General

Investment Contract

Why you need a self-attested Investment Contract for all your new investments.

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An investment contract is a promise to yourself that you will not speculate in stock unnecessarily. It also ensures that you buy and hold a stock as long as the underlying reasons for investing in it hold true. It is a promise you make to yourself that you will never involve in speculative activities and that you will keep on investing regularly through systematic investment plans. The investment contract was …

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Banking System of India

It’s time to clean up the banking system

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The banking sector is the heart of any economy. Its the engine that drives the entire nation. It’s a place where surplus units(investors) meet the deficit units(borrowers of money). This is one sector which if fails, can have a domino effect on the entire system. It is, therefore, our responsibility to make sure the banking sector is always in a healthy condition. Recently fraud in the banking sector of India …

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Corporate Governance

12 corporate governance changes that Indian banks need.

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All the countries, irrespective of their stage of development, need funds for their economic development and growth. In the economy, these funds are obtained from the savers or surplus units (the units which have more income than their consumption) which may be household individuals, business firms, public sector units, Central Government, State Governments, Local Governments, Semi-Governments, etc. There are certain investors or deficit units whose consumption or investment is more …

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Investor vs Speculator

Investor vs Speculator

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Parameter Investor Speculator Investment Thesis Investment based on durable competitive moats Investment based on disruptive and cool industries. Time Horizon Long term(>5years) Short term (single/few days) Risk Undertaken Reasonable risk High Risk Return Expectations Expects consistent return over time Expects abnormal returns in short time Mentality Sticks to fundamental analysis for the long term. Jumping the bandwagon from one stock to another Risk Capacity Risk averse Readily takes more risks …

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Benefits of reading a good book

Benefits of reading a good book

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Reading is essential for those who seek to rise above the ordinary. A person with good reading habits feels restless if a day goes by without reading. Books can leave a lasting impression on the rest of our lives. Therefore it is necessary to inculcate reading habits if you haven’t done so far. Today we will be discussing the benefits of reading good books. It can increase your vocabulary and …

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Advantages of using a Kindle for reading

Advantages of using a kindle over a paperback

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I was a big fan of paperback books. But with time I have realized the advantages of reading on Kindle far outweigh the benefits of reading from a hard copy. Today I would like to discuss with you the various benefits of using Kindle to read books. It is easier on the eyes than most other screens The lack of an LCD-based backlight system and the e-ink technologyresults in less …

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