Category: Equity

Equity Valuation: Definition, Importance and Process Throughout finance, one rule always holds true. The general belief is that the value of any asset or security is exactly equal to the discounted present value of all the cash flows that can… Read more

‘Past returns are not indicative of future performance’ goes the disclaimer. So, why do we rely on past performance? For most of you, past returns psychologically influence your return expectations for the future. And when that does not happen, there… Read more

The same experts who in 2007 said markets are fairly priced at 21000 are saying it is overpriced at 18400. Are they wrong or is the market wrong? Last week Shankar Sharma said he likes auto stocks. He was particularly… Read more

The people with old portfolios – some of them in their ’80s is coming from a completely unexpected source (that is what risk is supposed to be, is it not?). My parents lost Cadbury, Kodak, Hoganas, ITW Signode, …significant shares… Read more

This is not the first time that I am doing a post saying ‘why people lose money in equities’ – nor will it be the last! Of course there are many reasons, here is an attempt to find some of… Read more

D0 you know what is the Wimbledon effect? Well it is the location – the Wimbledon is in UK, but no Englishman ever wins it !! Similarly when the Indian stock markets go up, the participants are mostly White men… Read more

I am not even sure whether a conversation or strategy which some of us use should be part of this blog. However as an experiment here is a trend in some of our portfolios. I have no clue whether it… Read more

When the index is doing well….we all buy into the optimism. It may actually be a great time to review your portfolio and SELL the duds and perhaps be in an index ETF. This is a tactical strategy of getting… Read more

Of course I do not have an answer. However it is possible that markets are well priced… 1. 2 websites and 3 magazines asked me whether the markets are fully priced: I said I do not know, but then they… Read more

When you do not know something, there is risk. Many people who buy and sell regularly think they are traders. Well most of them are not. For being a trader you need trading skills, tremendous discipline, fantastic connectivity to the… Read more