Magazine subscriptions and the fault in our reasoning

A rupee today is worth more than a rupee tomorrow (or at any point in the future) This is the first, most fundamental lesson you learn as a student of finance. Called Time Value of Money, the idea that any money you have today can earn interest or returns in other forms making it worth more than the same amount of money at a later point in time, is a core principle of finance. Another way to look at the above statement is that inflation is constantly reducing what a fixed amount of money can buy. Hence you hear statements like “When I

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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

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