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{ Category Archives } Financial Planning

From 5 crores to 4 cows !

It was somewhere in 2011 that i got a call from Economic Times journalist Prashanth asking for my views about how people should deal with sudden fortune coming their way. The context was that a Kaun Banega Crorepati participant Sushil Kumar had won for the first time 5 Crs in the contest. Prashanth wanted me […]

Mozart & Money.

http://en.wikipedia.org/wiki/Wolfgang_Amadeus_Mozart#mediaviewer/File:Croce-Mozart-Detail.jpg There once was a man who became the most famous composer in the world but was utterly miserable most of the time, and one of the reasons was because he always overspent his income. That was Mozart. If Mozart can’t get by with this kind of asinine conduct, I don’t think you should try.” […]

The forgetful investor

Wish you a happy and forgetful new year 2015 !! Let me explain 🙂 Fidelity Investments did a study of their investors to find out who made the best returns, one would like to think that those who made the best returns were either most educated, or people who carefully analysed their investments and went […]

Final Round : Mike Tyson vs Theodore Johnson who is the champion?

We all know Mike Tyson, but who is Theodore Johnson? Here is a David vs Goliath story. Mike Tyson, former heavy weight champ and the man who made more money than any other boxer, was at one point in time worth half a billion dollars, that would be around 3000 Crores today, making him both […]

Wealth destruction effect of frequent activity.

The attached pic via @awealthofcs while meant to show power of compounding also shows that frequent churning of investments leads to wealth destruction and not creation. Keep in mind that returns are same for both options and the only difference is the taxes paid once every year vs once after 20 years. If we assume […]

Wealth through glorious inaction

  Managing your career, or home requires action. The same can not be said of investing, there the action required is only in evaluating a investment and then deciding to invest on it. Checking out after that say once a year to see if any course correction is required. Like the Zen concept of glorious […]

Snowball Effect

“The important thing is to find wet snow and a really long hill. –  Warren Buffett explaining compounded returns via snowball effect. Snowball effect describes something that starts out in  a small way, gathers momentum with time and has the highest effect in the end. Investing is no different, no investor ever started out in […]

Saving Investors from themselves.

Saving investors from themselves “Dear investor, the fault, is not in our stars – and not in our stocks – but in ourselves,” said Benjamin Graham, the father of value investing, and better known as Warren Buffett’s Guru. In early 2000, a business newspaper carried a front-page picture of a big crowd in front of a […]

Of Uncle’s and Aunt’s.

  What uncles and aunts can teach you that the business newspapers will not. If you are going to invest in stocks over the next five years, would you hope for a higher or lower stock prices during that period? Many investors get this one wrong, they are elated by higher prices and depressed when […]

Circle of Competence in Investing

In the world of investments, one is constantly barraged by data, analyses, news, etc., As we saw some issues back most of it is noise, and only few signal. Indeed, the investment world is the most famous one after entertainment with dedicated news channels, newspapers etc. The management thinker Stephen Covey said that the only […]