Mar 26, 2011

Phases of Market Movements and Human Psychology

According to general wisdom, there are these few types of phases in terms of psychology in markets.
This gives the understanding of human behavior/psychology with regard to movements of markets.
Below are the so called phases and their brief explanation,
1.    Optimism
2.    Excitement
3.    Thrill
4.    Euphoria
5.    Anxiety
6.    Denial
7.    Fear
8.    Desperation
9.    Panic
10. Capitulation
11. Despondency
12. Depression
13. Hope
14. Relief
15. Optimism

Mar 24, 2011

Warren Buffet in India and what he said

Warren Buffet, the world renowned investor, on his visit to India talked about various things. Following is summary of his interviews,
Buffett started his visit on 22nd March, 2011 in India.
Buffets’s visit marks the entry of Berkshire Hathaway the holding company of several businesses, insurance being main business; the alliance with Bajaj-Allianze Insurance.
Berkshire India, a majority-owned unit of Berkshire Hathaway Inc. has been incorporated to sell and distribute general insurance products in India through their online distribution portal.
Berkshire India will sell insurance directly to the consumer by utilizing the internet portal (berkshireinsurance. com) and tele-marketing. Initially, the focus will be on Motor Insurance, but the Company will continuously update its business model to meet the needs of the fast evolving Indian insurance sector.
He will also engage with Bill Gates, in a ‘Giving Pledge’ drive, meet Wealthy Indians.

Warren Buffet in India and what he said:
He said, business men should not get tempted away to diversify and run into more businesses because boredom and excess cash. It I better that they focus on their businesses in expanding them.
He also mentioned that now when Berkshire Hathaway is USD200 Bln Company, so they would look for big acquisition than smaller ones. They will think how to get to USD300 or USD400 bln mark.

Mar 9, 2011

All price-rises inevitably end up in bubble, But all price-rises are not bubble

All price rises inevitably end up in bubble. But all price-rises are not bubbles-
            We funnily see reporters like Udayan Mukherji when talking with international economist/experts and such other market participants and serious-facedly talking about bull-run eventually turning up into a bubble or ‘possibly’ ending up in bubble. And the interviewee also respecting his answer generally responds into affirmation. And many times using diplomatic languages in even talking about the most obvious thing.
            Many times we are fed up with the ‘dramas’ of the business tv channels reporters. But as we have mentioned in our earlier articles, that they poor guys have to ‘fill the airtime’.
            After all they are not paid to teach the investors or given salary out of SEBI’s investor protection fund! May be SEBI should think of starting investor protection tv channels! Or may be not!

Let’s come to point.
            We want to talk about the