In the fifth article of our Series on ‘The Most Important Thing’, we show you why if a certain investment is too good to be true, it probably is… Time and time again, the post-mortems of financial debacles include two classic phrases: “It was too good to be true” and “What were they thinking?” Why do we investors keep making such mistakes repeatedly? Because investing is an action undertaken by human beings, most of who are at the mercy of their psyches and emotions. According to Marks, there are four important emotions that govern our behaviour: Greed: The first emotion that serves to undermine investors’ efforts is the desire for money, especially as it transforms into greed. Most people invest to make money. There’s nothing wrong with trying to make money. Indeed, the desire for gain is one of the most important elements in the workings of the market and […]Read more
Sir John Marks Templeton, the billionaire value-contrarian investor & mutual fund pioneer, is best known for his flagship Templeton Growth Fund which posted a return of 13.8%, compounded annually from 1954 to 2004, outperforming the Standard & Poor’s 11.1% return during the same period. There have been marked examples of his exceptional style of investing: During the Depression of 1930s, John Templeton bought $100 worth of every stock on the New York and American stock exchange that was, then, trading below $1 for a total investment of $10,400. Apparently, he had a pile of junk back then, consisting of stocks of some 104 companies, 34 of which were bankrupt! Just four years later, he sold these holdings for more than $40,000. A whopping CAGR return of ~40%!! Sir John Marks Templeton… (1912-2008) An American-born British stock investor, a CFA charter holder and a renowned philanthropist- very little of what describes […]Read more
If you take a look at the Warren Buffett menu of investments, you’re sure to find the likes of Yum Foods (KFC & Pizza Hut), Coca-Cola, PepsiCo, Hershey’s in the specials. Is it time to add some sauces?
Yes! Warren Buffet’s Berkshire Hathaway has inked a deal to buy-out H. J. Heinz, along with 3G Capital. Is it just his love for the ketchup, or does it make absolute business sense too? Does it fit into his typical style of investing? What is his investing style, by the way?
I spent a Sunday morning talking over the same with my Dad. Here it goes…Read more
The quarter ending December 2012 looked up to the Government for some major reforms through its Union Budget for FY13-14, to address the macro problems affecting the economic growth of the country, such as slow investment growth, high inflation and rising current account deficit.
Capital intensive sectors took a hit on the back of sluggish construction activity and slowdown in order inflow, while companies in the defensive sectors outperformed.
In this backdrop, let’s look at how the Nifty 50 companies performed in Q3 of FY12-13? Has the market overvalued or undervalued Nifty vis-à-vis its MRP, and, what should investors do?
Let’s find out…Read more
Over the last 2-3 years, we have seen the economy riding a roller coaster, offering less foresight, and more structural distortions. In such a scenario, are factors like rising inflation & mis-selling by financial institutions shaking the retail investors’ confidence? Are they being driven to gold and real estate as preferred investment avenues rather than to sensible equity investing which could manifold their existing returns?
The budget provides the government with an important platform to introduce constructive reforms. So, could the FM, through the forthcoming Union Budget 2013, have anything in store to bring investor confidence back to the Indian Stock Market? Let’s find out…Read more