25 Jun 2011

Biggest growth story of the 21st century - Indian economy

Warren Buffet once said that he owes his remarkable sucess to a luck factor as he was born at the right place(USA) at the right time. The stupendous growth of US economy after world war II for the next 60 years was the biggest growth story of 20th century. Warren and lot of other legendary investors like Benjamin Graham, Philip Fisher, John Templeton were born at the right time in US and rode the US economy growth to create their wealth in billions of dollars. We , Indians are staring at the same kind of opportunity to create huge...

How efficient is the Efficient market theory?

Efficient market theory is one of the key theories of modern finance. It challenges the concept of value investing.Widely taught in all Ivy league universities, it says that its impossible to beat markets consistently as markets  are super efficient in capturing all the relevant and latest information and events Therefore no living mortal can achieve better returns than market consistently. Many of the big investment gurus have scoffed at the efficiency of the market . Warren buffet once said that "if markets were so efficient as the...

What is "Value Investing"

Value Investing : This is a investment philosophy , conceptualized by Benjamin Graham in 1949 in his book "Intelligent investor" . Benjamin Graham is known as the greatest investment guru of 20th century - mentor to legendary Warren Buffet. Its an investing style which demands investing in assets/stocks available at a price which offers substantial discount or "margin of safety"with respect to intrinsic value. Margin of safety: This concept has been considered as key cornerstone of value investing by big investors...