Image Credit What was Einstein's, the greatest ability? Is it his mathematical mindset? Obviously he had a brighter, better and sharper brain than us. However, his moat lies somewhere else. It is his ability to sift the essential from the non-essentials, where we lack the capability to grasp that simplicity. Albert was not born with... Continue Reading →

Image Credit Our mind generally associate investing with finance. Since we associate investing with money and money with finance. However, like Doctors, investor doesn't need any degree related to any subject to practice the profession. Let's explore 2 real life scenario to understand better. There was a lady named Grace Browner in United States. She... Continue Reading →

Image Credit Why do we celebrate? We celebrate to have fun, socialize and make new memories. Celebrations fill us with positivity. When was the last time did you celebrate? If you haven't celebrate in a while, we can do that today. After all we have a reason too. Any wild guess what can be the... Continue Reading →

Image Credit How does even the image relate to the topic? Let's figure it out. After 9/11, there was drastic decline in the airline passengers and increment of cars in the roads. As people wanted to avoid flying, after having seen such a major accident. There were more cars on the roads. Americans were pushing... Continue Reading →

Image Credit Probably during your school days you might have across the Wright Brothers. After all they flew the first powered flight in the history of the World in December 1903. If we look from hindsight, what do you think this must be covered in newspaper or not? The answer is obvious it should be... Continue Reading →

Image Credit The theory was formulated in 1979 by Daniel Kahneman and Amos Tversky. Further, it was developed by them in 1992. It is the founding theory of behavioral finance and behavioral economics. Later in 2002, Kahneman won the Nobel Prize in Economic Sciences for his work in developing the "Prospect Theory". By now you... Continue Reading →

Image Credit Illusion is a deceptive appearance, where we generally miss some of the minute important points. We live a significant part of our life in thoughts, not in reality. A sign that we like illusions. Rolling back to the topic, money illusion is an economic theory that people have the tendency to see their... Continue Reading →

Image Credit When the Queen of England visited London School of Economics in 2008, here question to the economists was, "why nobody noticed it?" They failed to predict the financial crisis of 2008. There is lots of research done in the past in economic forecasting and there is still lot of ongoing work to predict... Continue Reading →

Image Credit If we see the trend of the last 30 articles they are related to investing. More specifically related to behavioral finance. After all, we win battle in the mind first then on the ground. Having the right mindset will ensure that one stays on the right track. However, we never discussed why should... Continue Reading →

If you are allowed to choose one between high frequency of success with low magnitudes and low frequency of success with high magnitudes. What will you choose? We like to win more and frequency matters a lot for us. We may end up choosing the first option. However, we ignored the magnitude part. It is... Continue Reading →

Image Credit It is a prototypical example for the enthusiast of game theory. Now let's deep dive into the dilemma. Two prisoners Alice and Bob are accused for committing a crime let say, for robbing a bank. Both are interrogated separately and given the following deal. If one of them confesses and the other one... Continue Reading →

Image Credit Previously we discussed about moats. The technology companies doesn't have long lasting competitive advantage as the their shell life is very low. For instance, Google has to venture into Google Chrome, Google Home, Android and many more products just to ensure people still use Google search. Advertising is the main revenue model for... Continue Reading →

Image Credit We will be talking about the story of the most fascinating stock of this year. The stock was relisted on 27th January, 2020 just with a price of 16.5 and after around just 5 months trading at 1176 on Friday. Its peak value for the year is 1519.65, that's approx 91 times the... Continue Reading →

Image Credit If you are a basketball fan you can easily relate to the title and the above picture. From the basketball world, I am only aware of the legendary player Michael Jordan. In 2003, Kobe Bryant was in the top of the world winning game after game for his team Los Angeles Lakers. However,... Continue Reading →

Image Credit The theory states that the more cash that builds up in the treasury of an organization, the greater the pressure to piss it away. After all, it is not simple to hold on to the cash. J Hugh Liedtke, former CEO of Pennzoil, believed that “companies should pay out cash so the managers wouldn’t... Continue Reading →

Image Credit Mean Reversion is a finance theory which suggests that the price of an asset will eventually return to its average level of entire dataset. When the price of a stock is below its average price, the buyers consider it attractive for purchase and anticipate the prices to rise in the short run. On... Continue Reading →

Image Credit The companies which have the capacity to suffer and sustain are miracles. For instance, Amazon and GEICO. Amazon has been not focusing in its profitability as much as it focuses on becoming the market leader or the willingness to fail more. GEICO, an insurance company lost $250 dollars on every policy it sold... Continue Reading →

The article is in continuation with this one. Request you to read the first part before you deep diver into the traits. Image Credit Here you go with the seven traits: Trait #1: The ability to buy when others are panicking and sell stocks while others are euphoric. It reminds me of the wonderful quote... Continue Reading →