Investor Psycology

A ‘Medium’ is something that people get as a reward for doing something. For example, you get reward points for shopping and spending money. But points by themselves do not get you anything. You use the points to buy something which will fulfill your needs [...]

Three magical words ‘I Love You’ & Four most dangerous words This time it’s different – once you are married, you realise even magical words are a trap. :) Sir John Templeton, the investing pioneer had famously said, ‘This time it’s different’ statement is very [...]

Anyone who can make simple thing complex is considered as Investment Guru. The financial media is in the business of broadcasting news, advice, expert opinions etc. It is easy to get swayed by all that advice. But all the advice is not necessarily good for your [...]

An economic crisis makes it difficult for the business environment to thrive. It affects producers, consumers, and investors. It plays a domino effect and affects employment, consumer spending, profits, credit negatively. It leads to the rise of economic bubbles only to bring a crash soon. [...]

Greater Fool Theory & Indian Real Estate

The Greater Fool Theory is an investment belief that says there will be an investor always to buy an asset however overpriced it is. Thus even if the original investor had paid a higher price than was necessary, he would make a profit as “a [...]

The Art of Thinking Clearly in Personal Finance

Warren Buffett says “Until you can manage your emotions, don’t expect to manage your money”. Rolf Dobelli in his book, ‘The Art of Thinking Clearly’ has pointed out 99 cognitive errors (‘systematic’ deviation from logic) and  behavioral traits that we use in our day to day thinking [...]

Movement in the markets depend on 2 factors – One is the actual numbers like growth rate, company performance, prices of commodities and local and global economic conditions. The second is the behaviour of the market participants that is the people and their beliefs, sentiment, [...]

Keep Away from Too Much News

I am sure most of you have made New Year resolutions and are on your way towards achieving them. I would suggest that you add one more resolution – ‘Keep away from too much news’. Read on to find out why I want you to [...]