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.
I 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.
Media 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….
In last one year or so, how many times have you heard and read that “Buy and hold investing is dead”. I bet it is numerous times. I am willing to bet even more on the fact that almost 95% of 30 year old or below will make you believe buy and hold is dead and it does not work. And the examples cited are turmoil in 2008. In addition, the business media and brokerage houses will add fuel to this fire. Well, if they do not encourage you to trade, how will they survive? how will they get their commissions?
I am not a fan of IPOs. I do not consider them an attractive opportunity for my investment objectives. In general, companies or organization come to the market with IPOs to generate capital. Their objectives are to generate as much capital as possible with minimum possible dilution. Companies usually choose opportune time frame to offer it to open public so that sufficient premium can be added to fair value (or book value). I do not find fault with the company. They are doing what they are supposed to do. They are attempting to meet their objective to get maximum possible value from the market.
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