Aug 3, 2013

SOME VALUABLE EXCERPTS FROM PARAG PARIKH'S BOOK VALUE INVESTING AND BEHAVIOURAL FINANCE.

SOME VALUABLE EXCERPTS FROM PARAG PARIKH'S BOOK VALUE INVESTING AND BEHAVIOURAL FINANCE.
·         …is it because of the inconsistent performance of business behind the stocks of is it because of the behavior of the market participants, who as a result of greed and fear get excessively optimistic and pessimistic about the future resulting in bull nd bear phase?
·         …a conclusive study done on Sensex which highlights that it is not the inconsistent performance of companies constituting Sensex but the follies of crowd behavior which make investing risky.
·         IPO investing is not for a value or a contrarian investor. Value found in bear market and IPOs are a product of bull market.
·         …we have created financial markets where such insanity works.
·         Research on the Indian indices high lights some important drawbacks of passive investing.
·         Failure is as predictable as success because it is the strength of characters which separates the winner from the loser.
·         Economists say that the inability to delay gratification is the primary reason for economic failure in life.
·         Ninety percent of what we do is dictated b habits.