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Dear Readers, Any sustainable long term business is only built when your clients make money, while Brokerages have been trying to invert the universal truth. However as they say, you can’t have the best of both worlds. Brokerage businesses are seeing a rapid slowdown with some of them being clammed up for sale while most of them have cut down headcounts to save on cost. First let’s go through what Mr. Rashesh Shah of Edelweiss, the leading brokerage house of…

Dear Readers, Different analysts use different models for predicting the tops and bottoms of markets, ranging from simple to very complex ones. I too use some data to determine the mood of the markets, however in my case it’s pretty simple and most of you reading this too can use the same. I basically look at the participation of Retail investors in the stock market. Somehow, the same works every time for me and I further look at the valuations…

Dear Readers, Here is what Warren Buffett had to ask investors in his 1997 letters to shareholders – [Please read carefully in order to understand the most basic principle of investing in stocks] “If you plan to eat hamburgers throughout your life and are not a cattle producer, should you wish for higher or lower prices for beef? Likewise, if you are going to buy a car from time to time but are not an auto manufacturer, should you prefer…

Dear Readers, Common sense means paying attention to the obvious. This is not as easy as it sounds. We all have vivid imaginations, and we tend to get lost in our fantasies. When fantasy replaces common sense, life becomes farcical and even tragic. Life is a series of ordinary events that follow the laws of logic and probability. These ordinary events are indifferent to our fantasies and require the careful, accurate navigation of common sense. It’s easy to get lost…