“We can pick multibaggers. Subscribe to our services and get MULTIBAGGERS” – Tom, Dick & Harry Looking at the current scenario, there seems to be a slot machine game being played on the bourses. Any Tom, Dick or Harry in some corner of the country thinks he is skilled enough to spot multibaggers! Since all the stocks are moving up, there are high chances that all the recommendations will work. This means that ‘Luck’ is predominant in stock picking. Ones who are getting thrilled are forgetting what if the tide goes out? What if they held on to their investment and market went belly up? Do they have strong conviction to hold on to those stocks for long term or may be till next bull market? Seems unlikely! “Only when the tide goes out do you discover who’s been swimming naked.” –Warren Buffett People usually overestimate their stock picking ability […]Read more
Do you stay glued to the daily ups and downs of stock prices? Do you wonder what to conclude from the prices, fluctuating every now and then? Do you hope to make a windfall on the hot new stock you bought? And yet, things don’t go as you want. Trust me; this can be simply termed as human misjudgement of the underlying value. What is a stock? It’s a small piece of business. What does that mean? Simply, that you own the earnings and the cash flows that the business generates from time to time. To give you an evident analogy, the dividend on the stock is similar to rent you receive on your property and capital gain from the stock is similar to gains you earn after selling the property. Does the rent or property price change every day? It changes only over a period of time, may be […]Read more
Think of your deepest, most improbable desire. In your heart of hearts, what is it that you want to have in life? Is it a beautiful bungalow in a posh locality? Is it that flashy car you saw in the latest movie? Or is it to retire at 40 and follow your passion? In fancy lingo, these are called BHAGs – Big Hairy Audacious Goals. These goals are often your heart’s wishes, but get consigned by your brain to the ‘improbable’ bucket, forever to be ignored. And without one eye on these BHAGs, you end up with a mid-sized flat in a somewhat good locality, a half-decent car, your kids in an average school and perennially compromising your dreams in favour of a running cash flow. But what, if I tell you that you don’t need to live like this? That the key to unlock your goals is sheer common-sense? […]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
To earn high returns you need to take high risk! – at least that’s what everyone in the investment world thinks. But what we forget is that, higher the risk, higher is the chance of incurring losses!
So why do we want to increase the chances of making losses when actually you can earn high returns even from safe, blue-chip stocks. Do not believe us?
Read the MoneyWorks4me proof on how this is possible!Read more