Concentrate On the Strongest Candidate

fish in a pond

Concentrate On the Strongest Candidate (This is part 2 of the Stock Investment Research process series.) There was a small lake in a valley between three hills. During summer months, most of the water in that small lake would evaporate away and the lake would reduce to nothing more than a small pond where the lake was the deepest. And … [Click to read the full article…]

Stocks Investment Research Process

circle of competence

Not everything that can be counted counts, and not everything that counts can be counted.  – Albert Einstein Let us begin a multi-part discussion on the Investment Research Process. One of the first lessons we must learn is that the PROCESS is more important than the OUTCOME. Our long term success will rely heavily upon the soundness … [Click to read the full article…]

What is a ‘risky’ asset? Cash or Equity?

Let us first define financial ‘Risk’ as the probability of permanent loss of ‘purchasing power’. After all, the true worth of money is the amount of goods you can purchase with it. Imagine you have some money now and you are given three options to keep/invest it for the next 10 years. Here are the options … [Click to read the full article…]

Most important points about Investing in Stocks

Like the Ten commandments, there are also Ten most important points you need to remember always about Investing in Stocks. You are buying a piece of a Business when you are buying a stock. The reason why you are buying a stock is because the business is making profit and you want to benefit from the on-going … [Click to read the full article…]

Trading vs Investing

The famous Chinese leader Deng Xiaoping once said: It doesn’t matter whether a cat is white or black, as long as it catches mice. Let us compare two main approaches on making money from stock markets: Trading vs Investing. Before we begin, let me confess that I am very biased in favour of Investing. I am trying to explain the reasons … [Click to read the full article…]

Your most important Investment

Munger

What is a good investment? Answer is one which gives you large, growing returns over a long period of time. Nothing fits the bill as perfectly as investing in yourself. This is what Warren Buffett Says: Generally speaking, investing in yourself is the best thing you can do. Anything that improves your own talents; nobody can tax … [Click to read the full article…]