Behavioural Finance

Ignorance Of The Masses : Think Education Is Expensive? Think Again!

Ignorance In Investing - It is funny how people never ever learn from their mistakes. This is something I see over and over and over again. While fools say that they learn from experience, the wise say that they'd rather learn from the experience of others. To that, I say Amen! I would rather learn vicariously through the eyes of another. As a value investor, my vulnerable persona and esteem takes a royal drubbing whenever I lose money. And I can tell you, losing money is not something that I can smile at. And I believe that this  is the same for many investors out there. But unlike many investors out there, I believe that I am well aware of my limitations as an investor. Coupled with some real world experience, this gives me an edge over others. This is not meant to be a self inflating article but sincerely, I hope to impart some these lessons that I have learnt with as much candour as I can possibly muster.

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Behavioural Finance

Beat The Herd mentality – Your Investing Results Will Improve

Beat The Herd Mentality To Improve Investment Results Beating the markets is beating the herd mentality.T he intelligent investor is a great book to start reading for amateur investors. The book is rich in quantitative data but readers may find it hard to swallow as the language is written with a terse archaic style. But what the book does not touch on is how to be an emotionally intelligent investor and beat the herd mentality. While numbers are easy to handle, one's emotions can prove to be an inconquerable mountain like Everest. And for most of us, this may very well be the final obstacle to being an investor great. Descendants Of The Herd (more…)

Herd Mentality

Paying Up For Growth: You’d Better Know What you Are Doing

Let us do a mathematical experiment here. A company earns $10 per share and out of that, pays a dividend of $8 per share.  If one were to apply a 20 times multiple in the dividend stream going forward , the value of the dividends in perpetuity is $160.  So we could make the argument here that the company is worth at least $160 if the dividend stream is fairly consistent. The $2 per share in retained earnings could lead to some real growth in the future. So if an investor decides to pay $100 per share for that company, that would be considered a good buy from an investor's stand point. (more…)

Issues On Debt

EZRA EZRA , No Longer The Bella Of Dreams

Ezra Holdings 

Ezra Holdings! When inspiration hits me and the juices flow and I feel an explosion of information welling up, my outlet is to share and tell. It may be amongst good friends and confidantes or it could be a humble blog as such. And with a feeling of perkiness, I entitled this article Ezra Ezra, No Longer The Bella Of Dreams. I was reading the newspapers recently. The headlines. " Winding Up Application Filed Against Ezra" . Another headline . "Ezra Receives A Statutory Demand From Forland for $25.5 Million". The thing is this. Before it even makes the headlines, the smart investors have already scooted off elsewhere, leaving thousands of ignorant investors in a trail of financial destruction.

Many retail investors have been bruised financially as a result.  In investing , being formally educated is wise and cheap. Being an ignoramus is bloody expensive. Let not your negative experiences be your tuition fee. Let the prominent investors of our time guide you! Read their books. Digest them! Assimilate them! Educate yourself through the eyes of another I say to you. And you shall surely find your way! Slowly but surely!

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