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{ Category Archives } Investments

Ikea and herding

“We find that whole communities suddenly fix their minds upon one object, and go mad in its pursuit; that millions of people become simultaneously impressed with one delusion, and run after it, till their attention is caught by some new folly more captivating than the first.” Men, it has been well said, think in herds; […]

What Forrest Gump can teach you about investing ?

Sounds ridiculous? After all, Forrest Gump was an immensely successful movie and rightly so.  But what has it got to do with investing? In the movie there is a scene where Gump says that his partner Lt. Dan has invested the money they got by selling their business in to “a fruit company” and that […]

When a science teacher teaches finance !

Life changing thoughts from ‘Guru’s around the world, those whom i met and those whom i have only read about. This Guru Purnima thought i would list some of them. My school science teacher once told me the equation of happiness as  “Annual income twenty pounds, annual expenditure nineteen [pounds] nineteen [shillings] and six [pence], result […]

Churning investments vs planting a tree

  In most aspects of our life, Be it buying a house to selecting a school, to hiring for a job we look at the track record of the person or the place, in other how good they have been in the past. For example we look at buying a house based on how ‘good’ […]

Rahul Dravid – Return of capital vs return on capital part 2

Last week i had written about some fraud investment scheme had promised sky high returns and conned many in Bengaluru, (http://blog.credocap.com/?p=467) turns out that the celebrities who lost money included the likes of Rahul Dravid, Saina Nehwal Prakash Padukone  etc.  As per reports they were promised upto 40% returns but did not get even their […]

Return of capital vs Return on capital

As investors our focus should primarily be on return of capital ( can we get our money back)  but we tend to focus more in return on capital (what is the % we will get !) Tell someone to put his entire wealth in equities and they would shudder in horror, what happens if the […]

How will the markets move?

The inspiration for this note from Swanand Kelkars article in Mint :How will the markets fare? This is the most asked question by investors to advisors, truth be told, this is also the most hated question as  the correct answer is ‘ we don’t know’,  but this is seldom the answer. The market expert will […]

Advisors real job

Being a financial advisor is a fascinating profession, many new investors think that our job is to find the best investments and we think that our job is to get the asset allocation ( between various assets such as equity, debt, real estate etc) right. For investors who have been our clients for long the […]

What about the new XYZ fund & other questions.

The wisdom of life consists in the elimination of non-essentials. – Lin Yutang. Often, Im asked  what about this new equity fund which has come up. should i buy it? Somehow the idea seems to be that the new funds like new cars are better or are cheaper. While it may be true that the […]

“festival” sale

The festival season is upon us, online or offline where ever we go, we will be bombarded with ads that goes something like ” This Diwali light your home with 40 door fridge”.God knows how we can light up our house with a fridge or tv except when one is opened and other is on […]