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Showing posts from February, 2013

The 10 Rules Of Investing by Bob Farrell

1. Markets tend to return to the mean (average price) over time. Like a rubber band that has been stretched too far – it must be relaxed in order to be stretched again. This is exactly the same for stock prices which are anchored to their moving averages. Trends that get overextended in one direction, or another, always return to their long-term average. Even during a strong uptrend or strong downtrend, prices often move back (revert) to a long-term moving average.During bullish trending markets there are regular reversions to the mean which create buying opportunities. However, what is often not stated is that in order to take advantage of such buying opportunities profits should have been taken out of portfolios as deviations from the mean reached historical extremes. Conversely, in bearish trending markets, such reversions from extreme deviations should be used to sell stocks, raise cash and reduce portfolio risk rather than "panic sell" at market bottoms. 2. E...

I and SRK

VIP Security: Story of Aryan Khan Son of SRK Disclaimer: This is a story. It is based on Facts and there is no Fiction. All characters in the story exist in real life; any coincidence to a living person is Intentional. Fiction if at all exists in the style of Narration. I and Shahrukh Khan (SRK) have lot of things in common!! For one he has a Pretty, caring Gauri.       I have a lovely, caring Preeti. He has a son who goes to school; I too have a son who goes to School. (What a joke, if a man has a wife and school going son does it make him SRK) Well , not really But what if both children go to the same school. The coincidence does not end here, SRK has security, Z security to be precise, with Commandos covering his family round the clock. I also have Security (what if it is provided by TRIG/JLL / any available potbelly) which is so efficient that it is almost invisible. SRK’s son Aryan khan (AK) goes to school in whatever a...

Investing strategy; Tech and cloning

Mohnish Pabrai is used to making investment pilgrimages. The ace investor is a regular at Warren Buffett’s annual Berkshire Hathaway meeting as well as at the Value Investing Congress that is held every year in New York. His cloning strategy , which almost anyone can implement but not many do, has made Pabrai a multi-millionaire many times over. What prompted you to get into investing? You were a techie and then you had your own business before you became an investor. I was an entrepreneur and I really enjoyed running my business. What happens is that as an entrepreneur perhaps 3-5% of your time goes in figuring out your strategy and direction and what you want to do; 90-95% of your time goes in the heavy lifting of your execution, getting after people and motivating them, and getting all your structures in place. I definitely enjoyed the 5% more than the 95% — getting things right in terms of direction is much more interesting. When I first encountered investing and Warren B...