Archives for 2011

I hate to sound pessimistic, but it looks as though the global banking system led by European banks is edging its way towards another big collapse.

That means in just a few short months, stocks could be back at their 2009 lows.

And if the last few weeks are any indication, the impact will also be felt in India…as it did after Lehman Brothers collapsed in September 2008.

But don’t expect things to capitulate so fast. At least not given that central bankers in the US and Europe will attempt one more Herculean effort to ‘save’ things.
[Read more…] about It’s 2008 All Over Again

iPods, iPads, and iPhones would have baffled the German social scientist Max Weber, who died in 1920.

The father of modern sociology, however, would surely have understood something about the man behind those futuristic gadgets.

Weber defined the ‘charismatic leader’ as one whose influence stems from almost preternatural insights and imagination, and who inspires devotional loyalty from his followers.

This definition adds up to an uncanny description of Steve Jobs of Apple.

Weber also argued that organizations structured around a charismatic leader are doomed to lose their vigor after the great one leaves the scene.
[Read more…] about Steve Jobs Resigns from Apple: Lessons for Indian Investors

If this is a snake…

Then what is this?

A drunken snake?

Yes, you are right, this is a drunken snake! And why not? If a sober can walk like a snake under the influence of alcohol, a snake can move like a sober under the influence of alcohol.
[Read more…] about Of Smart Central Bankers, Drunken Snakes, and Stock Prices

“If you can keep your head when all about you are losing theirs, then you probably haven’t been following global financial markets over the past few weeks.” Thus went the first paragraph of a report I recently read on Bloomberg.

The dizzying price volatility – across asset classes and indifferent to national borders – might be taken as evidence that the market has lost its anchor to fundamentals.

Data Source: Yahoo Finance [Read more…] about This is Not a Time for Heroism

One of the three resources – apart from your brain and willingness – you need to become a successful investor yourself is – Time.

Time is precious…even more precious than money, simply because you cannot save it.

You cannot set aside time for future use as you can money, food, fuel, or a number of other things.

Any attempt to save time by not using it is futile. What happens if you sleep eight hours and try to save the rest of the day by doing nothing? At the end of the day, the unused hours are gone forever.
[Read more…] about Investing in Stock Markets? Take Care of Your Most Precious Resource

The equation is simple.

Single Education (MBA/Engineering) = Ego (I can do nothing wrong).

Double education (MBA + Engineering) = Super Ego (I’m doing everything right).

Greed = I, me, myself!

Double education + Greed = I’m doing everything right…for myself!

If you haven’t already, sign up for our daily e-letter, The Safal Niveshak Post, and claim a Free copy of our Special Report – “10 Big Lies You’ve Been Told About Investing” – to be released on 20th August 2011. The Safal Niveshak Post covers deep insights on investing to help you navigate the stock markets with confidence. It’s free, and I’m sure you’ll get a lot out of it. Click here to sign up.

What separates an investor from a speculator?

Of course they look different. While an investor is generally calm and composed, a speculator is mostly agitated!

Anyways, the serious answer is – It’s not what they choose to buy but how they choose it.

At one price, any stock could be a speculation; at another (lower) price, it can become an investment.

And in the hands of different people, the same stock – even at the same price – could be either a speculation or an investment. It all depends on how they understood it and how honestly they assessed their own limitations.
[Read more…] about Are You an Investor or a Speculator?