Value = Cost + (Cost X Gain/Loss%) Stock market is a bust place post Covid19. Many new investors […]
It been tough for equity investors. Market has tanked. Impact is more aggravated at individual stock levels. This is in sharp contrast to 2016 or 2017, where money was easily made over free sms tips or television news channels. Unfortunately, this is the true face of stock market which will keep on popping up at regular intervals. You need a strategy to tackle it otherwise all your gains made during bull years will vanish in thin air. If you don’t have enough time or expertise, it is a wise decision to buy a professional subscription.
Once you decide to approach a professional help, the issue arises in choosing the right stock advisor. If you search on google, you will find tons of websites claiming to be the number one.
During our conversation with clients, we were surprised to learn that most of them had no clue about FIFO (First In First Out) rule which is applicable on all demat accounts as per IT Ruling Section 25(2A). If you are looking for selling some portion of your shares (lets say 100 out of 200 shares) then FIFO rule can impact your average purchase price for remaining shares. Let’s try to understand where it applies and how it can be used to our advantage as well.
In tennis, the word “unforced error” is described as a missed shot that is entirely a result of the player’s own blunder and has nothing to do with opposition’s skill. Mostly the player with lesser committed unforced errors wins the game. In investing also, if we can minimize unforced errors, the chances of getting multibagger return shoots up.
World of small cap investment is full of risks & rewards, but at times investors tend to go overboard & increase their risk unnecessarily. Blindly taking more risk does not increase return, in fact it’s detrimental to your wealth. In this article, we will figure out the most common mistakes which many small cap investors commit. We believe if a small cap investor can manage “unforced errors”, there is no stopping of his wealth multiplication.
Keeping up the tradition, we continue to post different varieties of topics under AI Post. Today, we are publishing investment story of one of our subscribers. He wants to keep his name confidential but agreed to share his investment experience with us. There are plenty of lessons in his story and I am sure at some point of time, all of us have committed to same mistakes during early days of our investment journey. Without wasting more time, over to him.
Most of the readers of AI Post are either young or middle-aged people, who are tech savvy and use smartphones extensively. If you are one the them, today’s article is dedicated to you.
We all know that inflation is the biggest enemy which we face in our financial life. Interstingly, inflation can be different for different sectors. For example in telecom, instead of inflation, it is deflation as call rates keeps on dropping. For groceries, it is in the range of 6-8% for last 20 years. Do you know the worst of them? It is not one but two. It is Medical Inflation (14% annual) & Education Inflation (10% annual). In some ways, they are related as well (we will explain it later). The problem is that no one can escape medical inflation as our human bodies are bound to grow old and catch diseases. The question is not “if” it will happen but “when” it will happen. You are ace reader of AI Post, you should be prepared and not caught unaware.
In this article, we will discuss trends in medical inflation, role of private insurers and medical colleges, and how badly it can impact us in future. Of course we have a solution as well and it is not just buying insurance. We are stock advisor and not insurance advisor, but we continue to encourage our readers for their overall well-being even if it is not linked to our core business activity.
Is it possible to create an investment which pays me for lifelong & beyond? This is a question every investor must have asked himself at some point in time. What if you are told that it is very much possible. There is solid mathematical certainty behind it. Last 30 years of market statistics are also supporting us. You can create such investment & enjoy lifelong earnings. The best part, you can even pass this to future generations as your legacy.
Next question will be why it is not known till date? Well, everyone who has a basic understanding of equities, knows but not realizes because of certain predispositions of financial industry. I highly encourage you to read this article entirely. This can be one of the life changing articles, you will ever come across on Internet.
Everyone invest in small cap stocks for getting multibagger returns. Interestingly, many stocks achieve great returns in due course of time but alas we sell them too early. We can have the best of research process backing us but at the end, it all boils down to how much actual profit we are making. The question remains unknown to most investors as in how much time shall one wait before booking complete profit. In this article, we will try to analyse a recent multibagger stock’s journey ‘Avanti Feeds’ and understand why it is tough to achieve multibagger returns & how to overcome them.
There has been flash flood of money into the equities in last couple of years and this snowball is becoming bigger & bigger as it rolls down the hill. Falling interest rates have only pushed normal person to suddenly discover his risk appetite and start pouring money from bank deposit to stock market. While domestic participation is the best thing that can happen to any country’s stock market but are these new joiners well prepared before taking a plunge into the risky world of equities? The side effects of neglecting the risks associated with equities are huge. Let’s try to find out what all should be covered using Maslow’s theory as a parallel.
With increasing retail participation in Indian equity market, there is a strong inflow into small cap universe. Such is the impact that small caps have beaten large & mid caps, second year in a row. Most people have jumped in this narrow space to search for next multibagger stock. While it is difficult to spot a multibagger from pure data analysis, it can be little easier if you are actively taking a note of economic trends around you. At AI, we are sharing our view & personal experience on this.
Market is going up everyday & touching new highs. I am sure you will be happy to see your portfolio grow stronger than ever. However, it will be different challenge when market slides down. As humans, we have affinity towards profit and aversion to loss. However, the fact is that loss occupies more space in our mind than profit. Markets are bound to go up & down and as ace investor, we should be ready to deal with both situations. So, do you have a loss containing strategy? If not, we are sharing some of our thoughts & explaining its impact, if not managed properly.