The first working week of Safal Niveshak comes to an end. Thank you all for your support. Hope you liked what you saw here during the week.
If yes, I’ll ensure that you continue to like what I write here in the future. And if not, I promise to make it a better experience for you going forward.
Anyways, here’s a wrap up of what happened this week on Safal Niveshak.
Are You a Stock or a Bond?
No, there isn’t a mistake in the above headline. I am not asking whether you own stocks or bonds. What I am asking here is – Are ‘YOU’ a stock or a bond? This is the very first question you must answer before you get down to investing in the stock markets. In simple terms, what this stock/bond question answers is how you look to the idea of integrating your ‘human capital’ with your ‘financial capital’. Confused? Read this intriguing post to find out why you must answer this question even before you invest a single rupee in the stock market.
Why Most Investors Don’t Succeed in the Stock Market
One of the most important traits of successful investors is that they recognize the frequency with which they can get ‘clean bowled’ in the stock market. Thus they have a plan in place to deal with such situations. This is the first lesson most new investors fail to digest, and thus neglect. And that is the reason why most investors don’t succeed in stock market investing. Read this post to know how you can avoid falling in the same trap and instead emerge a successful investor in the long term.
Are You An Overconfident Investor?
It can easily be claimed that no problem in human judgement and decision-making is more prevalent and more potentially dangerous than overconfidence. We are generally overconfident in our abilities. In addition, we tend to be overconfident in our predictions. This problem of overconfidence is widely prevalent in the stock market, as you will ‘see’ in this post.
What Value Investing Is, and Isn’t
Ask anyone who has a faintest idea about value investing, and the general view is that it is same as bottom fishing, or buying cheap stocks – those that are trading at low price to earnings (P/E) or low price to book value (P/BV). But this is far from truth. Value investing is much more than buying cheap stocks. Read this post to find out what value investing really is, and what it isn’t.
Investing Isn’t Risky. Not Investing Is.
“I don’t invest in stocks. I find investing too risky!” This is a common statement I have heard from many of my college friends who are yet to start investing their savings. They feel they are better off without investing in stock market, and staying with the safety of bonds, and (mis-sold) insurance cum investment products like ULIPs. It really amazes me when such educated people think that investing in stock market is risky. As we discuss in this post, investing isn’t risky. In fact, not investing is the biggest risk of all.
Here are some more interesting posts published this week:
- Would You Prefer to Learn Investing Like This?
- God Save The World…And The Investors
- Conversation with Charlie Munger
Have a nice and safe weekend!
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