Wit. Wisdom. Value Investing.
When in doubt, follow. This is an apt quote on the behaviour of us humans.
We generally draw comfort in going with the majority, or the consensus.
The problem is that we have very less control on such behaviour, as evolution has equipped us with this tendency of running a rat race.
Yes, you read that right. We are all running several rat races, whether in our work lives or when it comes to investing our money.
[Read more…] about The Problem With a Rat Race is That Even If You Win…
A few interesting items for your reading pleasure:
- The master speaks! Buffett: The lower stocks go, the more I buy (CNN Money)
- Nice chart. Economic Expansions and Recessions (The Big Picture)
- Good read. ‘Too big to fail’ is too dumb an idea to keep (John Kay)
- Reality bites. Realty to suffer if lending rate doesn’t fall: DLF (The Economic Times)
- Oops! Double Depression (The Daily Reckoning)
- Hmm. US may avoid double-dip recession if Fed intervenes; it’s buying opportunity in India: Mark Mobius (The Economic Times)
What are you reading?
A few interesting items for your reading pleasure:
- Here’s the reality! What Business is Wall Street In? (Blog Maverick)
- Wow! How to ‘fix’ a market (NY Post)
- Oops! India says govt can’t tackle inflation (The Financial Express)
- Nice read. Not Like 2008 (The Daily Reckoning)
- Wise man speaks. Danger: Children at Play (Jeremy Grantham’s Letter)
- Hmm. India will grow in double digits despite current pains: Rakesh Jhunjhunwala (The Economic Times)
- Good read. The Secrets of Investors Who Keep Their Cool in Chaos (Daily Finance)
What are you reading?
The way we conduct ourselves in real life has a lot to do with what we’ve learnt from our parents, and especially from our grandparents.
In fact, the best memories I have of my childhood are of the nights spent with my grandmother who told me stories of the kings and witches, of what made people good and what made them bad, of the importance of forming good habits and the harmful effects of walking the wrong path.
You must have had the same experience.
Anyways, why I’m telling you all this is to show how our influencers change when we are dealing with our real lives, and when we are dealing with our stock market investments.
See this…
A few interesting items for your reading pleasure:
- Drugging the drugged! Fed: Low rates for two more years (CNN Money)
- Wow! Investors flee to gold (CNN Money)
- Hmm. Now What? (The Daily Reckoning)
- Yeah! Jim Rogers: Bernanke and Geithner are sending us to “fiscal Armageddon” (Newsmax)
- Nice. Indian stocks fare better than most in global rout (Mint)
- Oops! A world out of options (Mint)
- Hmm. Panic measures will ruin the Bric recovery (Financial Times)
- Really? India feels it deserves a better credit rating (The Financial Express)
What are you reading?
The culprits – banks, financial institutions, governments, and policymakers. In general, these ‘intelligent’ people lacked the humility to realize the danger of what they were doing.
The victims – Small investors, retirees, widows, you.
The lessons learnt – None! As they say, ‘History doesn’t repeat itself, but it does rhyme’.
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A few interesting items for your reading pleasure:
- Oops! Second Recession in U.S. Could Be Worse Than First (The New York Timess)
- Hmm. The Root of All Sovereign-Debt Crises (Project Syndicate)
- Aha! India’s optimism mislaid on back of global news: S Narayan (Moneycontrol)
- Okay! U.S. Should Downgrade S&P (EconMatters)
- Nice read. It’s Not Armageddon? (The Daily Reckoning)
- Politics! Sebi boss denies FinMIn’s interference in its working (The Economic Times)
- Nice read. A Wave of Worry Threatens to Build on Itself (The New York Times)
- Good perspectives. Why This Crisis Differs From the 2008 Version (The Wall Street Journal)
- Hmm. Jim Chanos on S&P Downgrade of US Debt (Value Walk)
What are you reading?
“The whole world is mad. Stocks will be dropping 30 percent, then rallying 20 percent, and dropping another 30 percent – that’s going to be the pattern. And whoever can’t live with that shouldn’t be buying equities at all.”
These are the words of noted investment guru Marc Faber, the author of The Gloom Boom & Doom Report.
Seeing the way stock markets are reacting these days, it does seem that the world has indeed gone mad.
But as Faber says, if you can’t live with the current uncertainty and volatility in the stock markets, you must not be buying stocks at all.
[Read more…] about How to Keep Your Head in a World Gone Mad
A few interesting items for your reading pleasure:
- Doom! 2011 could be worse for India as US recession looms large (The Economic Times)
- Hmm. Rating downgrade: Did S&P get it right? (CNN Money)
- Daring! Buffett Bet $3.6 Billion on Stocks in Quarter Before Rout, Most Since 2008 (Bloomberg)
- Nice read. Ending the Moral Rot on Wall Street, Part 1 (Bloomberg)
- Funny! AAA to AA+: Here come the battery jokes! (Bloomberg)
- You know it! Do Indian banks exist for their customers? (Mint)
- Not news. US no longer stable, reliable country: Paul Krugman (The Economic Times)
What are you reading?