Know what you need and want in your life and plan for it
Most people dont know what they want in their life, want to own, to achieve, to do, to become before they die, kick the bucket. In short they dont have a Bucket List. I just love the movie with this title and how my two favourite actors Jack Nicholson and Morgan Freeman bring out the insights about what one values in life. But both were old men in the movie and meet in a hospital before they decide to have a Bucket List for the rest of their life. My question is why do we wait for so long and for a harsh reminder to focus on what’s important in our lives.
Get rid of the addiction of ‘listening’ to Experts
Listening to experts is almost like an addiction for most stock investors. While many don’t even realize that they are addicted to this, others who have experienced that experts don’t win for them, are wondering how they can ever get out of it.
How is MoneyWorks4me Portfolio Advisory different than other Players?
A lot of people ask how is MoneyWorks4me Portfolio Advisory different than other players. And the unstated question is how do I know if it is right for me? To be able to appreciate the differences and also know if it is right for you, you need to understand the services/models of the different players in the industry. Read this article to know,What are the different types of ‘Advisory’ services available to Investors?
How to achieve the right diversification in Mutual Funds?
The efficient market hypothesis (EMH) was developed by Eugene Fama who argued that stocks always trade at their fair value, making it impossible for investors to either purchase undervalued stocks or sell stocks for inflated prices. So it is better to buy and hold broad index fund rather than picking individual stocks. Fama believed that returns earned above the index are an outcome of pure luck. However, research indicated that there are sources of Alpha (excess returns over benchmark) in plain sight because of behavioural biases of market participants, or structural/liquidity issues of the market. These factors are acknowledged by Eugene Fama who went on to publish 5 factor model.
Don’t forecast future stock prices, analyze a Company’s ability to earn future profits
Stock investing is all about the future, you invest today with the expectation of a return tomorrow. And when it comes to anything about the future, we are prone to believe in predictions and predictors. Our belief may range from mild interest to staunch conviction; so much so that we may not do anything significant without consulting the stars and the astrologer/forecaster. So, how do we differentiate anything said in stock investing as an act of prediction (a forecaster approach) or sound analysis (an Analyst approach)?