After four long months of break, the Chief of Speculation is back! After twelve years of speculating in stock market, I have rightfully bestowed myself the title – “The Chief of speculation”. As you will see it shortly, I have done everything to deserve that title. I suppose, you are now curious to relate the […]
There Are Certain Things That Cannot Be Adequately Explained To A Virgin Either By Words Or Pictures. – Fred Schwed Jr. There are few investing books, which have not lost their relevance after more that 15 years of publication. One of the books from that category is “Where are the Customers’ Yachts?” by Fred Schwed […]
Daniel Kahneman and Tversky are two Nobel price winning economist. Their most important contribution is called prospect theory which describes individual behavior in the phase of risky situations where there are prospects of gains and losses. Below is an insightful abstract from one of my favorite book “Thinking, fast and slow“. In general financial economist […]
“Selling your winners and holding your losers is like cutting the flowers and watering the weeds.” – Peter Lynch. In one of Berkshire Hathaway’s shareholder letter, Warren Buffett quoted a line from the book “One up on Wall Street” by Peter Lynch. The quote is “Selling your winners and holding your losers is like cutting […]
“A lot of people with high IQs are terrible investors because they have got terrible temperaments” – Charlie Munger If there is one thing which is responsible for making or losing money in the stock market, it is Behavioral Biases. Each of the below topics deserves a full chapter but lets us review them […]