November 6, 2013 Leave a comment
Finally, we invest out of ignorance. We cannot be perfect.
For Whom Wealth Matters
November 6, 2013 2 Comments
”The market is like women, always commanding, always mysterious, always volatile, always exciting, and it is not a joke. In my 25-30 years of experience in the market, just as you cannot have a good relationship with a woman by bullying her, you cannot have a good relationship with the market by trying to bully it or say that you are the king. The king is the market.”
April 26, 2013 2 Comments
Both investments have an 8 percent average annual return. But Investment #1 has a wide range of returns, while Investment #2 has a stream of returns that more tightly hug the average annual return.
If each of the points on the charts represents a monthly return and both investments achieve the same end result, which investment should you choose?
The answer: Investment #2 — the one with the tighter distribution of returns since it gives you a higher probability of achieving a higher return. Read more of this post
December 22, 2012 2 Comments
Here is the transcript of Rakeshji’s interview on ET NOW of the day before yesterday for those of us who didn’t manage to catch it alive:
ET Now: What is your take on the current situation of the market?
Rakesh Jhunjhunwala: I am not surprised as December 20 of 2011 is still the 52-week low. There is hope in the market that the government will finally act.Interest rates worldwide are at extremely low levels. So money being cheap, there is some kind of confidence in Europe that at least no country is going to leave the Eurozone for the next six months.
We do not know beyond that. China is expected to grow better and the American economy is also showing some signs of recovery and here the markets are anticipating that now the interest rate cycle has turned. We are going to have lots of interest rate cuts next year. Despite all the pessimism, the market is performing extremely well with very good breadth and all technical indicators are extremely positive. It has always surprised me as it has risen in the last two, three months and it just refuses to correct. Read more of this post
December 22, 2012 4 Comments
Here is what Rakesh Jhynjhunwala has to say on what money means to him:
If you ask me what money means, I’d say it’s used as a means of exchange, among other things.But J Paul Getty, one of the world’s richest men, said: If you can count it, you don’t have enough of it.
Money is the harsh reality of life. Some love for it, some die for it, some use it well, some waste it, most fight for it, but most others desire it. Read more of this post
January 4, 2012 Leave a comment
Here is an excerpt from CNBCs the Wizards of Dalal Street:It’s pretty interesting hearing Rakesh narrate the story of his early years in the stock market and his progress since then.With the market in the doldrums maybe it’s now time for us too to seize the moment and do our personal versions of a Jhunjhunwala.So watch,learn and be encouraged:
August 21, 2011 3 Comments
For a while now I have been expecting the stock markets to tank and keeping aside a lot of cash to go bottom fishing. I thought that the S&P downgrade of the US would be the trigger event.However as things panned out,at the time the markets didn’t slide as much as I expected.But in the time since then my expectations have come to pass.Meanwhile I’ve been assailed by doubts so often during this time that I’ve considered just rushing in and buying stocks for fear that I might not get a lower price.The video below also added to my doubts at the time but it has also given me a way to deal with doubts for all time.I just have to remember“Markets are going to do what they are going to do….In uncertain conditions you can’t really anticipate markets and valuations have no base………so let’s not anticipate markets,let’s watch them.” Read more of this post