the year 2020 (full article here). In that research, I studied the growth of the Sensex over the last 24 years and analyzed where we could end up in the year 2020. At that time, the Price Earnings multiple for the Sensex as a whole […]
10 Bad Financial Decisions to Avoid
[1] Selling an asset ‘only’ because it is doing badly – Mutual fund holders and share holders are different when it comes to the time it takes for each category to give up on investments. Typically a fund holder will compare his returns with overall stock market returns every 2-3 years. A retail investor in the […]
High vs. Low Priced Stocks – What Delivers Better Returns?
A few days back I received this Question – “Is it better to choose low priced stocks over high priced ones?” To elaborate on the question – do low priced stocks have a better chance of multiplying faster than shares that are already priced very high? Think of a share trading at Rs. 10 vs. […]
Best Fixed Income Investment Options in India
I have lost count of the number of queries I have received about the best fixed income investment options. I have refrained from writing about this mostly because I firmly believe that “nobody ever became a millionaire by investing in fixed deposits”. Yet, people get fascinated by 8% over 7.75%. If you are used to investing […]
How Many Stocks Should an Ideal Stock Portfolio Have?
This is possibly the most open ended question about stock investing and has no correct answer. Honestly, there is no rule here. I had written a post on this sometime back where I said, personally, I never try to own more than 5 stocks. That works for me. In fact, if you calculate the return of […]
Buying Delisted Shares – Emerging Investment Opportunity
A quick word on Unlisted vs Delisted Shares: Unlisted shares – shares which never got listed on an exchange in the first place. Still it is possible that an active secondary market exists in these shares. Example – Ratnakar Bank and Bombay Stock Exchange both of which are likely to get listed on a stock exchange […]
Why Value Investing Does Not Work Anymore
Over the last few months, I have received far too many mails expressing views on value investing and stocks that are undervalued, often deeply undervalued in the opinion of the writers. One of the best comments I received came from a 65 year old lady, who wrote this: I have done a little research of […]
How to Judge Investor Sentiment in Stock Market
What markets do day to day is overwhelmingly driven by random chance. Ascribing explanations to short term moves is like trying to explain lottery numbers. It’s no secret that in the short term – investor sentiment is arguably the only driver of stock prices. Their sentiment may turn positive or negative based on news flow, majority analyst […]