INFLATION INDEXED BONDS 2013

Posted on December 23, 2013 by Fauji

The Government of India, is issuing Inflation Indexed National Savings Securities- Cumulative, 2013 or Bonds  with effect from December 23, 2013 to December 31, 2013. The salient features of those bonds are as listed below:- Continue reading →

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ARE TAX FREE BONDS WORTH INVESTING?

Posted on December 22, 2013 by Fauji

In the last few days, there has been a flurry of Tax Free Bonds issued by various Institutions. A number of people have queried about them. 

They are a useless investment option. You might as well put your money in DSOPF/PPF/Provident Fund. The bonds do not give any real return as inflation is so high that Continue reading →

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THE INTELLIGENT INVESTOR

Posted on December 10, 2013 by Fauji

If there was only one book which I had to recommend to anyone desirous of investing in stock markets to read, it would be Benjamin Graham’s famous book Intelligent Investor. The book was first published in 1949. But has remained contemporary till date. The wisdom in this book must be assimilated by every stock market enthusiast. The earlier the better. 

Unfortunately this book is not taught in most of the Indian MBA institutes or CA institutes. I have met scores of mutual fund sellers and stock brokers who are not even aware of this book. If Graham’s Security Analysis is the Bible of stock investing, Intelligent Investor  is the Torah of stock investing. Continue reading →

Posted in Book Reviews / Recommended Reading | 4 Comments

ELECTION RESULTS AND A JUMP IN INDIAN STOCKS

Posted on December 9, 2013 by Fauji

Election results to four states of India have been announced yesterday. The pleasant surprise for Indians in general and me in particular is the success of Aam Aadmi Party(AAP). I just happened to give a “white” donation to them towards their cause. It augurs well for the Indian democratic system. Parties like Congress, BJP and other regional parties would be forced to change their game plans. AAP is a game changer. Like Nirma challenging Hindustan Lever. A David vs Goliath. It Continue reading →

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The Sad Truth about IPOs

Posted on December 6, 2013 by Fauji

Benjamin Graham, the father of value investing, writes in ‘The Intelligent Investor’…

“In every case, investors have burned themselves on IPOs, have stayed away for at least two years, but have always returned for another scalding. For as long as stock markets have existed, investors have gone through this manic-depressive cycle.

“In America’s first great IPO boom back in 1825, a man was said to have been squeezed to death in the stampede of speculators trying to buy shares in the new Bank of Southwark. The wealthiest buyers hired thugs to punch their way to the front of the line. Sure enough, by 1829, stocks had lost roughly 25% of their value.”

Over my 23 years of experience in the stock markets, I have not come across any IPO at least in Continue reading →

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POWERGRID IPO

Posted on December 5, 2013 by Fauji

Do not subscribe to any IPOs and therefore not to PowerGrid IPO either.

Why? Because all IPOs are meant to benefit the company, the merchant bankers of the issue and brokers. Everyone else except the shareholder. So, as a matter of practice just stay away. The same stock will be available cheaper after a while in the market. The government undertakings may leave 10% on the table for the retail investor but it is not worth it.  Continue reading →

Posted in Personal Finance, Stock Investing | 8 Comments

IF YOU ARE FED UP WITH STOCK MARKETS, YOU ARE NOT THE ONLY ONE

Posted on September 4, 2013 by Fauji

I have been investing in Indian stock markets for the past 22 years. And I guess I am getting exasperated. What with all the behavioural economics, Charlie Mungers, Ben Grahams, Kahnemans of the world. I even do not mind eating crow and accepting that may be I was wrong in terms of Gold as an investment. Manmohan Baba and  his band of 40 thieves have brought me to this brink.  Where does the problem actually lie? Continue reading →

Posted in Macro Economy | 6 Comments

DEPRECIATION OF RUPEE AND AFFECT ON SHARES

Posted on August 25, 2013 by Fauji

Where will the Rupee go, was a common query, in the past few weeks? As if the Rupee had feet. It is an inconsequential question for a common investor. It is important for a hedge fund. It is important for an importer. It is important for a currency trader. It is important for the government as it subsidizes diesel and kerosene. For all others it is just intellectual masturbation. Continue reading →

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BLACK FRIDAY : SENSEX CRASH OF 780 PTS

Posted on August 17, 2013 by Fauji

Yesterday the BSE sensex took a nose dive. Banks and rate sensitive businesses took a huge beating. I think the markets are presenting an opportunity to buy some quality stocks at attractive prices. Like a sale on your favourite Levis jeans.  Continue reading →

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BEST BUY STOCK IDEA

Posted on August 12, 2013 by Fauji

A best buy  stock idea  by FaujiFinance. You will need to enter your name and email before downloading the report. Your email address is safe with us and will not be disclosed to anyone.

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