A lot of investors are freaking out right now from the market drop. Other than the loss of capital, which is very real, the loss of nerve is also due to a misunderstanding of what they have invested in. There’s this drama happening in investor’s mind that investing is a game of betting against the … Continue reading Investing as a drama
“Hope. It is the quintessential human delusion, simultaneously the source of your greatest strength, and your greatest weakness.” - the Architect (Matrix Reloaded) Was reading an article about the experience of a Futures Trader, and it made me think of the problem of Investor Bias. There always exist a bias where the investor is hopeful … Continue reading How to Invest without Hope?
Was chitchatting with an investor when he started talking about his boss: “You know management lar, these are the numbers, by hook or by crook you have to deliver it. I don’t care what you do as long as you get the result.” “I can talk to my guys and get their feedback but management … Continue reading Investor as a boss
One of the fascinating aspects of (financial) bond is that there are many flavors of it. A bond is an I.O.U., you lend me money, I will pay you interest and at the end the loan is repaid. So why are there so many flavors of it? I remember reading an opinion somewhere that the … Continue reading What’s is a perpetual callable bond and is it worth it?
Recently an old client came back to see us after a long hiatus. Gone were the confident high tones of before, now only humility and resignation. His accountant played him out, the tax men got their hooks into him. And thru it all, he got no help and support from his family. But make no … Continue reading How the mighty has fallen…
There are certain things we accept without thinking, as a consequence of living in a world playing a capitalistic game. One of which is: Time = Money. Sounds simple enough, we need money, to get money we need to spend time to get it. As I mentioned previously, time is also energy and our life. … Continue reading Time = Money?
Complacency and overconfidence are the two great enemies of proper investing. There’s a story that a trainer in Penang asked a room full of investors whether all of them lost money in Money games. ‘Yes!’, all of them answered. ‘Would you want to put your money in it again?’, the trainer asked. ‘Yes!’, came the … Continue reading Why investors keep making the same mistakes over and over again