Dear Investor, Today, let me talk about the most important habit that everyone should build as early as possible in life. It is the habit of SAVING…!! We have all heard the phrase ‘A penny saved is a penny earned’ but do not come to realize the value that this simple practice can add to our lives. In an attempt to explain to you the urgency to develop the habit of saving and investing immediately let me cover two concepts – Compound Interest …
Dear Investor, There are two strategies to play tennis. One strategy is that you play offensively and go for a winning shot often. The other strategy is to play defensively and only aim to return the ball while hoping that the other person will himself/herself hit the ball out. Now if you are an expert and have years of practice then the first strategy might work for you, but it always comes with the risk of hitting the ball out…
Dear Investor,Let me share with you an interesting snippet from the book ‘One up on Wall Street’ by the legendary investor Peter Lynch.He says that during his time in the market he noticed that fund managers usually refrained from investing in unknown stocks. The key reason he identified for this was that when a fund manager wanted to invest in a computer business and he/she chose a name unheard of and the stock did not work well, then the entire…
Dear Investor, If you are a frequent reader, you would know that we have a checklist that we use to screen the companies that we invest in. Well, I was recently updating that checklist and suddenly had a realization. Just like we assign key attributes that a company must have in order to be considered a worthwhile investment, we could also build a checklist that could guide our investment decisions and help us become a successful investor. After working on…