Sunday, December 30, 2012
Monday, December 24, 2012
Merry Christmas and a Happy New Year!!!!!
Dear All,
Merry Christmas and a happy new year to all my friends, clients, students,teachers, family, critics and everyone who has supported me in life. Its been a brilliant journey so far in wealth management for all of you as well as teaching the students about the intricate details of money management and achieving financial freedom in life.
Its a commitment like always to be able to bring about a change in people's financial lives. I shall strive to do my best and make sure that I help you in your goal of wealth creation which has been my motto throughout. I have always maintained my stance that to do well and be happy in life, you need to focus on 2 things:- 1)Building Relationships and 2) Creating Wealth. If one is able to achieve these 2 goals in life, there is no stopping him or her from leading a happy and blissful life.
Have a great new year and let us commit to ourselves to take the country forward. If each one of us can display passion and sincerity in the way we work and conduct our lives, we can bring about the change that we want in this country.
All the best!!!! Cheers!!!!!
Your Friend,
Vivek
Merry Christmas and a happy new year to all my friends, clients, students,teachers, family, critics and everyone who has supported me in life. Its been a brilliant journey so far in wealth management for all of you as well as teaching the students about the intricate details of money management and achieving financial freedom in life.
Its a commitment like always to be able to bring about a change in people's financial lives. I shall strive to do my best and make sure that I help you in your goal of wealth creation which has been my motto throughout. I have always maintained my stance that to do well and be happy in life, you need to focus on 2 things:- 1)Building Relationships and 2) Creating Wealth. If one is able to achieve these 2 goals in life, there is no stopping him or her from leading a happy and blissful life.
Have a great new year and let us commit to ourselves to take the country forward. If each one of us can display passion and sincerity in the way we work and conduct our lives, we can bring about the change that we want in this country.
All the best!!!! Cheers!!!!!
Your Friend,
Vivek
Sunday, December 2, 2012
How many stocks should you have in your portfolio?
Hi Friends,
A lot of people tell me that they have a lot of stocks in their portfolio. When I ask them how much they had initially invested, they are clueless and say that they have been investing for a long time. The demat account is huge and their homes are flooded with random annual reports of companies whose very look and tone speak volumes about the unprofessionalism and their bleak future.
These are the very people who complain about stock markets not giving adequate returns. My reply to them is simple and curt: If you are going to buy crap, you should expect crap in return.
Warren Buffett had once famously quoted, "When people overdiversify a lot, they are not diversifying their risk but they are diversifying their ignorance."
So, how many companies should you have in your portfolio?
The answer is very simple: "Have as many companies in your portfolio which you can manage for efficient returns and which are established names. To put it simply, one should not have more than 15-20 companies in his/her portfolio." Choose the sector which you feel is going to be the breakout sector in the near future, analyse the top 3 companies in that sector and buy only one company from that sector.... I repeat "Buy only one company from the sector which you feel is a great sector and a great company to be in." If you are having Tata Steel, Jindal Steel and JSW Steel in your portfolio and you feel that you are a proud shareholder of 3 great companies, its time to reflect on the blunder that you have made. If there is a slowdown in the metals sector, all the 3 companies will take a knock.
Hence it is very important to choose one company from a sector which you think can weather the storms of adversity or financial meltdowns and stick to it through thick and thin, if you are planning to invest long term. Always remember that the stock market is not a casino. If you are expecting a return of 50-100% return in a year in stocks, they would shut down the casinos.
A little bit of this and a little bit of that will do nothing but will confuse you totally. So if you have a great company like L&T in your portfolio along with a losing stock, the gains that you make from a blue chip would be offset by the losses in a company with bad fundamentals.
Hope this article helps all of you who are scared of analysing your portfolios due to the junk that has been bought. Have a concentrated portfolio just like the Warren Buffets or the Rakesh Jhunjhunwalas. All the rich investors worldwide have a concentrated portfolio.
Your Friend,
Vivek
A lot of people tell me that they have a lot of stocks in their portfolio. When I ask them how much they had initially invested, they are clueless and say that they have been investing for a long time. The demat account is huge and their homes are flooded with random annual reports of companies whose very look and tone speak volumes about the unprofessionalism and their bleak future.
These are the very people who complain about stock markets not giving adequate returns. My reply to them is simple and curt: If you are going to buy crap, you should expect crap in return.
Warren Buffett had once famously quoted, "When people overdiversify a lot, they are not diversifying their risk but they are diversifying their ignorance."
So, how many companies should you have in your portfolio?
The answer is very simple: "Have as many companies in your portfolio which you can manage for efficient returns and which are established names. To put it simply, one should not have more than 15-20 companies in his/her portfolio." Choose the sector which you feel is going to be the breakout sector in the near future, analyse the top 3 companies in that sector and buy only one company from that sector.... I repeat "Buy only one company from the sector which you feel is a great sector and a great company to be in." If you are having Tata Steel, Jindal Steel and JSW Steel in your portfolio and you feel that you are a proud shareholder of 3 great companies, its time to reflect on the blunder that you have made. If there is a slowdown in the metals sector, all the 3 companies will take a knock.
Hence it is very important to choose one company from a sector which you think can weather the storms of adversity or financial meltdowns and stick to it through thick and thin, if you are planning to invest long term. Always remember that the stock market is not a casino. If you are expecting a return of 50-100% return in a year in stocks, they would shut down the casinos.
A little bit of this and a little bit of that will do nothing but will confuse you totally. So if you have a great company like L&T in your portfolio along with a losing stock, the gains that you make from a blue chip would be offset by the losses in a company with bad fundamentals.
Hope this article helps all of you who are scared of analysing your portfolios due to the junk that has been bought. Have a concentrated portfolio just like the Warren Buffets or the Rakesh Jhunjhunwalas. All the rich investors worldwide have a concentrated portfolio.
Your Friend,
Vivek
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