Archives for December 2011

3 Great Investing Lessons from Dev Anand

Image Source: The Hindustan Times

“What is Dev Anand doing on a website dedicated to stock market investing?” you might be thinking. “Agreed, people are remembering the most romantic hero of Indian cinema after his demise, but still, what lessons can an investor take from him?”

See, it is human nature to overlook the importance of those who are here and now. Those who are great and live among us seem more normal because they’re breathing the same air that we are.

But we realize the greatness of such people only when they are gone. Like now, when Dev Anand is no longer with us, I realize some important life lessons that he epitomized.

So, I’ll pause today and remind myself of the 3 important lessons I, as an investor, can take from the legend that was Dev Saab. [Read more…] about 3 Great Investing Lessons from Dev Anand

“I Love Safal Niveshak…” Contest

The “I Love Safal Niveshak” Contest is now closed. Thanks to everyone who submitted an entry. Here is the list of winners

The Safal Niveshak movement of helping small investors become independent, smarter, and successful in their investing is yet to complete six months of operations.

But even in this short time, I am proud to announce one important milestone that Safal Niveshak has achieved.

The Safal Niveshak Post, my free daily e-letter on investing, has crossed 200 readers (excluding myself :-)).

If you are already a subscriber of The Safal Niveshak Post, I thank you for being there, and look forward to continue to provide you invaluable ideas on investing for times to come.

However, if you are yet to sign up to The Safal Niveshak Post, I welcome you to sign up now and experience the power of simple ideas on investing that can help you become an independent, smarter, and successful investor.

Anyways, to celebrate the crossing of the 200 subscribers milestone, I announce this contest [Read more…] about “I Love Safal Niveshak…” Contest

How Many Minutes Did You Waste Today?

Time wasted “If you spend more than 13 minutes analyzing economic and market forecasts,” the famous investor, Peter Lynch, once remarked, “you’ve wasted 10 minutes.”

I found myself thinking about Lynch over breakfast recently as I was skimming financial headlines in the newspaper.

Lynch was a ‘numbers guy’ who understood the limitations of numbers. And through daily practice, I’m also trying to do that.

By the way, here are some forecasts I read today…
[Read more…] about How Many Minutes Did You Waste Today?

You May Want to ‘Alt-Ctrl-Del’ These Stocks from Your Portfolio

Before the credit crisis struck in 2008, corporate bankruptcy was the last thing on investors’ minds. It was easy for companies to raise cash at will.

However, over the past three years, times have changed considerably. The number of companies announcing downward revisions to their future growth estimates has increased. Those that are seeing rising pressure on their balance sheets can also be found in plenty.

This means that out-of-favour investment measures, such as Edward Altman’s Z scores (or Altman Z-Score), are being dusted down.

What’s Altman Z?
This system was originally devised in 1968 by Edward I. Altman, who was, at the time, an Assistant Professor of Finance at New York University. He framed this score to warn investors about firms at risk of going bankrupt. Over the years, it has also been used to help investors find the companies that are best able to withstand bankruptcy.
[Read more…] about You May Want to ‘Alt-Ctrl-Del’ These Stocks from Your Portfolio