Your years of financial markets experience and the ability to constitute reliable investment strategies may often generate profits. But, you must be aware that strategies do not always work in your favor. Sometimes you may have to live through immense volatility where nothing seems to work. A long term investor can easily ride through uncertainty by following a simple rule, buying stocks of good companies at fair prices and holding on to them. Fair Value [...]

Ratings agency S&P once again issues warnings on sovereign creditworthiness of many G-20 nations including US, which was deprived of its AAA rating last August. According to S&P, US along with many other G-20 nations will face immense fiscal drags due to rising healthcare costs. It’s likely that governments of many key economies will find it difficult to manage fiscal burdens and as a result we will witness massive drop in public financing. Is it [...]

The investment business is made up of building blocks of wise words and phrases, out of which a popular one by Warren Buffett’s is “Be fearful when others are greedy and greedy when others are fearful.” Coming from Mr. Buffett who has made a fortune many times over using that logic it does seem a smart approach. However, when it comes to application of this approach, these wise words become a little difficult to follow. This article [...]

Many money managers toss around an old investment adage “be risk diverse, not risk averse”. This captivating concept is one of the strengths of any good investor. Lets read further to find out why risk isn’t as bad as it sounds. Diversification isn’t as simple as many would wonder, its a complicated strategy and you should be aware of how to do it effectively, otherwise you won’t be limiting your risks.

Stock brokers don’t work for free. It’s high time you learn this looking at your own stock trades so far. They might be good, they might be cheap, but they don’t work for free, and you can seldom trust them completely. It is worthwhile to spend some time and keep a check on your stock broker; lest you’ll know only the first five letters of the word ‘broker’. But hey, don’t get scared, we’ve come up with [...]

With the burst of online discount brokerages, anyone with an internet connection and a bank account can try his hands at trading stocks within a week. With this unprecedented ease of access more and more people are encouraged to explore potential investments for themselves, rather than leaving it for mutual funds or money managers. However this also leads to some common follies which first time investors tend to do while they dream of making it as big as Warren Buffet. [...]