Time seems to fly by when we talk to people we are attracted to, or when we like doing something. And it also seems to slow down when we do something we find boring. In investing as well, something similar holds true...
Category - Behavioural Traps
Ketan GujarathiHow to Emotionally Prepare for Stock Market Correction?
Most successful strategy in equity investing is buying good companies at cheap prices. This philosophy is called as Value Investing. However, cheap prices do not come without temporary negative news. One has to buy when...
Be prepared to change your views, if the facts demand…In the Stock Markets too!
‘When the facts change, I change my mind, what do you do sir?’ – following this Keynesian quote in the stock markets may put you on the road to successful investing. But we humans are very reluctant when it comes to...
Team-MoneyWorks4meDon’t forecast future stock prices, analyze a Company’s ability to earn future profits
Forecasts are difficult to make especially those concerning the future. In today’s world stock investing has become synonymous to forecasting! But the key to successful investing is having an analytical approach towards...
Information, like antibiotics, works best when consumed in the right dosage
Information is like an antibiotic. An antibiotic over dosage can have varied effects on our health, from causing complications to being lethal. But what’s so disastrous about having an information overload. Stock...
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...
Time to switch off media and focus on long-term investing
Till last several months, Media has been touting high equity returns and multi-bagger stock picks at expensive prices. But, it seems the positive news has stopped all of the sudden. All news has been perceived...
How to make losses less painful?
Psychology plays a major role in any decision making. There are ample studies to indicate that poor decision making can be attributed to a few key heuristics, leading to terrible consequences for the decision maker. One...
Investors’ common mistake during bullish market
You as an investor, may be considering trailing earnings or ROEs as base case for arriving at any valuation. The problem in this assumption is that high ROEs and margins are not sustainable as every company or industry...
Avoid Noise in long term investing!
Yesterday I had an interesting chat with one of our customers. We discussed various news and events. He suggested that we should include these into our research process. While its very valid point that we should keep...
Too good to be true?
In the fifth article of our Series on ‘The Most Important Thing’, we show you why if a certain investment is too good to be true, it probably is… Time and time again, the post-mortems of financial debacles include two...
Aliya Sayyed-Team MoneyWorks4meHow risky is that stock anyway…
“Riskier investments provide higher returns. If you want to make more money, the answer is to take more risk.” This is a common but incorrect perception of many investors, more so when the times are euphoric. Because if...