Archive by Author Sourav Ganguly - Blogger, MoneyWorks4me
Peter Lynch Style: How to get rich playing with assets!

Peter Lynch Style: How to get rich playing with assets!

Imagine yourself looking frantically for something that’s important to you. Let’s assume,you are searching for keys and time is running fast. As the sands of time start running out, you get nervous & tense as you imagine the angry face of your boss. Then out of the blue; to your relief, you discover, the thing you were looking for was tucked right under your nose! It’s a human tendency to lose sight of things, which lurk right in front of us. When it comes to this flaw, we are in the elite company of giants like Peter Lynch. In this 2nd blog of the series, we explain how! So, what exactly is an asset play? An ‘asset play’ is a company, sitting on a huge pile of valuable assets like cash, lands or patents. It is all the more valuable as long as it is little known & the institutions/analysts […]

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Peter Lynch Style: Making Money in the land of ‘Fast Growers’!

Peter Lynch Style: Making Money in the land of ‘Fast Growers’!

“The investor of today does not profit from yesterday’s growth.”         Warren Buffett Most of us have relatives who like to fashion themselves as ‘stock-gurus’, with their stories revolving around how they ‘could have been’ millionaires now, if only they had held their nerves. The stock that comes up frequently in these conversations is Infosys. If you had invested Rs. 9,500 to buy 100 shares of Infosys in the IPO (that went undersubscribed in 1993), 12,800 shares (adjusted for bonus issues) worth princely sum of Rs. 3,15,26,400 would be in your kitty. But, is Infosys still the key to riches? As often repeated, past performance is no guarantee of future results. So, how does one find out the next ‘Infy’? Who are the fast growers? A Fast Grower is a small yet aggressive & nimble firm, which grows roughly at 20-25% a year. This is an investment category […]

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How to find financial wisdom in unconventional places?

How to find financial wisdom in unconventional places?

“The more that you read, the more things you will know. The more that you learn the more places you’ll go.” Dr. Seuss We have often come across a number of ‘Must Read’ books about investing. But, at the end of the day (& month), how many of us really manage to read through these gigantic reams of paper? A common complaint, we all have, is that they are too theoretical & indecipherable unless one has profound knowledge of economics, statistics, psychology & similar esoteric subjects. This book, “More Than You Know” by Michael J Mauboussin, decodes the indecipherable by tapping into a wide variety of knowledge from unconventional sources. Ever thought, what ants could teach us about the importance of diversity in efficient markets? What bees could reveal about the behaviour of crowds? This book will surprise you with such bizarre, yet immensely profitable insights that will change the […]

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How to make Decisions under Risk?

How to make Decisions under Risk?

Have you ever come across a book which fundamentally altered your idea about yourself? Renowned Psychologist & Nobel Laureate in Economics, Daniel Kahneman, by writing “Thinking Fast & Slow”, has achieved just that. In the process, he has uncovered many secrets behind the various quirks of our mind which influence the way we make decisions under risk. As an investor, aren’t we faced with the possibility of risk every time? Aren’t we always keen to know more about the deep, murky secrets of human mind that can affect our wealth and happiness? The answer is ‘YES’. To unlock the answers to these questions, please read on! Why are we always in two minds? The answer lies in the 1st Part of the book, wherein we are introduced to what the author has called as ‘Two Systems’. These are the two characters of our story: System 1 – The intuitive, impatient, […]

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