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 […]
All you need to retire is a LEnS
A question many ponder is “what is the amount I need to retire?” Retirement may not mean one is not working at all, it could be that the work may not generate income for the individual. Couple of prerequisites for “retirement” are To have come to an equilibrium with one life style and not having […]
3 “S”ins to avoid while saving for your kids college
Parents and prospective parents intuitively understand the importance of college education and are keen to ensure that they have enough funds to support their kids through college. Common challenges in planning for college are Starting too late Saving too little Selecting inappropriate products Starting too late: Saving for college becomes a must once the child is born. […]
Don’t put all your eggs in at the same time….
Most of us intuitively understand the concept and benefits of having a diversified portfolio – as we have heard “don’t put all the eggs in the same basket” umpteen times, if not more. Temporal diversification is less well understood. Temporal diversification is building up assets in a particular asset category over a period of time. […]
Instincts, Intellect, and Investing …….
Behavioural economics gives us excellent insights to leverage our instincts and intellect for investing. Let’s consider three emotional situations of Stress, Panic, and Greed. Stress: Lets say Sachin Tendulkar is coming to bat when he has failed to get runs in the last few games. It is only natural that he is thinking about his […]