The purpose of this site is to give private investors basic information about shares selection and other related topics. Contrary to the impression that investment books of the "how to make a million" variety and those written in "Noddy and Big Ears" style give, there is no guaranteed or easy way to make money by investing in shares. I introduce each topic with my thoughts and then give numerous quotes on the topic from investors who have the best long term, public track records, and also from highly regarded academics regarding the topic. In selecting a share to buy, the investor should perform three key evaluations:
All of these are very difficult to do but, the more research you do, the more you increase your probability of not losing money on bad investments. I have described some of the considerations when doing each of these evaluations in the next three topics. You can access these by clicking on the links on the left sidebar.
I have also written about various topics that would interest private investors. These include things like charting, index trackers, contrarian investing, etc. Click on the links on the left sidebar if you are interested in any of these. Finally, most private investors who are investing for the long term can avoid the big risks of trying to outperform the market by investing their savings in index trackers (click on "Index trackers" on the left sidebar) and forgetting about them till they need the money when they retire. The only caveat is not to invest when the market is in bubble mode (click on "Bubbles" on the left sidebar). They would also thereby avoid spending the huge amounts of time required to investigate individual shares and can use the time saved more productively to build their careers and enjoy whatever else they enjoy. The contents of this site are from blogs that I wrote in November 2007 (http://mythoughts-mohan.blogspot.com/2007/11/introduction.html). I had, by then, accumulated more than sufficient wealth to suffice for the rest of my life. I now invest only a small portion of my capital in shares as I see no point in risking the money that I already have for money that I will never need. |