International Business News: Charles Munger, who died on Tuesday, went from working for Warren Buffett's grandfather for 20 cents an hour during the Great Depression to spending m
In both cricket and investing, the tricky part is feeling like you re in charge when, in reality, some things are beyond your control. Cricket teams make plans, but things like weather and how well the opponent plays can change everything. Similarly, investors can study stocks, but the ups and downs of the market, global events, and economic changes are not something they can control.
Value investing is similar to being a wise shopper in the stock market. It is a strategic approach where you look out for stocks that seem on sale, trading at prices lower than what they are genuinely worth. This true worth is the intrinsic value of a stock . The key idea is to pick stocks that the market has, in a way, overlooked or underestimated. This results in a margin of safety (the difference between a stock s true or intrinsic value and its current market price).
Your fund portfolio should mirror your financial plan and optimized asset allocation. Stick to this, and you re likely to fare well without overcomplicating your portfolio
"We are positive on interest rate-sensitive sectors from a 12-month perspective as interest rates seem to be peaking. NBFCs, banks, and real estate are likely to perform well in a falling interest-rate environment. Secondly, the defence sector could continue to be in the spotlight, considering a projected 2-3% spending as a percentage of GDP over the next decade."