Category: Investing
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Timeless Lessons in Investing from Warren Buffet’s Annual Shareholder Letters
Warren Buffet, chairman of Berkshire Hathaway Inc, is widely regarded as one of the greatest investors of all time. This post ,is a collection of some timeless lessons in investing, in his own words, shared by Buffet in his annual letters to shareholders of Berkshire Hathaway Inc. Read on! In investing, outstanding long-term results [are]…
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How to Invest in Equities when Interest Rates are rising?
Recently, the world has been grappling with effects of Inflation. In my previous post we had discussed in some detail, the problem of inflation and the reasons behind the recent increase in interest rates across a majority of economies round the world; including India. Some of our learnings from the post are as below: The…
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Should Retail Investors Invest in Earlystage Startups?
Investing in early stage startups might seem a rosy proposition for many retail investors with its lure of multibagger returns. There are however, significant risks factors associated with investing in startups which you as a small investor should be aware of. In this post, we will decode some of the risks and rewards associated with…
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How to Diversify your Stock Portfolio
Diversifying your stock portfolio by investing in a collection of stocks might be an effective way of reducing the risks associated with investing in stocks. So before we dive further into this discussion about using diversification as a tool to manage your portfolio risk, let us try and understand first what ‘risk’ actually is. Risk…
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How Are Investors Scammed In the Stock Markets
Retail investors often fall prey to a particular type of scam, involving penny stocks, that is prevalent in the stock markets. The Pump and Dump Scam – as it is popularly called; involves a group of operators fraudulently increasing (pumping up) the price of a stock they hold, by spreading market rumours and then selling…
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Can Inclusion in an Index Increase the Price of a Stock?
Can the price of a stock increase just by the virtue of it being included in an Index? The answer is yes! The inclusion of a particular stock in an index can lead to an increase in the price of the stock. But before we explain how this can happen, we need to understand what…
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Investing In Your First Stock
I keep encouraging my friends to invest in the stock markets. That is even at parties! Frustrated, someone finally asked me, “Which stock should I buy as my first investment?” I told him that my job is not to recommend individual stocks; but to help him pick the right stock worthy of him first investment.…
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What Makes a Company a Good Investment Fit?
Investors in the Financial Markets are always on the look out for good companies to invest in. In this post, we will discuss some of the aspects that you must look into while analyzing whether a company is a good investment bet. Competitive Advantage: What competitive advantage does the company, you are looking to invest…
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What Is a Dead Cat Bounce?
The term dead cat bounce is associated with the stock or the securities market. A dead cat bounce refers to a situation where stock prices rally temporarily, in a bear market, before continuing the fall again. When the financial markets experience a prolonged fall in asset prices, we call it a bear market. A rally…
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Sandy is a Smart Investor! Be Like Sandy
Sandy is a smart stock market investor. He is rational and takes decisions based on facts. In this post, Sandy tells you what to do and what not to do as your undertake your journey in the world of stock market investing. Be a smart investor! Be like Sandy! 1. Sandy believes that knowledge of…
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How Does a Cut in Corporate Tax Impact the Stock Markets
On 20th September 2019, India’s Finance minister in a bid to revive the Indian economy, announced a cut in the corporate tax rate from 30% to 22%. The markets reacted positively to the news, with the Benchmark Indices – the Sensex and the Nifty witnessing the largest single-day rally in almost a decade (a rise…
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What Causes Stock Prices To Move Up or Down
What causes Stock Prices to change? Why do some stocks go up and others fall? In this post we discuss what causes this change in stock prices. However, before we begin, let us first get an understanding of how stocks are traded. Stocks or shares are traded in a marketplace known as the Stock Exchange.…