When the market loses 400 points in a single day, what do you do.
You have invested borrowed money or the money meant for your child's education or some money which you had in your bank deposit. Now you are cursing yourself for having entered this market.
Many a middle class people lose money and the rich become more rich. What do I do now?
If you are one of them asking above questions, then it is time you took some lessons in discipline.
The person with discipline and dedication makes money in the market. Both words used have tremendous depth and meaning. I will suggest the previous posts to up date yourself.
First things first.
Sell stocks which you have purchased on the basis of tips. Also sell those one rupee stocks, sell those companies which you are not aware of and cannot research that company.
Simple strategy.
1.Invest regularly. Stock market is the worst place to make fast money for a middle class person.
2.Invest in companies you know. They may appear costly but they will deliver.
Simple test. Name top five companies in the following business.
a. Software
b. Engineering
c. Textiles/Garments
d. Banking
e. Cement
f. Infrastructure
g. Hotels
h. Automobiles/Auto ancillaries.
The list can have any sector which you like. The point is what percentage of your investment is there in these top companies. If you have invested in good companies, there are bright chances that you will make/ recover some money. But if your basket has only one fruit, you are doomed.
3. Diversify among the top companies. Diversification will derisk you.
I have said before, the returns may reduce because of this strategy, but atleast your principle is secure.
10 to 20 percent of your money, which you can risk totally can be invested n good mid cap stocks.
End Note: The markets may go up or down, it always presents earning opportunities. Be smart to capitalize. Greed has killed many a goose.
Tuesday, December 12, 2006
Monday, December 04, 2006
The Basics of Investing
In times of bull run, you get many tips, many new entrants lose their shirt.
Stock market is an excellent way to invest and make money provide you hone your skills and are clear about your objectives. It requires tremendous discipline and character.
Freinds , here is a link to basics in investing, you may say same old drag, but mostb of the times wisdom is in retrospect. happy invetsing and take care.
My previous select recommendations like SBI, have done well.
nvesting is a complex exercise only because we insist on making it so. But the basic principles are simple. As simple that anyone can become a good investor just by following simple and easily understood rules, which also help avoid big mistakes. Here are my rules for investment success.
Develop a Plan: For your short-term goals, make sure you're taking appropriate risks. Invest money that you'll need in the next two years to five years in cash and short-term bonds. If you've taken on too much risk for short-term objectives, pull back now. There's no telling where the bottom of this market is. It's better to cut your losses and preserve the money you already have for short-term goals. For your long-term financial goals, consider equities.
Keep It Simple: Buy a diversified equity fund or an index fund for equity exposure and a floating-rate bond fund for fixed income exposure. These are the basics of the investment world. Sure, you can buy many other types of funds (Petro, MNC, Gilt, Fixed Maturity, Serial Plans etc), but it's hard to go wrong with these two. To keep fund selection simple, stick with a diversified equity funds of well-established fund families. Equities prove to be the best performing long-term asset class. Stay away from exotic speciality and sector funds, unless you have a huge risk appetite and you can take in your stride a 25% loss in a quarter.
Ignore the hot stocks and funds: If you buy this year's top-performing fund or stock, be prepared to see it at the bottom next year. The fancy academic expression for this phenomenon is -- Reversion to the Mean. But the old saying explains it just as well -- what goes up must come down.
link...http://www.valueresearchonline.com/learning/basics-rules.asp
http://content.icicidirect.com/ULFiles/UploadFile_20011224102625.asp
http://www.sharekhan.com/KnowledgeCentre/
Stock market is an excellent way to invest and make money provide you hone your skills and are clear about your objectives. It requires tremendous discipline and character.
Freinds , here is a link to basics in investing, you may say same old drag, but mostb of the times wisdom is in retrospect. happy invetsing and take care.
My previous select recommendations like SBI, have done well.
nvesting is a complex exercise only because we insist on making it so. But the basic principles are simple. As simple that anyone can become a good investor just by following simple and easily understood rules, which also help avoid big mistakes. Here are my rules for investment success.
Develop a Plan: For your short-term goals, make sure you're taking appropriate risks. Invest money that you'll need in the next two years to five years in cash and short-term bonds. If you've taken on too much risk for short-term objectives, pull back now. There's no telling where the bottom of this market is. It's better to cut your losses and preserve the money you already have for short-term goals. For your long-term financial goals, consider equities.
Keep It Simple: Buy a diversified equity fund or an index fund for equity exposure and a floating-rate bond fund for fixed income exposure. These are the basics of the investment world. Sure, you can buy many other types of funds (Petro, MNC, Gilt, Fixed Maturity, Serial Plans etc), but it's hard to go wrong with these two. To keep fund selection simple, stick with a diversified equity funds of well-established fund families. Equities prove to be the best performing long-term asset class. Stay away from exotic speciality and sector funds, unless you have a huge risk appetite and you can take in your stride a 25% loss in a quarter.
Ignore the hot stocks and funds: If you buy this year's top-performing fund or stock, be prepared to see it at the bottom next year. The fancy academic expression for this phenomenon is -- Reversion to the Mean. But the old saying explains it just as well -- what goes up must come down.
link...http://www.valueresearchonline.com/learning/basics-rules.asp
http://content.icicidirect.com/ULFiles/UploadFile_20011224102625.asp
http://www.sharekhan.com/KnowledgeCentre/
Thursday, November 23, 2006
Educative Blogs
Many a people are trying to educate on net. One such person is Mike. I have read an article of his, whih I like. I provide the link below.
Accumulating Money
To have wealth, in the financial sense, we have to accumulate money. A pretty obvious statement but how many of us actually try to accumulate money? Probably very few. And if we do, have we a set proper plan?The secret of accumulating money is to do so on a regular basis, no matter what our income may be. By saving money every month, and investing it wisely, we can all build a financial base. The compounding effect of money invested can be quite awesome if we leave it alone, other than to ensure that we are getting the best interest rate possible.
http://www.accumulate-money.blogspot.com/
Accumulating Money
To have wealth, in the financial sense, we have to accumulate money. A pretty obvious statement but how many of us actually try to accumulate money? Probably very few. And if we do, have we a set proper plan?The secret of accumulating money is to do so on a regular basis, no matter what our income may be. By saving money every month, and investing it wisely, we can all build a financial base. The compounding effect of money invested can be quite awesome if we leave it alone, other than to ensure that we are getting the best interest rate possible.
http://www.accumulate-money.blogspot.com/
Friday, November 17, 2006
ART
If u want a piece of art at very economical cost, contact below given number.Mr.J.S.Doddihal 09845719312A sample, more display in December-January.
Monday, November 13, 2006
One of the ways to earn on internet
Recently I am spending some time exploring different avenues of earning on internet.
Wednesday, August 02, 2006
I m back
Well the markets did correct. I am sure again many of the middle class would have lost money and the world of investing must seem very crazy. Old wise people will say, " I told you so". Fixed deposits may appear safe and better, at least no capital erosion.
Markets are rational, we dont have the brains to decipher their logic.
Keep studying and keep investing.
A link for those interested
http://www.valueresearchonline.com/story/storyview.asp?str=8982
Markets are rational, we dont have the brains to decipher their logic.
Keep studying and keep investing.
A link for those interested
http://www.valueresearchonline.com/story/storyview.asp?str=8982
Wednesday, May 24, 2006
Wednesday, April 05, 2006
RAGING BULL
There is nothing stopping the markets as of now. The contrarians may sound caution but everyone is deaf right now. Everone is looking like a fool (including yours humbly) having tried to predict the market. RONW, PE ratio, cash flows nothing has any value right now. Historical patterns are not there and someone is waiting to purchase at the higher level.
In all this I still advice caution. The markets may touch 16000 but will u be able to make money , will u be able to sleep peacefully. Invest smartly. If u have made profits, partially book them and divert your money into other asset class. Predominantly stay invested, but atleast15-25% of the profits should be booked. stock selection is the key.
When to sell is always a question. My suggestion
If u have 100 HLL shares , sell 60
If u have 100 Titan shares sell 70
If u have 100 Siemiens shares sell 35
If u have 100 Mahindra & Mahindra shares sell 60
Each individual stock which u have reassess them, put some time in researching your portfolio.
Those who want to enter the market for the first time, please select balanced mutual funds
HDFC Prudence
There are many good funds , pls visit www.valuresearch.com to select a five star rated fund.
If any one wants to take risks on individual stocks with minimum 1 year holding , then try
Raadan Media a southindia tv software producer,
HCL infosys, Zenith computers.
In all this I still advice caution. The markets may touch 16000 but will u be able to make money , will u be able to sleep peacefully. Invest smartly. If u have made profits, partially book them and divert your money into other asset class. Predominantly stay invested, but atleast15-25% of the profits should be booked. stock selection is the key.
When to sell is always a question. My suggestion
If u have 100 HLL shares , sell 60
If u have 100 Titan shares sell 70
If u have 100 Siemiens shares sell 35
If u have 100 Mahindra & Mahindra shares sell 60
Each individual stock which u have reassess them, put some time in researching your portfolio.
Those who want to enter the market for the first time, please select balanced mutual funds
HDFC Prudence
There are many good funds , pls visit www.valuresearch.com to select a five star rated fund.
If any one wants to take risks on individual stocks with minimum 1 year holding , then try
Raadan Media a southindia tv software producer,
HCL infosys, Zenith computers.
Friday, March 31, 2006
Kondratieff Cycle
First I apologise for going into hibernation without informing.
I again present contrararian views here. With respect to my post budget prediction I have had to eat my words, but individual stock recommendations have done well(not surprising!).
Without bothering about where the sensex is right now I recommend two articles to ponder over
http://www.valueresearchonline.com/story/storyview.asp?str=8775
http://www.angelfire.com/or/truthfinder/index22.html
I again present contrararian views here. With respect to my post budget prediction I have had to eat my words, but individual stock recommendations have done well(not surprising!).
Without bothering about where the sensex is right now I recommend two articles to ponder over
http://www.valueresearchonline.com/story/storyview.asp?str=8775
http://www.angelfire.com/or/truthfinder/index22.html
Tuesday, March 14, 2006
What can I purchase at this point of time?
Well it was difficult to answer this question, but knowing that market always provides opportunities for purchase as well as selling, I offered my advice to a freind.
My picks would be
SBI
Satyam
Pricol
KEC infrastructure
For those interested in penny stocks and if they are ready for some big risks and waiting period, the following stocks can be considered.
Continental Controls
Rexnord Electricals
I declare that I own the above two stocks.
My picks would be
SBI
Satyam
Pricol
KEC infrastructure
For those interested in penny stocks and if they are ready for some big risks and waiting period, the following stocks can be considered.
Continental Controls
Rexnord Electricals
I declare that I own the above two stocks.
Tuesday, March 07, 2006
Excellent Compilation
"Hindsight bias ;"
"EARTHQUAKES share some characteristics with financial markets. Both follow a power law.;"
"Hedonic treadmill;"
"opportunity-cost principle in economics;"
Gordon's dividend model;preference reversal
"recognition heuristics"
Black and Scholes (B&S) model
Game theory studies how we take decisions to maximise our benefits (payoffs).
"When alpha becomes beta "
"Physics of finance "
"The theory of allocation of time".
This are some of the phrases from the articles at Business Line. They are short, crisp and educative. Some with science background will also enjoy.
The link http://www.blonnet.com/iw/2005/03/20/stories/2005032000
641300.htm
http://www.thehindubusinessline.com/cgi-bin/bl2005.pl?mainclass=97&subclass=726
"EARTHQUAKES share some characteristics with financial markets. Both follow a power law.;"
"Hedonic treadmill;"
"opportunity-cost principle in economics;"
Gordon's dividend model;preference reversal
"recognition heuristics"
Black and Scholes (B&S) model
Game theory studies how we take decisions to maximise our benefits (payoffs).
"When alpha becomes beta "
"Physics of finance "
"The theory of allocation of time".
This are some of the phrases from the articles at Business Line. They are short, crisp and educative. Some with science background will also enjoy.
The link http://www.blonnet.com/iw/2005/03/20/stories/2005032000
641300.htm
http://www.thehindubusinessline.com/cgi-bin/bl2005.pl?mainclass=97&subclass=726
Monday, March 06, 2006
When to sell ?
If you have been an investor since many years, chances are you would have made lot of money if u would have held on to your good stocks. The question arises , when to sell. Well it is not easy unless u had predecided goals for yourself. There are many good advisors telling different strategies, but I think the following are worth considering.
1) If you need money , then sell.
2) If your asset allocation was pre decided, sell equities to balance your portfolio. Increase your exposure to gold, debts etc.
The second strategy is best , because it minimises your risk and maximises your returns in numerous ways.
1) If you need money , then sell.
2) If your asset allocation was pre decided, sell equities to balance your portfolio. Increase your exposure to gold, debts etc.
The second strategy is best , because it minimises your risk and maximises your returns in numerous ways.
Friday, March 03, 2006
Basics in Investing
6 years back I had learnt my basics by losing money and also from the Sharekhan site. I revisit the site and give u one of the link to their article. The whole series is excellent piece to read. It is another matter, regarding applying it. I also admire articles written by Sanjiv Pandiya in Valueresearch. Check them out
http://www.sharekhan.com/KnowledgeCentre/ChapterArticle.aspx?ArticleID=f8a9c502-0e0b-431f-9df8-144fb631fb40
http://www.valueresearchonline.com/story/storyview.asp?str=8662
http://www.valueresearchonline.com/story/storyview.asp?str=8703
http://www.sharekhan.com/KnowledgeCentre/ChapterArticle.aspx?ArticleID=f8a9c502-0e0b-431f-9df8-144fb631fb40
http://www.valueresearchonline.com/story/storyview.asp?str=8662
http://www.valueresearchonline.com/story/storyview.asp?str=8703
Thursday, March 02, 2006
Proven Wrong
For one who believes that the fudamentals are important, I acknowledge that even though the ego is hurt , it is good to be proven wrong about the sensex . This illustrates the point that you cannot time the market and predict the highs and lows of it. Equities are for long term. If you can keep your money locked for more than 9 years, then please go ahead and invest today. Also select industry leaders and stick to companies you know and understand.
Wednesday, March 01, 2006
NEw HIGHS
Well, the sensex is hitting new highs and my prediction that the markets will come down after budget has been proven wrong ! Or is there any merit in my suggesting that the markets will correct in near term. I still believe that from now till July the market will see decline in its level.
If you are a long term investor and u should always be one if u are investing in stocks, u can spread your purchases over next few months.
Regarding the basics which I had mentioned in the previous blog, I provide a link for information regarding asset allocation.
http://economictimes.indiatimes.com/articleshow/1420680.cms
If you are a long term investor and u should always be one if u are investing in stocks, u can spread your purchases over next few months.
Regarding the basics which I had mentioned in the previous blog, I provide a link for information regarding asset allocation.
http://economictimes.indiatimes.com/articleshow/1420680.cms
Monday, February 27, 2006
Basics
Doctors have a common quote amongst them that if the 'basics' are right then a person can tackle any situation and has answers for most of the problems.
I took upon writing this blog with the assumption that anybody who comes across it, is well versed with economics and personal finance. Honestly ? No.
Most of them want short cuts. Very few are ready to invest time and money to understand how to grow their money. People spend hours trying to buy their clothes or any other routine things, bargaining for 50-100Rs, but when it comes to investments they want expert advice and they will rely on any 'expert advice'. It only shows the lack of discipline and the inability to see the bigger picture. Most of my friends dont have any idea about the power of compunding, the simplest fundamental truth of all. Most of them have never heard of "Term insurance" plan and when I explain they think it is a big loss if u choose a term insurance plan. For majority of the people inspite of the "Bull run", stock market is a gambling den and mutual funds are some align concepts. I dont blame my friends. I was luck enough to have been introduced to economics. If you are someone u has not been able to follow what I have written so far, u can always contact me or leave a comment here. I shortly plan to upload all the 'basic ' information I have and reading which I have gained a fair knowledge regarding managing money. U can definitely benefit from it.
Let me make a disclaimer, I am a Doctor specialising in Cancer and have an avid interest in economics. I believe in Evidence Based Medicine, infact the Management guys have borrowed the concept and have started something called 'Evidence Based Management'. There are no short cuts to creating wealth.
I took upon writing this blog with the assumption that anybody who comes across it, is well versed with economics and personal finance. Honestly ? No.
Most of them want short cuts. Very few are ready to invest time and money to understand how to grow their money. People spend hours trying to buy their clothes or any other routine things, bargaining for 50-100Rs, but when it comes to investments they want expert advice and they will rely on any 'expert advice'. It only shows the lack of discipline and the inability to see the bigger picture. Most of my friends dont have any idea about the power of compunding, the simplest fundamental truth of all. Most of them have never heard of "Term insurance" plan and when I explain they think it is a big loss if u choose a term insurance plan. For majority of the people inspite of the "Bull run", stock market is a gambling den and mutual funds are some align concepts. I dont blame my friends. I was luck enough to have been introduced to economics. If you are someone u has not been able to follow what I have written so far, u can always contact me or leave a comment here. I shortly plan to upload all the 'basic ' information I have and reading which I have gained a fair knowledge regarding managing money. U can definitely benefit from it.
Let me make a disclaimer, I am a Doctor specialising in Cancer and have an avid interest in economics. I believe in Evidence Based Medicine, infact the Management guys have borrowed the concept and have started something called 'Evidence Based Management'. There are no short cuts to creating wealth.
Sunday, February 26, 2006
PHILANTHROPY
Well it is sunday and we need a different theme to relax. We all want to make money. let us assume that we are all super-rich, that is beyond what we can count, then what will we do with that money. It is not easy to answer because being super rich, u have all the luxuries and all the gadgets. So, let us see what way the rich people have spent their money and what the society thinks about it.
Philanthropy , embodied by many great people is an universal way in which the rich have partly used their money.
Examples include past giants like Andrew Carnegie, John D. Rockefeller, Joseph Rowntree and William Wilberforce, Tatas.
Presently Bill Gates hogs the limelight for the same reason.
Britain's Dame Anita Roddick, founder of the Body Shop, and Arpad Busson, a colourful French hedge-fund boss. India's new wealthy, such as Azim Premji and Nandan Nilekani, two Bangalore technology-firm bosses, are also becoming keen philanthropists. If I have ighnited your interest in this area, u can check out the following links.
Philanthropy , embodied by many great people is an universal way in which the rich have partly used their money.
Examples include past giants like Andrew Carnegie, John D. Rockefeller, Joseph Rowntree and William Wilberforce, Tatas.
Presently Bill Gates hogs the limelight for the same reason.
Britain's Dame Anita Roddick, founder of the Body Shop, and Arpad Busson, a colourful French hedge-fund boss. India's new wealthy, such as Azim Premji and Nandan Nilekani, two Bangalore technology-firm bosses, are also becoming keen philanthropists. If I have ighnited your interest in this area, u can check out the following links.
- http://www.economist.com/surveys/displaystory.cfm?story_id=5517605
- http://www.fordfound.org/news/view_news_detail.cfm?news_index=118
- http://en.wikipedia.org/wiki/Philanthropists
- http://en.wikipedia.org/wiki/Special:Search?search=indian+philanthropists&fulltext=Search
- http://www.answers.com/topic/philanthropist-1?method=22
To create wealth to distribute requires effort and discipline. So what to buy and what to sell, to make money ?
Patience is required. Hold cash for some time if u can. Buying opportunities are there but let us take some deep breaths before we resume to buy and sell.
Saturday, February 25, 2006
Have GUTS
There is always new information coming into the market. Markets normally over react to the news. Remember the May of 2004 when the markets had tanked by around 600 points to 4500 level and there were no buyers. Those who did buy on that day must be laughing all the way to the bank now.
Last week HCL Infosystems saw a great fall in its share price because it lost its monopoly distribution of Nokia gadgets, yes HCL is a distributor for many companies including NOKIA TOSHIBA etc. It is a bad news for the company, but what price is correct for HCL Infosystem stock will be slowly determined. If u look at the purchases by few leading mutual funds in last few months, they had purchased HCL heavily , while the promoters themselves have sold the stock. Behind all this background it is very difficult to suggest whether to buy or sell this stock.
I am a great fan of Shiv Nadar and also believe if the people behind the company are good , the stock will ultimately perform well. If the budget is going to be favorable to the hardware industry , there r many rumours. My suggestion , go ahead, purchase HCL as well as Zenith computers.
Ranbaxy is another company with lot of bad news floating around. So u can purchase Ranbaxy on declines.
Overall I reiterate the markets will fall after the budget. I am sticking my neck out.
In international market sell the tobacco companies. Read below
Last week HCL Infosystems saw a great fall in its share price because it lost its monopoly distribution of Nokia gadgets, yes HCL is a distributor for many companies including NOKIA TOSHIBA etc. It is a bad news for the company, but what price is correct for HCL Infosystem stock will be slowly determined. If u look at the purchases by few leading mutual funds in last few months, they had purchased HCL heavily , while the promoters themselves have sold the stock. Behind all this background it is very difficult to suggest whether to buy or sell this stock.
I am a great fan of Shiv Nadar and also believe if the people behind the company are good , the stock will ultimately perform well. If the budget is going to be favorable to the hardware industry , there r many rumours. My suggestion , go ahead, purchase HCL as well as Zenith computers.
Ranbaxy is another company with lot of bad news floating around. So u can purchase Ranbaxy on declines.
Overall I reiterate the markets will fall after the budget. I am sticking my neck out.
In international market sell the tobacco companies. Read below
Friday, February 24, 2006
Sell Tobacco companies
Tobacco companies especially BAT that is British American Tobacco and Imperial Tobacco Limited are going to have a tough time. There may be enough evidence to say that they have wilfully caused public harm. Sell both the stocks.
Bearish View
Yesterday I mentioned about genset companies . The fact of the matter is that there is acute shortage of electricity in Maharashtra. Ofcourse Maharashtra is not the whole of India, but Mumbai ,the commercial hub, is in Maharashtra. The worrying thing is that power cuts are affecting Mumbai also, u may ask why it should not.
Look at it the other way, Mumbai contributes around 40 % of direct tax revenue. If there is power shortage, will business in Mumbai be not affected. My common sense approach tells me that the situation is grim and sooner or later the shortage of electricity will reflect somewhere or the other.
Risks come in various sizes and shapes. But with each risk there is an opportunity also.
The next three quarter results will be interesting to watch, especially those companies which are based in Mumbai and Maharashtra.
Look at it the other way, Mumbai contributes around 40 % of direct tax revenue. If there is power shortage, will business in Mumbai be not affected. My common sense approach tells me that the situation is grim and sooner or later the shortage of electricity will reflect somewhere or the other.
Risks come in various sizes and shapes. But with each risk there is an opportunity also.
The next three quarter results will be interesting to watch, especially those companies which are based in Mumbai and Maharashtra.
Thursday, February 23, 2006
Daily Business
Investing money cannot be a daily business. If you buy daily and sell daily then u r a gambler, relying more on luck. Also u r spoiling ur health and neglecting your own true work. Inspite of all this realization markets make u crazy at times. No amount of cautious words can bring sanity. Being a contrararian can make u seem foolish.
Evaluating risk is not possible by everbody. Infact even the insurance industry fails to do it often. The 'bird flu' risk and its impact cannot be easily figured into. Analysts suggest purchasing cipla since it produces Tamiflu the drug which is used to control bird flu.
Stock market in India is awaiting the budget. To be honest not really. The course of the sensex may be up or down but there is money always to be made. What is required is discipline , which is hard to come by. Also as i previously mentioned "the invisible hand " is always at work. Mere mortals cannot fathom it easily.
What can be our daily business? Strenghtening one's fundamentals. Keep reading and exploring.
A magazine recommends KEC international as a good stock and u find that in the same month two leading mutual funds have dumped it. Another fund dumped it belatedly yesterday. Any body working at KEC can probably answer this.
By the way one of my uncle working in a genset marketing company visited me. The kind of power shortage had brought him to Mumbai. Cummins are leading players in this area and they are not able to deliver gensets for their clients as they are overbooked.
On parting note for today, Satyam is poised for a good year. U can invest and stay invested.
Evaluating risk is not possible by everbody. Infact even the insurance industry fails to do it often. The 'bird flu' risk and its impact cannot be easily figured into. Analysts suggest purchasing cipla since it produces Tamiflu the drug which is used to control bird flu.
Stock market in India is awaiting the budget. To be honest not really. The course of the sensex may be up or down but there is money always to be made. What is required is discipline , which is hard to come by. Also as i previously mentioned "the invisible hand " is always at work. Mere mortals cannot fathom it easily.
What can be our daily business? Strenghtening one's fundamentals. Keep reading and exploring.
A magazine recommends KEC international as a good stock and u find that in the same month two leading mutual funds have dumped it. Another fund dumped it belatedly yesterday. Any body working at KEC can probably answer this.
By the way one of my uncle working in a genset marketing company visited me. The kind of power shortage had brought him to Mumbai. Cummins are leading players in this area and they are not able to deliver gensets for their clients as they are overbooked.
On parting note for today, Satyam is poised for a good year. U can invest and stay invested.
Wednesday, February 22, 2006
Todays
Well for some reason i recommend SBI, Bnk of Baroda and Teledata system.
The last recommendation is pure risk , the other two are solid till u discover.
The last recommendation is pure risk , the other two are solid till u discover.
follow
See valueresearchindia.com , www.economictimes.com , the former for information regarding mutual funds and the latter has information on innumerable companies.
Tuesday, February 21, 2006
To take stock or not
I have an ongoing affair with the stock market. I am fascinated by the " The Invisible Hand".
There is no short cut to make money, it is a science as well as a art. Timing is very important. Using one's common sense is even more important.
My recommendations are based on combination of fundamentals, valuation and basically the simple reading of classifieds, that job recruitments.The market in India is right now very hot. I dont have any short term recommendations. If u r interested in holding for some period than u can consider the following recommendations.
Rolta at 200 Rs.
NTPC at 100-110 Rs.
Ranbaxy at 400 Rs.......... it is in an interesting phase.
These are for people already in the market. For new entrants my recommendation is to try mutual fund route.
Also have ur goals and objectives clear. U will get plenty of advice regarding this on many websites.
My personal recommendation is if u have 100 Rs to invest today, u should do it systemically and u should diversify. By diversification I mean 70-80% in equities and 10 % in gold and rest in whatever u like. The equities can comprise mutual fund or if direct exposure is sought I advice proper study by each individual investor. Dont buy becos somebody else asks u to buy. Buy the stories u know, the business which u understand and also the business which u dont understand, bcos then only u will be able to create wealth.
When selecting ur life partner, or school for ur son , or ur doctor , what efforts u take, please take the same effort when investing.
There is no short cut to make money, it is a science as well as a art. Timing is very important. Using one's common sense is even more important.
My recommendations are based on combination of fundamentals, valuation and basically the simple reading of classifieds, that job recruitments.The market in India is right now very hot. I dont have any short term recommendations. If u r interested in holding for some period than u can consider the following recommendations.
Rolta at 200 Rs.
NTPC at 100-110 Rs.
Ranbaxy at 400 Rs.......... it is in an interesting phase.
These are for people already in the market. For new entrants my recommendation is to try mutual fund route.
Also have ur goals and objectives clear. U will get plenty of advice regarding this on many websites.
My personal recommendation is if u have 100 Rs to invest today, u should do it systemically and u should diversify. By diversification I mean 70-80% in equities and 10 % in gold and rest in whatever u like. The equities can comprise mutual fund or if direct exposure is sought I advice proper study by each individual investor. Dont buy becos somebody else asks u to buy. Buy the stories u know, the business which u understand and also the business which u dont understand, bcos then only u will be able to create wealth.
When selecting ur life partner, or school for ur son , or ur doctor , what efforts u take, please take the same effort when investing.
Creating Wealth
Well i discovered that i can have multiple blog sites depending on my varied interests, so i decided to create one for my economic activities. I am Cancer Speciaslist but interested in economic activities since my MBBS days. I strongly believe that science requires efficient business models to sustain itself.
I have read parts of Adam Smith's Wealth of Nations and also Ayn Rands Atlas Shrugged.
Also a great scientist Rudolph Virchow has said" The improvement of medicine may eventually prolong human life , but the improvement in social conditions can achieve this results more rapidly and more successfully.
Hope this blog brings out the best in me and others to create better human conditions by creating wealth.
I have read parts of Adam Smith's Wealth of Nations and also Ayn Rands Atlas Shrugged.
Also a great scientist Rudolph Virchow has said" The improvement of medicine may eventually prolong human life , but the improvement in social conditions can achieve this results more rapidly and more successfully.
Hope this blog brings out the best in me and others to create better human conditions by creating wealth.