Life stages and asset allocation
I have been catching up with a few friends who have been working for a couple of decades, earning good incomes and are now considering starting their own businesses or becoming consultants in their fields of expertise. One common theme for all of them has been that they have invested a large part of their […]
Fire drill for your portfolio
Fire drills help everyone be aware of steps to be taken in the event of a fire. Preparation for extreme events is best done when one is able to calmly consider various options and figure out the next steps. Unforeseen events happen, but planning for extreme events will help one think through various scenarios and will […]
To drive or not to drive…
I was catching up with a friend who has been using cabs (OLA, Uber etc.) for his commute and was wondering if he should buy a car instead of using cabs. We did some back of the envelope calculations to look at the economics of the decision. Calculations .. One interesting thing that comes out […]
Markets fluctuate but investors shouldn’t
Download Tamil version of this article published in Vikatan Markets fluctuate – that is the nature of the markets. As Warren Buffett says “market in the short run is a voting machine and in the long run is a weighing machine”. Short term fluctuations are to be expected. Now that we are going through […]
Hunting & Agriculture vs. Trading & Investing
Hunting is an adrenaline fuelled and adrenaline fuelling activity. Spotting the prey, the chase, and the kill could be really exciting. One should also note that hunting though exciting does not always result in a kill. In jungles the hunter and the hunted need to run faster every day to survive as it is a […]
Leveraging “HIL” model for investing…
Three friends Hardeep, Inder, and Laxman after graduation decided to start grocery shops in their respective towns. Hardeep was hard working and meticulous and was running a good business. Inder was not only hardworking & meticulous but also had a lot of initiative. He started offering home delivery, collecting mail etc as ancillary services to […]
Investing Rs 1,000 a week for 350 weeks
* This is an English version of the article published by us in Vikatan magazine. (download article) As Vikatan is publishing its 350th edition, “350” was the theme for this article. We wanted to present the outcome of investment Rs 1,000 a week into various investment products – gold, bank paying 9%, and Index (Nifty) over […]
Intrinsic value vs Instrumental value – in a financial context
Intrinsic vs Instrumental value are usually discussed in a philosophical context, let’s discuss them in a financial context. The concept Intrinsic value in a philosophical context is something that is valuable by itself – like health, friendship etc. In a financial context, something has intrinsic value when it is generating profits and is reasonably expected […]
3W’s of Valuation
When a kid is asked to choose between 2 toys, the kid is trying to figure out which gives her greater pleasure (value). As the kid grows up the she has to continue to value various options – which profession to pursue, which career to choose, which city to live it, who and when to […]
IndusWealth Results for FY 2014-15
Financial year 2014-15 has come to an end, and we are happy to share the results of IndusWealth portfolio: FY 2014-15 had stated with a market P/E of 19 and moved up to 23 by end of March (higher than the usual average of 18). In FY 2014-15, if one were investing on a monthly […]
Investment strategy for long term investors in a market where P/E is high
Stock markets are at an all-time high and the P/E ratio is very chose to 24 (much higher than the usual average of 18). The question that is on the minds of many investors is “what should long term investors do in this market?” We thought we should let the data speak for itself. We […]
A review of the 2015 budget and opportunities for investors
* This is an English version of the article published by us in Vikatan magazine. (download article) We believe this is a path setting budget rather than a path breaking budget. Ideally, governments should be in the business of setting policy based on its priorities and providing a stable environment. Private enterprise should be should be […]