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Fixed Deposits And Equities In The Barbell Strategy

May 26, 2018 Leave a comment

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If the all the risk-reward stories of the portfolio theory mutualfundwale don’t grab you, here’s an alternative strategy for the independent investor : The Barbell Strategy.

Here’s what it involves :

Building a portfolio that recalls a barbell. That is : On one side, there’s a basket of extremely safe investments. On the other side, there’s a basket of extremely speculative plays. The weight is distributed between two extremes, with almost nothing in the middle. Read more of this post

Filed under Alternative Assets, Entrepreneurship, Paper Assets, Theory, Tool Kit Tagged with alternative strategy, asymmetric risk return scenario, asymmetric risk reward ratio, Barbell Strategy, conservative, derivatives trader and arbitrageur, Fixed Deposits, hyper aggressive, hyper conservative, illiquid stocks, independent invester, mildly aggressive, minimize downside risk, multi-bagger, Nassim Nicholas Taleb, networking, postaday, risk measures, risk-reward, speculation, strategy, ultra safe, unlimited upside, unlisted shares

Investing In Unlisted Shares

September 17, 2014 15 Comments

wealthymatters If you’d like to be part of the action and excitement of various start-ups, you can consider investing in unlisted shares. But there are a few challenges to overcome and difficulties to bear up to.

Since these companies are unlisted, very little financial information is available. Also, because there’s no formal platform to trade these shares, the demand-supply situation varies and the price at which deals are struck are a function of the quantity, demand-supply situation and the sentiment prevailing in the secondary markets.

Unlike listed stocks, the unlisted space has few brokers and trades are made through known sources.Often, a broker accumulates small lots of shares from employees who have earned them as ESOPs, or from investors who have bought earlier and are looking for an exit. Once the broker has a sizeable chunk of shares, typically worth more than Rs 1 crore, it’s offered to HNIs.

Unlike listed shares, where a holder can exit through the stock exchange, liquidity is poor in unlisted companies. You would have to look for an IPO or another buyer. Read more of this post