Fixating on Buffett is hurting your returns

It’s that time of the year when the world’s most awaited corporate communication comes out. My guess is if we take all publicly listed companies around the world (except one), and add up the number of times their management letters get read, that number would be dwarfed by that for Berkshire Hathaway and Warren Buffett’s annual letter to shareholders. At $300,000+ per Berkshire Class A share, it’s safe to assume only a fraction of those readers are potential buyers. All around the world, people from fund houses, financial media, popular investment blogs, investment advisories pore through the simply formatted, 20-page

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What is Money?

One of the challenges of trying to read wide and deep I’ve found is ensuring active engagement with the content. Without that, it’s difficult to take away the author’s key message and to assimilate that into my mental models. It is an important enough problem faced by people who like to read that Shane wrote a great post describing how to take notes while reading. I’ve tried various techniques in the past and in this post, I’ll highlight a technique I’m experimenting with, using mind maps to summarise my understanding of the content. The image below is from the beginning

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Should you buy stocks newly added to the NIFTY

From April 2nd, 2018, the NIFTY will look different. Bajaj Finserv, Grasim Industries, and Titan Company will be included and Ambuja Cements, Aurobindo Pharma, and Bosch will be excluded. [link] This is not a rare or ad-hoc phenomenon, but a semi-annual ritual conducted by the organization that owns the NIFTY index, the National Stock Exchange, effective every April and September. Here’s what the index methodology document says about index reconstitution: The index is reconstituted semi-annually considering 6 months data ending January and July respectively. The replacement of stocks in NIFTY 50 (if any) is generally implemented from the first working day after F&O

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Do markets really move together?

Excerpt from my guest post on capitalmind.in exploring whether global markets really move together… It was going so well. Carrying on from a blockbuster 2017, the NIFTY had risen almost 6% in 2018 by Jan 29th. And then the jitters started. By the end of the 1st week of Feb, we were down almost 2% for the year, after a budget that added Long Term Capital Gains taxes for Indian stocks after 13 years. As of this writing, the NIFTY is roughly back to where it started the year, with expectations that more volatility will follow. One way to look at

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Learning to invest vs Investing to learn

Learning to Drive You’re on a fairly empty side-street, your cousin, an experienced driver next to you, in the passenger seat. It is her 8-year-old Fiat Punto, but the make or model doesn’t matter to you, just that it’s a functioning car. You don’t know if you will enjoy driving, but you want to be able to. You don’t know if your cousin is the “best” driver around, but you know she’s been driving for a few years and you trust her. She instructs you step-by-step to first push the brake, turn the key in the ignition, press down on

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How SimpleMoney can help track your portfolio

This is a sponsored guest post by Pranshu Maheshwari, founder and CEO of SimpleMoney Taking stock of our personal finances by building a Personal Financial Balance Sheet is a very important step in boosting our financial health. But it can be immensely challenging for many of us because our money is kept across a range of locations: bank accounts, real estate, the financial markets, gold, under our mattresses. Just within the world of Equities and Mutual Funds, we often deal with multiple fund houses, stockbrokers, registrars and portals, leaving us with a collection of usernames and passwords. The persevering souls amongst

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Learning from the latest market decline

Long periods of boredom punctuated by moments of terror This phrase is attributed to many different people said to be describing many different professions. From driving big-rig trucks, flying aircraft to modern warfare. And of course, it has since been co-opted by the investment profession and by the best investors, as a metaphor for the vagaries of the market. Personally, I think it’s a bit dramatic comparing warfare with the buying and selling of stocks. True to form, financial media in the US announced 5th Feb 2018 was “the worst point decline in history“. Phrased like that you can’t help

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