What does Long Term Investing Mean?

Ask this question to people across different spectrum and you will get as many answers as there are spectrums.

  • Conservatives will tell you stock market is nothing short of gambling. It demonstrates lack of understanding what stock market really means.
  • Broker will tell you buy today, sell tomorrow. It shows what is the motivation; jacking up transactions and fees. Holding for more than few days is not in his interest.
  • I can go on an on like this …. but you get the point. Right?


We all want to succeed in making some good money, some quick money, and/or some money. It is my belief that most of the individuals will lose money in stock market over their lifetime. Whether we admit it publicly or not, it is a reality. I do not doubt that people sincerely want to succeed at investing, but the only issue is they do not know how. So they try to follow something that appears to be succeeding. A fund manager or business honcho mentions some stocks or strategy that is doing good in the market, and they jump on board. Only to realize later that they are late to the party. With little drop they jump off and then try to latch on something else, or many times they say, “I am out of the market”. It is a fashion to use market lingo’s. Continue reading rest of this article…

Selling an Important Part of Portfolio Management

It has been very close to a year I have been writing on this blog. Almost on all occasions I have discussed about buying and holding my position. I have said multiple times that I tend not to sell my positions. There have been multiple questions about why not book profits? Why not sell profitable positions and invest in other opportunities? Before I discuss on selling any positions, let me clarify, I do not blindly believe that buy and hold is holy grail for long term investing. I have no misconception about “not selling” any positions. In any system (eco-system, car, machines, or even our body), there are multiple elements and each have a role to play. Similarly, in portfolio management process, selling a position is also very important, and hence it cannot be ignored. In my process description, I have captured this part as ‘exit plan’. Continue reading rest of this article…

Putting 2009 YTD returns of 115% in Proper Perspective

1133804_sign_success_and_failureBy now, I am sure most of us would have finished taking stock of Year 2009. I am also sure that many of us would be happy with our portfolio performance with 25%+ returns in single year. Many of us don’t lose an opportunity to say I made such-n-such in 2009. On a personal note, I also discussed the results of my own portfolio and showed 115% increase in market value. It would be very easy for me to brag that I did much better than market, which was 72%. However, that’s not what this is about. I do not know about others, but when I put my 2009 portfolio performance in the context of my long term vision, in the context of overall objectives, in context of my journey to build wealth, then I know getting 100%+ returns is nothing special. Let me discuss what I mean.

One of my objectives is to continue to have yearly returns in the range of 12% to 18%. And I have said on many occasions, for me, consistency and sustainability is very important. For ease of calculation, let us say, I am looking for 15% of consistent return year after year. Continue reading rest of this article…

TIPBlog Portfolio Update: 2009 Year End

UpdateWhat a year 2009 was? At the beginning of the year, the stock market was trying to find how deep the abyss was. Every other participant in the equity market was trying to run away like there was no tomorrow. Fast forward to second half of the year. The story changed and now the stock market is trying to find its peak. It was in true sense a roller coaster ride.


When the equity market goes up like it did in later part of the year, it gives a false sense of confidence in our abilities to pick stocks. Irrespective of what one thinks, any company stock you had touched in second of 2009, it has zoomed. It really did not matter which company stock it was! Lately, I have seen quite a bit of emails trying to point me towards how the stocks that I negated (or did not pick?) have zoomed up and made them money. I do feel happy for everybody who made good money in 2009. I wish you had shared those winners with readers of this blog. We all want to make money here. Right? Continue reading rest of this article…

Screen Testing Four Small Cap Companies

Readers of this blog have few suggestions for investment ideas or stocks. They have requested to provide my comments and my observations about these stocks. Following are my thoughts. Before you go through them, please understand that these observations are for my objectives.


MIC Electronics Limited (MIC): The Company is a global leader (who made them global leader?) in the design, development, and manufacturing of LED Video Displays, LED lighting solutions, and Embedded Systems/Telecom Software. Most of its revenue come from LED Video Displays, that have become an integral part of sports stadiums, transportation hubs, digital theatres and theme parks, advertisements and public information displays. Continue reading rest of this article…

Free Licenses for MPROFIT Portfolio Management Software

mprofit_boxcoverOnce in a while, I discuss about topics other than investing such as THE HINDU’s website design at foreign source and my thoughts about it. That particular post resulted in passionate discussion on both side of the aisle. There was one theme that seemed to be echoed by quite a few commentators, and that was; there are companies and entrepreneurs that are focusing on developing products. Many entrepreneurs are in fact attempting to develop solutions for Indian consumers. Continue reading rest of this article…

Social Networking: How It is Relevant to Me?

1106489_networkSocial Media is a new buzz in business circles and marketing machinery. If you have an email address and read popular news articles on internet, then it is hard for you to avoid the talk of social media. It is the new in-thing in today’s World Wide Web. There are many different connotations of social media such as social is influence marketing, social is conversation, social is inbound marketing, social is permission marketing, social is community, and many more. At a fundamental level, it is nothing but organization of social groups. I think of it as similar to group of people in our building, our society, our group of colleagues in work place, etc albeit much larger now. One aspect about such web based social groups is that we may not know folks in our society (physically close), but many of us will probably know much more about somebody we have never met.

Naysayers view it as irrelevant because there is lack of privacy, you should not pour your soul into public, has no ROI, its nothing but new tool for marketing, and it is just a platform to keep in touch. Yaysayers view it as new trend in modern society, it is a new marketing opportunity, they want to leverage the presence of large number people, it is where the customers are, that where most of the conversation is taking place, and many more such arguments. Continue reading rest of this article…



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