Wealth Creation

amitrandive

Well-Known Member
#41
POSTAL , INSURANCE, MEDI CLIME , ...

BUT DONT INVEST IN Tax sever mutual funds at present it is 3 years lock in period ... because market is at high ...

if market crash your investment may lose .
Yes Sir

Invest with care , not with the only intention of tax saving.
Invest to become wealthy and provide for your retired life.

A very good article on how people invest in the correct/wrong instruments sometimes only for tax saving purposes and that is wealth destruction.

Rs 64,000 crore idle wealth lying unclaimed


http://articles.economictimes.india...perative-accounts-provident-fund-organisation
 

amitrandive

Well-Known Member
#43
Millionaire Teacher:-Andrew Hallam

Source : Internet


Andrew Hallam is a teacher at the Singapore American School. His Millionaire Teacher is just the right book for novice investors. He not only provides the winning strategy in terms of your personal financial life, but he also provides the winning investment strategy. The book contains Hallam's nine rules to become a millionaire. And he has them all right. If you know people who are financial train wrecks waiting to happen, recommend this book to them. It may be the best investment they make.

Rule 1: Grow Rich by Spending Like a Millionaire -- you'd be surprised how real millionaires spend their money, as opposed to pretend millionaires

Rule 2: Use the Greatest Investment Ally You Have -- time, and the power of compound interest -- so begin investing at as early an age as possible

Rule 3: Small Percentages Pack Big Punches -- a simple indexing strategy is the winner's game

Rule 4: Conquer the Enemy in the Mirror -- know your financial history so you can avoid getting caught up in the noise and emotions of the market, and believing this time it's different

Rule 5: Build Mountains of Money with a Responsible Portfolio -- make sure you have a sufficient amount of bonds in your portfolio

Rule 6: Sample a "Round-the World" Ticket to Index -- build a globally diversified portfolio

Rule 7: Peak Inside a Pilferer's Book -- he exposes the sales tricks of Wall Street and non-fiduciary advisors

Rule 8: Avoid Seduction -- newsletters, junk bonds, hedge funds, gold, fast growing markets are all bad ideas

Rule 9: The 10% Stock Solution...If You Really Can't Help Yourself -- if you really can't resist having an entertainment account, Hallam presents some Warren Buffett-like suggestions on how to pick stocks

Disclaimer: This is not a marketing for the book.The 9 rules are fantastic to follow for Wealth creation.
 

lemondew

Well-Known Member
#44
hi amit,

I am not sure but thght this is the right place to ping you in your thread. I saw some of ur posts way back where u queried on having charts of difference of immediate future and later dated future in amibroker section. Then plotting opportunities of buy when difference is less and sell when difference is high. Does this work just tell your experience pls.


Quote "Dear All

Can we plot the price difference between two different month contracts on a single chart?

Say price difference between Nifty Future July and Nifty Future August.

See attached as an example.

A 5 min Crude Oil Chart of price difference between August and September contract.
"
 

amitrandive

Well-Known Member
#45
lemondew

You can send a PM for this purpose.
Regarding your doubt , I have never tried that ,but it has to work on Expiry days for a short time span.

Nowadays arbitrage trading has become difficult due to algo trading and high frequency trading.
 

amitrandive

Well-Known Member
#46
Peter Lynch ran the Fidelity Magellan Fund for 13 years, during which time Magellan was the number one ranked general equity fund in America. His books One Up on Wall Street and Beating the Street are filled with his accumulated wisdom and in Beating the Street he gives a fairly detailed account of how he did his analysis.

The first thing that will strike new investors as strange is that Lynch's methods are actually so simple that mostly an amateur could use them entirely unchanged and with the same results. Lynch does not use any gimmicky computer programs, either to pick stocks or optimize the portfolio for volatility. Each and every company invested in by Magellan was considered on its own individual merits, and the managers of Magellan generally did their very best to completely avoid investing in anything that consensus opinion from the average Wall Street analyst declared was a good thing.

Lynch sums up his points in Beating the Street with a number of humorous "Peter's Principles", which appear here. Do take the time to read Beating the Street in its entirety though, as he makes a number of very interesting points throughout.

http://www.rbcpa.com/lynch's25goldenrules.html

PS:Will be posting excerpts of these rules
 

amitrandive

Well-Known Member
#47
Peter Lynch's Principle Investing principle

Never invest in any idea you can't illustrate with a crayon.

A class of seventh graders at an American primary school did a social studies project on stocks, the kids had to do their own research and dig up stocks for a paper portfolio. They sent their picks to Lynch, who later invited them to a pizza dinner at the Fidelity executive dining room, illustrating their portfolio with little drawings representing each stock. Lynch just loved this because it illustrates the principle that you should only invest in what you understand, the kids portfolio consisted of toy manufacturers, makers of baseball swap cards, clothing manufacturers and outlets, Playboy Enterprises (a couple of boys chose that one), Coke, and other stocks of that ilk. With a portfolio notably lacking in glamorous technology ventures and entrepreneurial risk taking they went for solid stocks with excellent profits, their portfolio returned 69.6% against a background of a 26.08% gain in the S&P500 in 1990/91.
 

amitrandive

Well-Known Member
#49
Peter Lynch's Principle Investing principle

"Weekend worriers" are those pundits that always have a thousand reasons why the economy is bad and it is not a good time to invest in stocks. He points out that even he is guilty of this, appearing on the prestigious Barren's panel on the state of the economy to prognosticate and outdo the other panelists on why the market is about to crash. He also notes that none of the people on the Barren's portfolio are anything less than the top experts on investment, managers of the biggest and best funds and all highly respected, obviously even with all the doom-saying they still find some time to invest.

Lynch advocates looking at stocks for their own value, not to go in for top-down analysis in some futile attempt to predict the state of the economy and their effects on stock prices. The market crashes when stocks are way over valued, and doesn't usually crash again until stocks have become over valued again. His point comes down to the old saying, "buy in gloom, sell in boom". When the experts are bearish is the time to buy.
 

amitrandive

Well-Known Member
#50
Peter Lynch's Principle Investing principle on Mutual Fund

As long as you're picking a fund, you might as well pick a good one.

At the time Lynch wrote his book, there were more American mutual funds than there were listed companies! The majority of fund managers would rather be part of the Wall Street herd than do any serious research of their own. Despite the argument for a fund being that you are entrusting your money to a professional who will spend more time doing research than you ever could, the level of analysis in all but a minority of funds is very shallow, and tends to be the corporate equivalent of keeping up with the Joneses.

Funds with big entry fees are not necessarily any better than funds without, the fund that comes out of nowhere and gets the top ranking one year is probably just highly leveraged in something that happened to do well that year, and will fail the next. In their quest to invest conservatively most managers buy stocks that have already been bought up to expensive levels, shunning investing in out-of-favor industries. Lynch gives a number of tips as to what to look for in a good fund, but his main point is that the majority of funds are duds. Often it takes as much research to find a good fund as it takes to find a good stock, perhaps more research since there are more funds than stocks.
 

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