McKinsey research shows that equity analysts have been overoptimistic for the past quarter century. On average, their earnings-growth estimates—ranging from 10 to 12 percent annually, compared with actual growth of 6 percent—were almost 100 percent too high. Only in years…
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Expert Equity Analysts Rarely Get It Right
Play Soccer & Become A Personal Finance Champion
Spain is Soccer World Cup 2010 Champion. Analysts say that is because of their mental strength, their wily forwards, a strong defence and the hardworking midfield. Imp: Do remember that what the analyst say is on the basis of hindsight…
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Benjamin Graham on Stock Market Predictions
I would like to point out that the last time I made any stock market predictions was in the year 1914, when my firm judged me qualified to write their daily market letter, based on the fact that I had…
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Posted in Investing gyaan
Don’t Trust Me For Financial Advice
It feels good when people ask for advice and thank me for what they have learned from the blog. But I wonder if it’s right. The right advice: A good advice means a total understanding of your situation, your risk…
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Posted in Financial Behaviour, Investing gyaan
Doing Your Homework Before Investing In Stocks
I wrote the following article for FlyLite magazine, which is the in-flight magazine of JetLite. The post takes it’s motivation from Deepak Shenoy’s post on shares, IPOs and stock markets. The proceeds from Flylite would go to a non religous…
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We Have Met The Enemy, And He Is Me!
When it comes to investing in stocks, most of us get excited when the market is going up. And thanks to our Greed, we buy when the market is near the peak. And the moment the markets are down, thanks…
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Front Running, Misleading Investors Is Part Of The Game?
SEBI has found Nilesh Kapadia, AVP-Equities at HDFC Mutual Fund guilty of front-running trades that the fund was going to take and has given directions to HDFC MF on the issue: The investigation revealed that Mr. Nilesh Kapadia, Assistant Vice…
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