We all know that investing is fraught with risks, especially investing and holding assets classes like shares involve higher risks. The risk becomes even greater if excessive investment is done in a single stock. In order to mitigate this risk of holding an asset especially shares, diversification is the key. It is also prudent to…
INVESTING AND “THE STORY OF THE BUNDLE OF STICKS”
Once an old man who thought he would not live long, called his often quarrelling sons and asked them to bring some sticks. He then tied the sticks together and gave the bundle to his youngest son. “Can you break that bundle of sticks?” he asked. The boy tried, but couldn’t. Then the other sons…
INVESTING – BEWARE OF COPYING “BIG” INVESTORS
Take for example, you decide to INVEST Rs.5,000/- per month. You buy 10 shares of a company for Rs.100 on 01.01.2018. On 20.01.2018, you found that the value of the share to be Rs.75. What will you do? Panic and sell, or accumulate more of it. Well…now let’s start from the beginning…in the first place…