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…

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…

Three Small Caps Stocks – Not for my Long Term Buy and Hold

1035790_pick_up_drop_off_onlyWhat do you do when stock market, and hence all stocks, are trading at a much higher price than you would be willing to pay? If you are like any other value investor or like me, then you would continue your reading and prepare your watch list. On many occasions, you would like the stock but unfortunately they are trading at a premium for pulling the buy trigger. In early December, I had shortlisted five small cap stocks for further reading. Few readers namely, arunsg, Young@market, Rutwik, Aditya, anonymous, and two more in emails presented their comments on the list. Just looking at these comments, Aegis Logistics and Numeric Power Systems seem to be preferred companies.


I completed my analysis and presented a discussion about Aegis Logistics Limited. I also liked Graphite India Limited (will present my discussion shortly). I initiated starter positions in both of these companies. So now the question is what about remaining three companies? Continue reading rest of this article…

Hyderabad Industries – Continuing the Discussion

ist1_6855981-discussionRecently, I looked into Hyderabad Industries Limited (HDIL) and discussed my analysis on this blog. There were few comments and mild discussion with reference to my conclusion and turnaround aspect of the HDIL. Simultaneously, I also posted the same analysis on Moneyvidya’s blog. Over at Moneyvidya’s blog, the discussion was also centered on similar characteristics of HDIL. There were few good points which I believe would be worth mentioning on my blog too. Therefore, I am presenting those points here with some additional thoughts. Readers can refer to the original discussion. There are two different aspects in this conversation. One aspect is about how this commentator critics my observations and my analysis. It would be fair to say the analysis was trashed, challenged to check the pricing after 6 months, and was asked to eat my pudding. Well, I think it is better to keep this part of the comments aside because it is not going to help us learn anything. Continue reading rest of this article…

Gold: Should I be Investing ?

gold-bars-3Gold is going bonkers. At present, all it knows is how to climb up. Central banks around the world seem to have caught the bug of buying gold. China wants it, India bought it, Sri Lanka bought it, Russia openly expressed interest, and probably few more. One common theme in all central bankers buying gold seems to be the desire to maintain the value of its assets. Since the continued supply of printed dollar is flooding the global markets, individual nations believe there will be reduction in value of dollar. And hence these central banks want to hold their assets in gold (rather than dollar). Few other factors that one can think of are as follows:

  • Historically, gold is a perceived as safe harbor against collapsing economy, political unrest, collapsing currency, etc. And situations like US/UK sovereign debt, Dubai, Japan’s losing economy, etc does not help. This kind of environment only fuels the gold binge. Continue reading rest of this article…

Reader Questions and Answer

I receive questions in my email and I attempt to respond to all of them. I tend to ignore questions that fall into the category of “looking of quick tips or opinion”. I do not mean to be rude to individuals to whom I do not respond. But I believe in being thoughtful, objective, and worthwhile in my response. If I cannot, then I just leave it as is.

Once in a while I like to sample out few questions that may be applicable to wider audience. Since the last Q and A, I received few interesting ones and I am discussing below.


Quality of the Content in Blogosphere: why is it that free content sucks! Why are bloggers repeating the same content. Do you have any blogging study reference material which has done research to show blogging quality and its ability to earn side income.

Continue reading rest of this article…

Adding My Thoughts to the Discussion

herd_groupI received quite a bit of interesting response to my last post about THE HINDU working in foreign partners. When I posted this note and a question for readers to judge, I had decided not respond because it was not related to investing. However, reading through this discussion, I can see many have put lot of thoughts behind their responses and I got to know differing viewpoints. I respect your differing opinions and hence I am compelled to present my thoughts too.

This issue seems to be a hot button (any of my investing post does not generate such a two sided discussion). I showed this post to few my friends and it generated similar debate. In almost all cases, there are folks on both sides of the aisle. Here also a very good debate from both sides.

In my view, I look at this aspect in three different time scales, viz., (1) Prior to 2000; (2) period between 2000 to 2008; and (3) 2008 onwards. I am not saying this is the only way, but we can only reflect on the past and project for future.

Continue reading rest of this article…

Folly of Bonus Shares

monthly-dividend-portfolio-reviewMedia pundits and business experts are again beating the drums of bonus shares from Reliance. And we all individuals, without giving the thought, start beating the drum of the bonhomie, and are rejoicing that we are getting something for free. Because it is termed as “Bonus”, it is free and we all should be happy for it. Happy that company management is thinking about shareholders and giving them “Bonus Shares”. Coming from school of “value thinking” I believe this is fools paradise. We have lost our ability to think rationally and then make a judgment call. Let us discuss little bit more….

Continue reading rest of this article…



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