Thursday, October 24, 2013

Graham-Fischer Combination

1. Stay in your circle of competence
2. Avoid companies with bad economics.
3. Estimate intrinsic value.
4. Margin of safety
5. Take advantage of market fluctuations.(Mr Market)
6. Do your own independent analysis and research.

Beat the market

can a retail investor beat the market? should he even try and the decks are stacked against him. can he really out do the professional he have tons and tons of research materials and little bit of inside info. well not really, i don't think he can beat the market. but what hes should try is to focus on beating inflation. the retail investor should actually try and get a absolute return on his investment. Absolute investment is any percentage gains above the current prevailing inflation

Wednesday, October 23, 2013

Stupid Things people do- Emotion Control

what makes people do stupid things? like an employee cheating at work when they will get caught surely. Like people investing when markets are climbing like crazy. Don't they realize there is big downside risk. How sure are we that the downward wave will not drown us. The one main instinct that investor need to develop is SURVIVAL.
You need to survive the constant media blitz, bombardment of analyst advice, temptation to jump in with two feet.
How to develop this instinct? start with your gut feeling. then take a lung full of deep breath and think again about your investment philosophy statement.

http://www.subramoney.com/2008/02/secret-of-successful-investing-philosophy-statement/

Warren Buffet."I don't look to jump over 7-foot bars, i look for 1-foot bar that i can step over"

Tuesday, October 22, 2013

Thought for the day

How many people do you know who have made wealth out of investing in stocks? I am not talking about the jhunjhunwalas, buffets, etc but the ordinary middle class retail investor who saves from his incomes and invests in stocks.
why I am wondering all this is I read is only two things, either how someone speculated and made tons of liquid cash or someone who invested and lost all his life saving in the market scam or crash.

The rest of the world seems to be busy minting money in properties and hoarding it in gold.
ANY ONE? AT LEAST ONE PERSON....out there

Monday, October 21, 2013

Rupee Averaging in Stock Market

i have always read not to average your holding if the prices falls. but have kept on doing it in the hope that when the prices do raise again i will sell off and not make a loss. well till now this has not happened (opto circuit). call it anything you want :throwing good money behind bad is what come to my mind.
what will make my mind relate this is a statement i read in last night surf. it followed corporate scenario of an acquisition. when this acquisition turns out be a dud, the holding company throws more money compounding the problem without releasing that the original investment was flawed. part ego part greed
case example: tata acquisition of coros