LEARNING


Moneylife Digital Team 14 August 2015
A new US study uses a different metric to prove that they are   In the active vs passive fund management debate in the United States, studies have generally proven that passive management is the best option for investors. Does this mean that highly-paid active fund managers in the...

Read More



Be mindful of your expectations when you buy really expensive shares   Old stamps, antiques, old watches, paintings, etc, are called ‘priceless’ for a reason. They do not follow any rules, or principles, of valuation. Their value could be from zero to infinity, depending on the eye of...

Read More



One must revise investing strategy according to circumstances   ‘Asset allocation’ is a much-bandied and frequently used term in personal finance planning. It simply means how much to invest and in what kinds of assets. Now, finance is a complicated subject. Most people are clueless...

Read More



Moneylife Digital Team 17 July 2015
Investing is a complex process. A checklist can ensure that you do not overlook the essential factors   Kaizen is a Japanese business philosophy which involves continuous improvement of working practices or a manufacturing process. Within the kaizen methodology, checklists are the...

Read More



Moneylife Digital Team 17 July 2015
American workers face an income gap in retirement   Even with 401K savings and social security retirement benefits, most Americans face an income gap in retirement. According to BlackRock Cost of Retirement Income (CoRI), Retirement Indexes for the quarter ended March 2015, a...

Read More



Being aware of the risks we are taking makes it easier to manage our portfolio   Out of 6,000-odd listed companies, maybe a couple of hundred will pass our test which would include factors like: history, stability of business, high return on equity (RoE) and reasonable size. We are...

Read More



Moneylife Digital Team 07 July 2015
Price-earnings Ratio (PE ratio) – reflects the number of times a stock is quoted to its underlying per share earnings. It’s the most popular valuation measure in the stock market and is calculated in two ways. One, divide the market-capitalisation of a stock by net profit. Two, divide the...

Read More



Moneylife Digital Team 03 July 2015
Stock bubble in China again underlines how we never learn   In China, about 29 million new stock accounts were opened in 2015 up to 22nd May. This was more than the new accounts opened in the four previous years combined. More than 10 million new stock trading accounts were opened in...

Read More



Moneylife Digital Team 03 July 2015
A small percentage difference in returns can make a huge difference over the years   While several people know about the power of compounding, many fail to grasp how powerful it can really be—a tiny difference in the rate of return can create a huge difference to wealth, over a long...

Read More



Look beyond ‘well begun is half done’, if you want your performance to be better   In the previous issue, we wrote about picking up a few stocks for systemic investment plan (SIP) of investing. The logical question that follows is: “I have made my shortlist. I like five companies....

Read More



Moneylife Digital Team 23 June 2015
Debt Equity Ratio: This ratio is used to calculate how much of business assets are financed by debt and equity. A higher ratio indicates more dependence on debt which is risky. A higher debt equity ratio is particularly adverse when the cost of debt (interest) is high. Companies with high...

Read More



Moneylife Digital Team 19 June 2015
There is no secret formula to grow your money   “Everyone wants the secret, the key, the roadmap to the primrose path that leads to El Dorado: the magical low-risk, high-return investment that doubles your money in no time,” says Jason Zwieg, who has written pioneering books on...

Read More



Moneylife Digital Team 19 June 2015
As many as 9 out 10 of CNBC’s top 10 fee-only advisers have a conflict of interest   On 3 June 2015, CNBC (US) released its second annual list of the top 100 fee-only wealth management firms based in the US. ‘Fee-only’ registered investment advisors have a fiduciary...

Read More



Here’s how you can dodge the stock market’s minefields while investing   At the Moneylife Foundation’s seminar, held at Pune on 23 May 2015, the debate was on how returns from stocks could be better than those in mutual funds, if only the investor took care to do his/her research well...

Read More



Moneylife Digital Team 08 June 2015
Book value: The term indicates how much assets shareholders would get if the company is wound up. Book value is arrived at after deducting intangible assets from the net worth of the company. Comparison of the book value of the company with market value shows whether the company is overvalued...

Read More



Moneylife Digital Team 05 June 2015
A survey of financial services professionals reveals widespread disregard for ethics   In the light of headline-making reports of corporate misconduct, a survey reveals that attitudes toward corruption within the financial services industry have not changed for the better. Numerous...

Read More



Moneylife Digital Team 05 June 2015
What is the role of luck and skill in investing?   In a memo to his clients at Oaktree Capital, Howard Marks, a well-known investor and writer, says: “I believe a great many things contribute to success. Some are our own doing, while many others are beyond our control.” There’s no...

Read More



Moneylife Digital Team 26 May 2015
Return on net worth (RoNW)—Also called  return on equity. This is the main ratio of interest to equity shareholders. It considers net profit after appropriating preference dividend, if any. It shows the amount that will be available for equity shareholders after paying off all other expenses....

Read More



Moneylife Digital Team 26 May 2015
Increases in whistleblower activity, plus better internal compliance, deters wrongdoers   The Dodd-Frank Wall Street Reform and Consumer Protection Act was adopted by the US Congress in January 2010 in response to numerous instances of financial fraud by some of the largest companies...

Read More



Moneylife Digital Team 23 May 2015
A Moneylife Foundation event hosted in Pune focussed on how one can grow his wealth by picking the right stocks   Moneylife Foundation hosted an exclusive event for its members in Pune on investing in stocks. The event titled “Stocks for Building Long Term Wealth” included two...

Read More

Free Helpline
Legal Credit
Feedback