Investor vs Speculator

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 …

Read moreInvestor vs Speculator

Benefits of reading a good book

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 …

Read moreBenefits of reading a good book

Advantages of using a kindle over a paperback

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 …

Read moreAdvantages of using a kindle over a paperback

Top 10 quotes that will make you read a book today!

A room without books is like a body without a soul. -Cicero “I am a biography nut myself, and I think when you’re trying to teach the great concepts that work, it helps to tie them into the lives and personal ties of the people who developed them. I think that you learn economics better if you make Adam Smith your friend. That sounds funny, making friends among the eminent …

Read moreTop 10 quotes that will make you read a book today!

Why is bookkeeping important for a business?

Bookkeeping is the science and art of correctly recording in the books of accounts all those business transactions that result in the transfer of money or money’s worth. It is important for every business to record all transactions and bookkeeping helps a business do so. It tells you us how to keep a record of business transactions. For laymen who want to know why bookkeeping is important, below is a …

Read moreWhy is bookkeeping important for a business?

When to sell your stock

There are a lot of good reasons to sell your stock. One popular reason is when the price appreciated considerably well as per your expectations. Another reason could be underperformance or bad quarterly results of the company. The investor may also be in pressing the need for money. However, when it comes to selling the stock, the investors do not act rationally. According to investing legends like Buffet and Phisher, …

Read moreWhen to sell your stock