What should be my equity exposure?
“How much should I be investing in equities?” – is a question I get asked very often. “It depends” – is always the right answer. This answer says something but means nothing. Our objective in this article is to be able identify a few typical contexts and present potential choices in those contexts and discuss […]
Signal and Noise
I try and play bridge once a week, last week the tournament start was delayed due to an election rally which caused a traffic jam. I was chatting with one of the senior bridge players, when he found out about my line of work he said “I invested in stocks long time ago, the prices […]
Tinkerbell effect
Tinkerbell effect is an expression describing things that are thought to exist only because people believe in them. The effect is named after Tinker Bell, the fairy in the play Peter Pan, who is revived from near death by the belief of the audience. Beliefs are extremely powerful and their effect is best demonstrated in […]
Teaching kids money management
Parenting and managing money are two things most of us do – but there is very little material/training available about either of them, we are expected to figure this out as we go along. Teaching kids about money management is hardly discussed, though it could be one of the most important lessons that a child […]
Nothing to fear but fear of….
In my meetings with prospective clients, friends etc., topic of investing invariably comes up. I am a big proponent of investing in equities especially for long term goals and some people say that they are afraid of investing in equities as they believe it is too risky. I think it right for people to be […]
SENSEX in 2025….
P/E is about 22, should we be investing? This question was on top of our mind when we were considering investment plans for May-2016. As usual, we thought we should let data answer the question. We looked at all the companies that have current market capitalization of over 100 crores and have been listed since […]
Himalayan expedition, Risk taking, and Value creation
I was reading about the Himalayan expedition by Edmund Hillary and Tenzing Norgay and was surprised to find that there was a support staff of over 400 working with them to a make the expedition a success. Two people got all the glory while there were about 400 support staff who will never see any […]
3 things about compounding that could be better understood
Albert Einstein said “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.” There are 3 aspects of compounding that, I believe, could be better understood. Rate of return matters: Most people believe that saving is enough and compounding will automatically work for […]
Running between the wickets is a great strategy
Virat Kohli & MS Dhoni showed that by good running between the wickets and hitting the odd poor ball to boundary one can safely score about 9 runs an over. This may not seem like a great approach but only 10 of the 46 scores in T20 world cup were 180 or more. Running between […]
IndusWealth FY 2015-16 results
As we end the financial year 2015-16, we are happy to share the results of IndusWealth model portfolio. Investing Rs 1 lakh a month since Jan 2014 in the IndusWealth portfolio would have gain of Rs 7,87,282. The same funds in invested in NIFTY would have a gain of Rs 14,577 or an opportunity loss of […]
It’s time to wake up and smell the coffee
When we move to a new place, we might find the weather or traffic a bit difficult to deal with. Once we stay there for a while this becomes our baseline and we are no more affected by the things that seemed to bother us earlier. There is no pre-set normal for us, we set […]
Making sense of market volatility
For a person standing outside a railway station and trying to understand the patterns of people entering and leaving the railway station – it will seem like people are exhibiting a random behavior. Keen observers will find that there are times when there is a significant traffic and there are periods when there is […]