This person needs no introduction to the world of finance. Though I haven’t read much about him, but few articles and the interviews had made me a deep follower of his words, thoughts and ideas. Sir John Templeton, a contrarian investor was the first to show Americans about investing cross borders.
He says that he made huge amount of money by buying the stocks at the ‘maximum pessimistic market’. He even bought companies which are in the verge of bankruptcy and trading below a dollar. He always preached and practised value investing.
Needless to say he is a legend both in personal and professional life. He donated most of his wealth to charities and other activities. He once ranked #11 among the top 50 philanthropist in the world.
One among the herd’s of million, I am too remembering the genius at this time. I wish I would have born earlier to follow his teachings. Nevertheless, thanks to the world of web and Google where I able to get lots of articles about this great man’s teachings. I am thankful to Mr.Charlie rose who interviewed this great man in his show, where I learnt a lot from that few golden minutes of their conversation and his style of investments.
http://www.sirjohntempleton.org/
http://money.cnn.com/2008/11/27/news/newsmakers/john_templeton.fortune/?postversion=2008112810
http://www.charlierose.com/view/interview/5555
http://www.financialpost.com/analysis/columnists/story.html?id=d6f51d59-070b-4d66-8df2-1f4d472b19c6
Tuesday, December 2, 2008
REMEMBERING SIR JOHN M TEMPLETON
"And in the end, it's not the years in your life that count. It's the life in your years -- Abraham Lincoln"
Tuesday, November 25, 2008
THE CURRENT CRISIS & A POSSIBLE REMEDY BY Mr.GEORGE SOROS
I always admired Mr.Geroge soros for his shrewd trading skills specially shorting the market predicting its high. One recent example was OIL. When the whole street is publishing articles, saying crude might touch $175-$200, Including the CEO of OPEC, Soros was against them and finally he won. This article explains about the recent financial crisis and the way to control it. The views are his own.
"The salient feature of the current financial crisis is that it was not caused by some external shock like OPEC raising the price of oil or a particular country or financial institution defaulting. The crisis was generated by the financial system itself. This fact—that the defect was inherent in the system —contradicts the prevailing theory, which holds that financial markets tend toward equilibrium and that deviations from the equilibrium either occur in a random manner or are caused by some sudden external event to which markets have difficulty adjusting. The severity and amplitude of the crisis provides convincing evidence that there is something fundamentally wrong with this prevailing theory and with the approach to market regulation that has gone with it. To understand what has happened, and what should be done to avoid such a catastrophic crisis in the future, will require a new way of thinking about how markets work."
http://www.nybooks.com/articles/22113
(The author, Mr.George soros is a legendary trader & investor who runs Quantum fund.He is also the author of " The New Paradigm for Financial Markets" " The age of Fallibility" and the Famous " The Alchemy of Finance".
"The salient feature of the current financial crisis is that it was not caused by some external shock like OPEC raising the price of oil or a particular country or financial institution defaulting. The crisis was generated by the financial system itself. This fact—that the defect was inherent in the system —contradicts the prevailing theory, which holds that financial markets tend toward equilibrium and that deviations from the equilibrium either occur in a random manner or are caused by some sudden external event to which markets have difficulty adjusting. The severity and amplitude of the crisis provides convincing evidence that there is something fundamentally wrong with this prevailing theory and with the approach to market regulation that has gone with it. To understand what has happened, and what should be done to avoid such a catastrophic crisis in the future, will require a new way of thinking about how markets work."
http://www.nybooks.com/articles/22113
(The author, Mr.George soros is a legendary trader & investor who runs Quantum fund.He is also the author of " The New Paradigm for Financial Markets" " The age of Fallibility" and the Famous " The Alchemy of Finance".
Friday, November 21, 2008
If U Never failed.....You never lived..
Life = Risk...
http://in.youtube.com/watch?v=Y6hz_s2XIAU really amazing video....
http://in.youtube.com/watch?v=Y6hz_s2XIAU really amazing video....
Saturday, May 3, 2008
FEW TIPS FROM THE LEGEND...
Benjamin Graham, the stock market investor and economist, was the only investing legend who ignored the subjective aspects of equity analysis.
Graham was never interested in meeting managements and knowing what they were capable of doing or not doing. All he saw and studied were hard core numbers -the Balance Sheet. He wanted to buy cheap and under valued assets. Graham had also always stressed the diversification mantra. He professed that investors should buy companies when the current situation is unfavourable, the near-term prospects poor and the low price fully reflects the current pessimism.
Graham advised investors to keep their equity exposure within 75 per cent of their net assets. For the more adventurous investors, a 100 per cent exposure to equity could be considered in case the investor met the following guidelines:
Keep enough cash to take care of 12 months of your family expenses.
Do not panic and sell stocks but actually buy more stocks of solid stable companies as prices continued to slide during the bear markets.
You understand and are able to differentiate between hope and hype.
Below are his few quotable quotes:
“While enthusiasm may be necessary for great accomplishments elsewhere, on Wall Street it almost invariably leads to disaster.”
“The fact that other people agree or disagree with you makes you neither right nor wrong. You will be right if your facts and your reasoning are correct.”
“Confronted with the challenge to distil the secret of sound investment into three words, we venture the motto, Margin of Safety.”
“Many sceptics, it is true, are inclined to dismiss the whole procedure (chart reading) as akin to astrology or necromancy; but the sheer weight of its importance in Wall Street requires that its pretensions be examined with some degree of care.”
“Individuals who cannot master their emotions are ill-suited to profit from the investment process.”
“Most of the time common stocks are subject to irrational and excessive price fluctuations in both directions as the consequence of the ingrained tendency of most people to speculate or gamble... to give way to hope, fear and greed.”
“The chief losses to investors come from the purchase of low-quality securities at times of favourable business conditions.”
“The individual investor should act consistently as an investor and not as a speculator. This means…that he should be able to justify every purchase he makes and each price he pays by impersonal, objective reasoning that satisfies him that he is getting more than his money’s worth for his purchase.”
Graham was never interested in meeting managements and knowing what they were capable of doing or not doing. All he saw and studied were hard core numbers -the Balance Sheet. He wanted to buy cheap and under valued assets. Graham had also always stressed the diversification mantra. He professed that investors should buy companies when the current situation is unfavourable, the near-term prospects poor and the low price fully reflects the current pessimism.
Graham advised investors to keep their equity exposure within 75 per cent of their net assets. For the more adventurous investors, a 100 per cent exposure to equity could be considered in case the investor met the following guidelines:
Keep enough cash to take care of 12 months of your family expenses.
Do not panic and sell stocks but actually buy more stocks of solid stable companies as prices continued to slide during the bear markets.
You understand and are able to differentiate between hope and hype.
Below are his few quotable quotes:
“While enthusiasm may be necessary for great accomplishments elsewhere, on Wall Street it almost invariably leads to disaster.”
“The fact that other people agree or disagree with you makes you neither right nor wrong. You will be right if your facts and your reasoning are correct.”
“Confronted with the challenge to distil the secret of sound investment into three words, we venture the motto, Margin of Safety.”
“Many sceptics, it is true, are inclined to dismiss the whole procedure (chart reading) as akin to astrology or necromancy; but the sheer weight of its importance in Wall Street requires that its pretensions be examined with some degree of care.”
“Individuals who cannot master their emotions are ill-suited to profit from the investment process.”
“Most of the time common stocks are subject to irrational and excessive price fluctuations in both directions as the consequence of the ingrained tendency of most people to speculate or gamble... to give way to hope, fear and greed.”
“The chief losses to investors come from the purchase of low-quality securities at times of favourable business conditions.”
“The individual investor should act consistently as an investor and not as a speculator. This means…that he should be able to justify every purchase he makes and each price he pays by impersonal, objective reasoning that satisfies him that he is getting more than his money’s worth for his purchase.”
Wednesday, April 30, 2008
Should we invest in what we know……?
Is it worth adding a well known stock in our portfolio, so that we can sail safely in the ocean of stock market? As per Benjamin graham sometimes, the stocks which are more familiar to us can turn out to be a dangerous investment.
“Psychologists led by Baruch Fischhoff of Carnegie Mellon University have documented a disturbing fact: becoming more familiar with a subject does not significantly reduce people’s tendency to exaggerate how much they actually know about it. That’s why “investing in what you know” can be so dangerous; the more you know going in, the less likely you are to probe a stock for weakness. This pernicious form of overconfidence is called ‘home bias’, or the habit of sticking to what is already familiar:
• Individual investors own three times more shares in their local phone company than in all other phone companies combined.
• The typical mutual fund owns stocks whose headquarters are close to the fund’s main office than the average U.S. companies.
• 401(k) investors keep between 25% and 30% of their retirement assets in the stock of their own company.
In short, familiarity breeds complacency. On the TV news, isn’t it always the neighbour or the best friend or the parent of the criminal who says in a shocked voice, “he was such a nice guy”? That’s because whenever we are too close to someone or something, we take our beliefs for granted, instead of questioning them as we do when we confront something more remote. The more familiar a stock is, the more likely it is to turn a defensive investor into a lazy one who thinks there’s no need to do any homework. Don’t let that happen to you.—“The Intelligent Investor”
“Psychologists led by Baruch Fischhoff of Carnegie Mellon University have documented a disturbing fact: becoming more familiar with a subject does not significantly reduce people’s tendency to exaggerate how much they actually know about it. That’s why “investing in what you know” can be so dangerous; the more you know going in, the less likely you are to probe a stock for weakness. This pernicious form of overconfidence is called ‘home bias’, or the habit of sticking to what is already familiar:
• Individual investors own three times more shares in their local phone company than in all other phone companies combined.
• The typical mutual fund owns stocks whose headquarters are close to the fund’s main office than the average U.S. companies.
• 401(k) investors keep between 25% and 30% of their retirement assets in the stock of their own company.
In short, familiarity breeds complacency. On the TV news, isn’t it always the neighbour or the best friend or the parent of the criminal who says in a shocked voice, “he was such a nice guy”? That’s because whenever we are too close to someone or something, we take our beliefs for granted, instead of questioning them as we do when we confront something more remote. The more familiar a stock is, the more likely it is to turn a defensive investor into a lazy one who thinks there’s no need to do any homework. Don’t let that happen to you.—“The Intelligent Investor”
Saturday, April 26, 2008
Quotes...... Iam inspired a lot
Some times a minute in our lives can change our destiny, can change our fortune.
Here are few of my favourite quotes which Iam highly inspired. When ever I feel that Iam getting defeated, loosing my vision towards my goal or getting distracted from the external impact, I used to re-energize remembering these quotes. I hope these quotes helps my friends too. Just sharing what I got.
"I haven't failed, I've found 10,000 ways that don't work.
Thomas Edison (1847-1931)"---- My best ever quote.
"Try not to become a man of success but a man of value - Albert Einstein"
Here are few of my favourite quotes which Iam highly inspired. When ever I feel that Iam getting defeated, loosing my vision towards my goal or getting distracted from the external impact, I used to re-energize remembering these quotes. I hope these quotes helps my friends too. Just sharing what I got.
"I haven't failed, I've found 10,000 ways that don't work.
Thomas Edison (1847-1931)"---- My best ever quote.
"Try not to become a man of success but a man of value - Albert Einstein"
"And in the end, it's not the years in your life that count. It's the life in your years -- Abraham Lincoln"
"It is possible to fail in many ways...while to succeed is possible only in one way." -Aristotle "
"The first rule is not to loose money. The second rule is not to forget the first rule"
" You only have to do a very few things right in your life so long as you don't do many things wrong. - Warren.E.Buffet"
"All of human unhappiness comes from one single thing; not knowing how to remain at rest in a single room. - Blaise Pascal "
"A person should not be too honest. Straight trees are cut first and honest people are screwed first.
God is not present in idols. Your feelings are your god. The soul is your temple.
The biggest guru-mantra is: never share your secrets with anybody. It will destroy you.
We should not fret for what is past, nor should we be anxious about the future; men of discernment deal only with the present moment " Chanakya (350 b.c - 275 b.c).
Subscribe to:
Posts (Atom)
