Browse Tag by stock market
mumbai

An interesting perspective…

 

By 1999, 49% of Americans Owned Equities, this Percentage was just 3% in 1980 .These 20 years was also the Time when Warren buffett, Paul Tudor Jones, George Soros were Created.

🇮🇳 In 2017 only 3% Indian owns Equities..

📈

In 1979, the BSE Index was 100.*

Today it is over 33,000.

That is a return of over 17% per annum.

If we were to add back dividends received and assume that they were to be reinvested in the BSE-30 Index, then the return is nearly 20% per annum.

Over the past 37 years, the Indian economy has grown by a real rate of GDP of 6.3% on average.

Inflation, as measured by the CPI, has been in the 8% range.

Add the two together and you get 6.3% + 8% = 14.3%

Let’s round that down to 14%.

This is the approximate rate of growth of activity in the overall economy, taking into account the level of prices of various goods and services at that point in time. This is also called the nominal rate of growth in GDP.

So, the economy grew by 14% per annum for the past 37 years and the BSE-30 Index grew by 20% per annum.

Now if, over the next 33 years, the Indian economy is to grow by, say, 6% per annum and inflation is to be, say, 5% per annum then the nominal rate of GDP for the next 33 years will be = 6% + 5% = 11%.

If a 14% nominal rate of growth in the economy between 1980 and now resulted in a 20% average per annum growth in the Index over the past 37 years, then what should a 11% per annum growth in nominal GDP result in over the next 33 years – till the year 2050?

Sensex 4,076,470 doesn’t seem extraordinary now, does it?

“If the bull market journey is from Mumbai to Delhi, we have probably reached only Borivali”
– Rakesh Jhunjhunwala

mumbai

Investing rules – Maximise money per hour of research

Good Thoughts…

Investing rules – Maximise money per hour of research

-Read books from successful investors.

Stop watching TV News Channels.

Nobody knows the future, so stop asking.

Money is only one of the types of Wealth.

Crazy people of like nature enforce yet conceal each others’ craziness. Find your craziness and tone it to saner proportions.

Mean reversion is an enduring truth of market.

Average common man will buy more in peaks and less in trough.

Excesses in under and over valuation is an enduring theme.

Find High Growth Companies in Low Growth Industries.

Stop Finding companies in High Growth Industries.

Find out the type of investor you are, someone who buys on borrowed tips of one who researches on their own.

Find market leaders in small niches, not #3 or #4 players selling cheap.

Thinking in 3-5 year time frames and not 3-4 months / quarters.
Understand the business, competitive forces and ability to predict future of the business.

Stop thinking solely in PE terms.

Stop playing greater fool game.

Bet on four stocks at a minimum, don’t over concentrate, don’t over diversify.

Think independently. You will outperform the majority.

When there is no company worth investing in the country, go all cash, to go out of the country.

Get rich slow-but-sure, don’t buy lotto, don’t play in casino, don’t gamble, don’t leverage. Learn about online casino bonuses better.

Maximise money per hour of research, no point buying into a position requiring active monitoring. The person who makes 100 million from stock market by investing 1 hour per day wins over the person who makes 100 million by investing 6 hours a day. Time is finite and limited. Learning and knowledge is infinite.

Make money and stock market both your slave, make money and forget about them.

Never retire, work incessantly.

Money is means and not an end. Money is a slave to free you from your daily routine.

Show you have the creative potential and do something that nobody has ever done.

Have more creative ambitions in life than earning billions, you are more than your body (thankfully) that needs to be fed on money supplied goods and services alone and very soon you will enter a dimension where money will not work. How soon ? Likely before 2500 weekends.

Gradually drift into a field which you are passionate about, otherwise you are a big disservice to yourself and the society in a profession that is not your passion.

Buy damaged stocks, not beaten down companies.

Admit mistakes.

Learn from own and others’ mistakes.

Explain your picks to yourself with four convincing reasons.

 

Via @whatsapp

mumbai

30 Unfortunate Truths About Investing

30 Unfortunate Truths About Investing
1. The gulf between a great company and a great investment can be extraordinary.

2. Markets go through at least one big pullback every year, and one massive pullback every decade. Get used to it. It’s just what they do.

3. There is virtually no accountability in the financial pundit arena. People who have been wrong about everything for years still draw crowds.

4. There are tens of thousands of professional money managers. Statistically, a handful of them have been successful by pure chance.

5. On that note, some investors who we call “legendary” have barely, if at all, beaten an index fund over their careers. On Wall Street, big wealth isn’t indicative of big returns.

6. During Recessions, Elections, and Federal Reserve Policy Meetings, people become unshakably certain about things they know nothing about.

7. The more comfortable an investment feels, the more likely you are to be slaughtered.

8. Time-saving tip: Instead of trading penny stocks, just light your money on fire. Same for leveraged ETFs.

9. Not a single person in the world knows what the market will do in the short run. End of the story.

10. The analyst who talks about his mistakes is the guy you want to listen to. Avoid the guy who doesn’t — his are much bigger.

11. You don’t understand a big bank’s balance sheet. The people running the place and their accountants don’t, either.

12. There will be 7 to 10 recessions over the next 50 years. Don’t act surprised when they come.

13. Thirty years ago, there was one hour of market TV per day. Today there’s upwards of 18 hours. What changed isn’t the volume of news, but the volume of nonsense.

14. Warren Buffett’s best returns were achieved when markets were much less competitive. It’s doubtful anyone will ever match his 50-year record.

15. Most of what is taught about investing in university is theoretical nonsense. There are very few rich professors.

16. The more someone is on TV, the less likely his or her predictions are to come true. (U.C. Berkeley psychologist Phil Tetlock has data on this).

17. Trust no one who is on CNBC more than twice a week.

18. The majority of market news is not only useless, but also harmful to your financial health.

19. Professional investors have better information and faster computers than you do. You will never beat them short-term trading. Don’t even try.

20. The decline of trading costs is one of the worst things to happen to investors, as it made frequent trading possible. High transaction costs used to cause people to think hard before they acted.

21. Most IPOs will burn you. People with more information than you, want to sell. Think about that.

22. The phrase “double-dip recession” was mentioned 10.8 million times in 2010 and 2011, according to Google. It never came. There were virtually no mentions of “financial collapse” in 2006 and 2007. It did come.

23. The best investors in the world have more of an edge in psychology than in finance.

24. What markets do day to day is overwhelmingly driven by random chance. Ascribing explanations to short-term moves is like trying to explain lottery numbers.

25. If you have credit card debt and are thinking about investing in anything, stop. You will never beat 30% annual interest.

26. A large portion of share buybacks are just offsetting shares issued to management as compensation. Managers still tout the buybacks as “returning money to shareholders.”

27. Twelve years ago General Motors was on top of the world and Apple was laughed at. A similar shift will occur over the next decade, but no one knows to what companies.

28. Most would be better off if they stopped obsessing about Congress, the Federal Reserve, and the president and focused on their own financial mismanagement.

29. For many, a house is a large liability masquerading as a safe asset.

30. The most boring companies — toothpaste, food, bolts — can make some of the best long-term investments. The most innovative, some of the worst.

Shared by Ankur Rege

Uncategorized

Playing the Game….

1990
Got addicted to  Stock market game called StokMark on the BBC Micro computer.

1994 Harshad Mehta Era
Invested and followed the markets like hell, was in 10th Std invested uncles 40k, ran a small fund in school, lost most of it primarily in ITC Agro, spent 2 years kinda repaying it.

1999-2000  Ketan Parekh Boom
Din’t participate in the Rally, watched the game from the boundary & besides had no money to invest.

2003
Rally with no name, Lets call it the Rakesh Jhunjhunwala Era or India Shining Rally.
Started investing when the Index was at 3000, was part of the Dot Com Burst invested mostly in Penny stocks & Financial Technology (@20) , Index fell to 2500…Lost a bit initially

2004
Did some Program Trading with a Friend at a Stock Broker, did volumes of 4 cr.. due to some wrong calculations and bugs lost around 50k

2005
Cleared entire portfolio at 6000,  7000, 9000..before every minor correction, Got lucky with Financial Technology, Sold it &  invested in Real Estate just before the Property Rally.

2006
Moved all investment to Commodities, Lost 1.5 lakhs moved back to Stocks when index was at 9000.

2007
Removed a big chunk in 2007 for wedding and repaying of Credit cards.

2008
Didn’t sell portfolio when the index hit 21000, moved to a new job, sold some stock to pay credit card debts, continue to hold most of it ( Compulink, Forbes & Mcdowells), Portfolio down by half.

I think I can wait for a year or two 🙂

I still think Equities are still the best & fastest legally one can make large sums money and aim at fulfilling their dreams quickly , this is primarily what drives millions in India to invest inspite of the dangers and risks both known and unknown…

Today people might say WTF, but when a few people start investing and a few matkas happen , the Mania will start all over again with a new idea, new names , new strategy, new players etc etc ..

Like the Old Lady of BoriBunder says “What a Game, Majaa aaya na”

Uncategorized

Stock Market Jokes

In these trying times of Doom & Gloom some Funny SMS’s doing the rounds .

If Mahatma Gandhi had ever given thought 2 the Stock Market…
He would have added to his famous three… a fourth monkey with hands covering his Ass…!

Yrs ago people who sacrified their sleep, family, food and happiness were called SAINTS…. Today they r called shareholders

Good time to invest in stocks of Rupa Frontline, VIP underwear, Jockey briefs etc. ‘Sab ki chaddi utar gayi hai. So, everyone will buy a new one

Jab apko potty na aye,
aap baithe baithe thak jaye, presure b nahi aye,
yaad karna stock market,shayad apki gaand fat jaye aur kaam ho jae.

 The stock markets are now like an old man’s dick – just refusing to rise!
And the irony is that everybody is still getting fucked! ;-).

Uncategorized

Where are we headed ??

Is this the bottom of the fall or is this just the begining like 2000.

When it crashed in 2000 it bottomed out in 2003,  Oil is at 140 $ is 200$ the next target.

Will the Congress Government Fall, Will will have mid-term election, Are we gonna sign the Nuke Deal with USA.

Will the Republicans win the elections in US.

When will the war in Iraq get over.

Has the sub-prime chaos been settled?

Are were gonna see more Bear Stearns happenings.

The mood is down, everything looks gloomy, No one talks about the market anymore…

…. But then there is a saying, “Be greedy when others are fearful and Fearful when others are greedy”… Just wondering if today is the time.