Buy and Hold Strategy has its limits

A successful self trader – Rule # 35

Nobody doubts that equity generates higher returns in the long run; at least in most cases. As much as the “Buy-and-Hold” approach to long-term investing works, it has its limitations. There are 3 risks in any buy-and-hold strategy. You may be accumulating junk stocks, you may be out of sync with the times and your funds may be just locking up. Equity creates value in the long run, but, not always! Continue reading

What factors to look for when opening a Demat account?

Those who were trading in the equity markets prior to 1997 would vouch for the disadvantages of the physical delivery and settlement system. Shares were lost in transit, there were signature mismatches, there was the risk of bad delivery and above all you had little control after the share certificates were given to the broker. All that changed with the introduction of demat in 1997. Today over 99% of all holding and 100% of all settlement happens in demat form. As an investor you might be confused on how to choose the best demat account as you have the choice of a larger number of depository participants. Here is a check list of factors you must consider and ask yourself before opening a demat account: Continue reading

March Trade Data

Trade Deficit narrows, but is it sustainable?

The March Trade data announced during the week had some major positive indications. The exports showed a positive trend on a month-on-month basis while imports of gold were down. Trade deficit came down substantially to a little above $5 billion and is almost entirely compensated by the surplus on the services side. Some of the key takeaways from the trade data were as follows… Continue reading

Sun Edison Falls

What it means for the future of Solar Energy…

Nearly a decade and half before Sun Edison went bankrupt another quasi-power company by the name of Enron had also filed for bankruptcy. Like the modern day Sun Edison, Enron too was a darling of the stock markets and had notched up phenomenal growth in its last few years of its existence. But the biggest similarity between the two companies was in the way they both employed financial engineering, which eventually led to their demise. Continue reading

Reliance Q4

Continues to impress on the margins front…

The Reliance fourth quarter results announced on Friday were much better than street expectations. This was partly due to the lower expectations that had built around the fourth quarter. A profit of Rs.7380 crore was slightly above street expectations. The two things that were really commendable about the results were the above average margins and the performance of its downstream refining and petchem business. Continue reading

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