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
P/E ratio is one of the most popularly used and talked about valuation ratios. It also comes across as a very simple ratio to calculate. However, one often tends to miss the fact that the P/E ratio incorporates several fundamental factors.
Also, the P/E ratio should never be used in isolation, one should ideally analyze it with respect to comparable companies’ P/E ratios and the markets’ P/E.
So, how does one go about doing the same? And what does this ratio exactly tell us? Let’s find out….Read more
Quite recently, companies like Kingfisher, Suzlon Energy have been in the news for many reasons. The major concerns surrounding these companies businesses were related to their surmounting debt levels. In such a situation companies usually approach lender banks for Corporate Debt Restructuring (CDR), which seems to be the only cure.
So, what causes companies to opt for CDRs? Do they see any hope of revival or rescue by opting for this mechanism? How to identify the ones that stand to benefit from the process? Let’s find out…Read more
Most of us have insurance of some or the other kind. While in some cases, buying insurance may have been necessitated by law, in others we may have bought it on the insistence of a friend/colleague.
However, one thing that is common between Insurance and non-insurance buyers is that most of us are not well-versed with how insurance works exactly. There’s a lot to learn about insurance, even if you may have had it for years!
So, MoneyWorks4me brings to you this article on life insurance basics, to help you make informed decisions.Read more
In October 2012, foreign institutional investors crossed the $150 billion mark of net investments in India. This is despite the challenges the Indian economy is currently facing!
While this may sound surprising, this positive bias comes on the back of the recent reform initiatives taken by the Indian government. These have strengthened chances of better economic growth and thus, improved market sentiment.
But, we retail investors back home continue to stay away from the market! Let’s find out what’s stopping us from earning that extra return…Read more