How to evaluate an investor

Supreme Industries, Cera Sanitaryware, Page Industries, HEG India, Thirumalai Chemicals, APL Apollo Tubes… We see/hear about them all the time. On Twitter, in blog posts and in conversations. Investors or Investment Managers talk of a stock they identified, a few months or years ago that has since several ‘X’d its initial price. When they explain their rationale for why they felt it was massively undervalued, it seems obvious, in hindsight. Let’s temporarily suspend cynicism and appreciate the investors’ skill in identifying multibagger stocks. Now how do you decide whether you should give them your money to manage or take their advice

Read more

Successful investing needs a process focus

First a quick thought experiment: Let’s assume that this site offered a stock-trading recommendation email service titled “Bonanza System (BS)” or a similar catchy name. To counter your healthy skepticism, I offer free access for 6 weeks, with weekly email recommendations on stocks to buy and sell. Without committing any money, you monitor how the recommendations pan out… It’s now six weeks later and lo and behold, all the recommendations from the “Bonanza System” have been spot on! You calculate you would’ve made a gain of 46% in just 6 weeks! Just then a new mail notification lights up and you click to see

Read more

How to buy your first stock

Let’s say you recognize the corrosive nature of inflation, doff your hat to the marvel that is compounding and realize why equities are critical to wealth-building. Good going already. You’d now like to build your very own stock portfolio that you hope will grow your wealth manifold over the years. Fantastic! So, how do you find your first stock? Where to look One way is to flip through the pink papers or to CNBC to see what stocks the talking heads are eagerly touting as the next big thing. It is also probably the worst way. Reading the Financial Times to prepare for markets

Read more