Financial freedom is not a mere state of mind
Financial freedom is not a mere state of mind; it is the perk of being prudent with your earnings. It is not about being a millionaire or a business tycoon; rather it is about having a dependable residual income that covers your expenses and lets you live the life you want to live. Today, we […]
Latest words of wisdom by the Oracle of Omaha – Warren Buffett
Even the Oracle of Omaha has seen a few firsts with this Pandemic at bay. For starters, it was the first time Buffett went virtual to report the recent financial performance of Berkshire Hathaway, which typically is a week-long extravaganza- a treat in itself. He confessed never to have presented with the assistance of PowerPoint […]
News Bias
In today’s technologically advanced world we have an overload of information. We are informed about almost everything but know only a few things. You might wonder why? Let’s take an example. Can you name one piece of news over the past few years that have helped you take a certain drastic step with respect to […]
Fear of Missing Out
Do you feel Jealous or feel that others are doing something more appealing than you when you check their wats’app status or Facebook pictures ,Thanks to emerging social media which has made FOMO (Fear of missing out) a part of our routine life. FOMO is a type of social anxiety wherein the person feels that […]
Recency Bias in investing
Recency Bias is pretty simple. Just think it this way “your short term memory dominates your long term memory” Usually it is the tendency that what happened in recent past will continue in the future. Consider an example of flipping a coin. We all know that the probability of any of the two possible outcomes in […]
Narrow Framing Bias
We don’t see things as they are; we see them as we are.” — Anaïs Nin Narrow Framing Bias: Narrow framing means taking a decision without considering all the factors that can affect a particular decision. Example: Mr. Harshil wants to buy a Phone the only factor that he thinks of is the brand though […]
Sunk cost fallacy
Sunk cost is a cost that has already been incurred in the past and can’t be recovered. For example: You booked tickets to watch a movie but you caught viral infection, still you went to the movie to justify the money you spent to purchase the tickets instead of taking rest. So, have you justified your […]
Behaviour Biases
At its core, behavioral finance attempts to understand biases in human behavior when it comes to personal finance. It combines social and psychological theory with financial theory as a means of understanding how price movements in the securities markets arises independent of any corporate actions (changes in the intrinsic value of the stock). One of […]
Focus hard on investment process and not on its past “outcomes”
These days, Sensex is at new high and investors are still bullish on pharma and FMCG sectors. Just because in last 5 years these two sectors performed well does not mean they will continue to do well in future too.Such thinking is absurd. Most investors fall victim to this behaviour of analysing past outcomes while taking future investment decisions. […]
