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Are you buying stocks after a positive event occurs?
![]() Also larger the size of the fund, it becomes essential to buy before the trigger.😇 |
Are you minimising drawdowns on your investments?
![]() The role of a money manager isn’t maximising returns but optimising them with respect to risks. Drawdowns should be minimised even at the cost of sacrificing some returns. Risk-taking is an inevitable ingredient in investing, and in life, but never take a risk you do not have to take. 😇 |
Value investors think differently than the rest of the market.
![]() To be successful in your business, you need to offer a product that differs from the competition in a way that clients recognise as added value. Similarly in investing if you want to outperform the market as an investor, the first thing you need to do is something different from all other investors. Every great investment requires a skill which is ability to assess risks and opportunities differently than others.😇 |
Repetition Compulsion: Human behaviour repeats over and over again.
![]() This quote by Mark Twain seeks to harness life’s most profound truth, that time only moves in one direction and that is forward but events that are similar do happen again. In the context of the financial markets, though the amplitude, frequency, speed of the fluctuations, duration of the cycle varies from one another. What rhymes(repeats) in a bull market is: High level of optimism & Low level of risk aversion.😇 |
What is value investing?
![]() A low purchase price not only creates the potential for gain, it also limits the downside risk. The bigger the discount from fair value, the greater the "margin of safety" an investment provides. 😇 |
Cash itself is an asset class.
![]() An Investor's Asset Allocation decisions are not simply between earning less in cash and earning more in bonds or stocks. The key question here becomes: "How much can the cash earn if I have it when I need it to buy other assets that are cheap, versus the upfront cost of holding it? 😇 |
What kind of investor are you?
![]() This post presents the most important message from the book “THE INTELLIGENT INVESTOR” by Benjamin Graham The message is that your investment strategy entirely depends on what kind of investor you are : Defensive (Passive) or Aggresive (Enterprising). Aggresive means continuously researching, selecting and monitoring the “best” available stocks. This takes time and energy. Defensive means creating a permanent portfolio that runs on autopilot and requires no further time or effort. TrendlineZ makes it everything DEFENSIVE for you. 😇 |
Investing is a long term proposition.
![]() No. If we have the attitude of thinking how much we can accomplish in the long term bit by bit, we can accomplish a lot more with ease. Consistency is all that matters !! Similarly in investing, executing a well researched plan consistently over a period of time will generate superior returns in long term. 😇 |
Business Fragility
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Volatility is not to be feared.
![]() Behavioural studies shows that stocks often sell off more than is warranted due to the over-reaction of investors to a particular event. Hence, it is not surprising that the same stocks can rebound once fundamental factors are considered more carefully. A common characteristic of many of the stocks that we buy is that everyone hates them. Part of the future is unknown but there are these instances of high volatility where you can get favourable risk/rewards. Thus volatility is not to be feared, but to be embraced.😇 |
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