KINGFISHER, VIJAY MALLYA AND SOCIAL PSYCHOLOGY

I am writing after a long break. The markets are in the doldrums, not going anywhere. Good businesses, some select few are selling at attractive valuations. I have partially bought those businesses and partially I am sitting on some cash to further purchase some more businesses if I get an opportunity. On the other side, I have been busy with work. And busy with a lot of reading. You may be surprised with this unusual blog. But having read so much about Vijay Mallya on social media and the news channels– India wants to know. I sometimes wonder that India wants to know only about Mallya and not anything else???? Not about our politicians who swallow bigger sums like a python to only lie in a corner till they digest the last bundle and then hunt for a new prey. Actually it is about how we all get influenced by vivid imageries and form opinions and then take decisions based on them. They may be stupid  Continue reading

Posted in Behavioural Finance, Uncategorized | 2 Comments

LOSS AVERSION AND WHY WE STICK TO SUB STANDARD CHOICES IN LIFE

I have a friend. A Brigadier in the Army, Mohan Lal Aswal. He came to know that I have an inclination towards personal finance. He also attended one of my talks which I occasionally give on request to a group of long term investors.  He was convinced about whatever I spoke and whatever I had advised people on. Especially on Insurance. A few days back, he rang me up and asked some advice on insurance policies which his wife had bought for his children who are both working. Continue reading

Posted in Behavioural Finance, Insurance | Leave a comment

WHY I WRITE MORE BLOGS WHEN MARKETS GO SOUTH?

A lot of my friends and well wishers who have joined in as fresh readers and know me from earlier, when I was a teenager, have been pleasantly surprised with my foray into the financial world which is totally divergent from my regular job or routine. Psychology,  History and Finance have been subjects which I was Continue reading

Posted in Behavioural Finance | 4 Comments

MARKETS ARE SCREAMING BUYYYYYYYYY

I wrote some resolutions a week back. A week is a long time in stock markets. The markets worried about China have dived south. And the entire Indian stock markets have also been hit by the Chinese wave. Where do we stand? What should you do?  Continue reading

Posted in Stock Investing | Leave a comment

RESOLUTIONS AND LIFE IN 2016

I wish all of you a very happy 2016. May the lords be benevolent upon you and your kith to shower their blessings and keep you engaged in positive pursuits.

The new year is just a date in a calendar. Actually, it becomes a benchmark to start new events or take stock mentally of what we desire to do. And we call this activity resolutions. Actually, we desire to develop a new habit or break a bad one.   Continue reading

Posted in Uncategorized | 4 Comments

DEPRIVATION SUPER REACTION SYNDROME AND MY WIFE

My wife is not a value investor. She is an impulsive buyer. She is under the spell of American Marketing Whiz Kids and Psychologists. I have seen her a number of times going for shopping to malls. The shopping mall is a completely American invention which encourages useless and impulsive buying and plays on your natural tendency to be confused by choices. The Americans have done the best studies on human behaviour and the findings of their Nobel Laureates have been very well used by the advertising and marketing agencies to influence our minds. Continue reading

Posted in Behavioural Finance, Personal Finance | Leave a comment

DEBT FUNDS ALSO LOSE

Most investors think that Debt Mutual Funds are a safe bet. It is a myth. Debt funds may not be as risky as equity funds because they invest in risk free assets like Government Bonds, T-Bills, G-Secs,  FDs, etc. But they can also erode your Continue reading

Posted in Fixed Income, Mutual Funds | Leave a comment

BE A PATIENT OPPORTUNIST

I have not written for a long time because there was nothing which was happening much in the markets. I mean the markets were at stretched valuations. Then in the last month, the values of businesses collapsed and they are again cheap. Some good businesses like Axis Bank, Noida Toll Bridge and Vaibhav Global have  Continue reading

Posted in Stock Investing, Value Investing | 2 Comments

UNDERSTANDING HOLDING COMPANIES : A PRIMER

One of my readers, Anshul, has been asking me, “Why do companies have a Holding Company? Why don’t they do direct business? A case in point is Balmer & Lawrie Investments Ltd vis a vis Balmer & Lawrie Ltd. Continue reading

Posted in Uncategorized | 2 Comments

GREEK DEBT CRISIS SIMPLIFIED. GREXIT: A GRECIAN TRAGEDY

As I wrote in my previous post, I just returned from Greece. There seemed to be no crisis. The people were happy, enjoying, slightly worried perhaps for pensions, but nothing more. When I watch the news, the background building is the Greek Parliament at the Syntagma Square. All the crowd gathers there Continue reading

Posted in Macro Economy | Leave a comment