Knowledge Nuggets

There are two important quotes by Investment Gurus for Stock Investing- Warren Buffet and Peter Lynch

As Peter Lynch has quoted, while selecting the stocks for study or investment, it is important to be aware that you are buying a share in the business of that particular company. Hence, to understand how much returns it can generate or how much risk does it carry, we need to understand its business, what industry, sector does it belong to and, how much is its contribution to the economy?

While understanding the business of the company behind the stock, if we do not understand any of its parameters stated above, as Warren Buffett has quoted it is adivsable to invest in it when you understand it. 

ESG - Stands for Environmental, Social, and Governance. 

It's high time, we accept responsibility towards our Mother Earth and its beings. It can be achieved by being responsible investors. Consider companies in your analysis & investments that are ESG issues sensitive, ESG compliant, and/or working sincerely towards better futuristic solutions.

The dynamism of Risk Profile and Financial Plan Review

The risk profile of an investor does not stay static.

It changes with time. 

Change determinants -

Life-changing events such as marriage, children, and retirement.

Changes in level of income, debt, or changes in the investment horizon

Any changes in risk profile have to be monitored so that the financial plan and portfolio is aligned to the new requirements.

Why is it raining IPOs?

The market is rallying and is at high levels

Lot of investors looking out for different investment avenues. 

Hence it is an opportune time to launch an IPO and get attractive valuation. 

One of the best ways is to read our bank statements and credit card bills. 

What does it say? 

It tells us lot about us, whether we are a disciplined spender or an emotional spender or are we being a hoarder .. ? 

Most importantly, it nudges us to have a personal budget categorising our needs, wants and desires. 

Developing this habit does not require super human capabilities. What it asks for is, to just cultivate emotional discipline.