Archives for June 2017

Small Circles: The Theory of Mastery in the Art of Learning and Investing

June 27, 2017 | 9 Comments

One of the best books on the art of learning I’ve read is, well, The Art of Learning by Josh Waitzkin.

Josh is a champion in two distinct sports – chess and martial arts. He is an eight-time US national chess champion, thirteen-time Tai Chi Chuan push hands national champion, and two-time Tai Chi Chuan push hands world champion.

In his book, Josh recounts his experiences and shares his insights and approaches on how you can learn and excel in your own life’s passion, using examples from his personal life. Through stories of martial arts wars and tense chess face-offs, Josh reveals the inner workings of his everyday methods, cultivating the most powerful techniques in any field, and mastering the psychology of peak performance.

One of my favourite chapters from Josh’s book is titled – Making Smaller Circles – which stresses on the fact that it’s rarely a mysterious technique that drives us to the top, but rather a profound mastery of what may well be a basic skillset.

Investing and the Five Laws of Holes

June 23, 2017 | 8 Comments

Centuries ago, a Chinese King was sitting in his cabinet meeting discussing the poor economy of his country. One economist said, “Sir, we can’t do anything about it. It’s the Law of Supply and Demand.”

The King said, “I’m the King. I will repeal that Law!” The Cabinet kept quiet, but one brave soul said, “Sir, you cannot repeal the Law of Supply and Demand. It’s like the Law of Gravity.”

And the King said, “I’m the King. I will also repeal the Law of Gravity!”

Obviously, this story is purely fictional. But the message that comes out is clear – You cannot repeal some laws that govern this universe.

Like the Law of Gravity, and maybe…

Announcing Camp Millionaire – Money Workshop for Children

June 21, 2017 | 7 Comments

Given how important financial skills are to navigating life, it’s surprising that our schools don’t teach children about money.

How many of us look back at our childhood and wish we would’ve been taught more about money? A lot of people graduate from college without any idea how to manage their money or balance their bank account. Maybe you were one of them.

Now that you’ve learned more about managing your money right, I am sure you want to help your kids not make the same mistakes. But then, even when many parents know it’s important to teach their children about money matters at a young age, most don’t know where to start or how to go about it.

I have been through this situation wherein, despite knowing what to teach my kids about money, I lacked the structure and skills to teach them in the way they would learn best i.e., through games and fun-filled activities.

This was till I met Rachana Thamankar of Thrifty Gene. More on her and her initiative later, but let me take the pleasure to introduce you to a structured, games and activity-based workshop for kids to teach them about money and investing.

Why I Don’t Talk About My Stocks Publicly, And Why You Shouldn’t Either

June 19, 2017 | 15 Comments

It was sometime in the middle of 2008 when the realization of a global financial crisis had finally settled on the Indian stock market. I was working on my job as an analyst.

One stock – an Indian engineering major – I had recommended to our clients at the start of the year had fallen around 30% since my recommendation. Not just the stock price, the business had started to wobble. But I closed my eyes to that because my recommendation was now public and many clients would have bought it in their portfolios. To change my view after a 30% cut in stock’s price, however honest I would have been to accept my mistake, would have been a disaster.

Now, this wasn’t just one example that I can think of from that time. There were a few similar such recommendations I and my team had made then.

Some stocks had fallen just because the markets were down. But a few had fallen because their underlying businesses were also bouncing around on a rough wicket.

“What would our clients think of us,” I asked my colleague, “If we change our view now after the stock has already declined? It would hit the trust our clients have on us!” He agreed.

Safal Niveshak Stream – The Powerful Effect of Compounding Goodwill

June 17, 2017 | 2 Comments

Some nice stuff I am reading, watching, and observing at the start of this weekend…

Of Greater Fools and Bubbles

How many greater fools does it take to make a bubble? An old but highly relevant post from Jason Zweig…

Economists have struggled and failed to explain why markets turn into manias. Some have denied bubbles exist; others have argued bubbles must somehow be “rational.” Often, the argument is that bubbles are caused by “uninformed” traders, or “dumb money,” while the “smart money” sits on the sidelines.

The latest findings suggest, however, that bubbles might be caused not by traders who lack information but by those who have too much.