In our last offering in this series, we discussed how factors like scales of operations, process advantages and location of operations can prove to be effective moats. Now we move on to next important set of factors- rare resources, stringent entry norms and customer advantages. Read on to find out how these three create formidable entry barriers for competition and ensure long term competitve advanteb for the company,Read More
Indian markets were on a song since June 2016. Most stocks had appreciated by 30-50% from the lows of Feb 2016. While people knew that valuations were getting stretched, nothing seemed to go wrong. Markets proved to be resilient and green shoots in economy were visible. Then Brexit happened. Markets took it well and then Trump won- as if two black swan events weren't enough...the lndian government decided to fire a bazooka of demonetisation and suddenly markets turned jittery. Was there a way to get out of markets before the carnage? Does the market give some signs that indicate it is overheated? Following are the few unmistakable signs that investors can definitely remember next time.Read More
Availability bias affects almost every aspect of our lives especially our financial decisions. It makes us forget that there is much more to what we think we know.IN this article we look at what Availability bias is, how it affects our investment decisions and what we can do to eliminate its effects. Read on..Read More
Moat refers to the dug up water filled area that surrounded medieval forts and castles to keep the enemy at bay. In the modern economic term, the spirit of this word remains the same .An economic moat is the competitive advantage an entity has which keeps it safe from competition over a sustainable period of time. In this article we reveal four false moats that mislead investors in thinking that a company has a competitive advantage only to be proved wrong.Read More
Psychology plays a major role in Investing. It is our constant endeavour to figure out the pitfalls in the cognitive process of investment process that may lead to not so wise decisions. Hao effect is just one of the many biases that influence our decision making process and it is important to recognise the threats posed by this bias. In this article we give you a low down on what Halo effect is all about, how it effects our decisions and what are its implications in stock investments.Read More
Who doesn't want multibaggers in his/her portfolio? We all look for that next Eicher or Page Industries. In this article, we argue that your relentless focus on finding the next multibagger may actually be sabotaging your portfolio returns. We call this approach a problem and proceed to suggest an alternative that is far more superior to help you achieve investment success.