In the last post (Link), we had discussed on how equity returns are driven by earnings growth and valuations. We had further detailed on how to evaluate earnings growth. In this post we will move to the second part of the equation - Valuations. Let's start with a basic question - How do you put … Continue reading A layman’s guide to equity valuations
When investing in equities, the most common question is "what returns will I get?". As seen in the earlier post (Link), equity returns are extremely volatile in the short run (sample this- the 1Y returns for Sensex has ranged from 256% to -56%) and tend to become less volatile with increasing time frame. In order to have … Continue reading Equities – dismantling the returns !!
In our last post, we understood that investing in equities is a reasonable proxy to entrepreneurship as you get to have part ownership in a business. So intuitively entrepreneurs on an average should have made reasonably good returns over the long run, and as a corollary, equity investors should have also made good returns in … Continue reading Equity Investing – Importance of Time !!
Out of all asset classes, Equities (stocks) are unfortunately the most misunderstood. My mom thinks it’s gambling, my friends think it’s something which lets you make money without working hard and unfortunately many of them who did try their hand at equities lost money and have vowed never to get back into this again. The … Continue reading Equity Investing – getting the basics in place
SIP is the new "in" thing.. In recent times there have been several ads and articles focusing on the benefits of SIP (systematic investing plan) in equities (via equity mutual funds). Systematic investment plan or SIP as it is commonly referred to, is a disciplined investing process where you keep allocating a predetermined amount every … Continue reading SIP in Equities – don’t forget this ignored component !!
The Eighty Twenty Investor 