Tag Archives: Philosophy
Posted on 11. Feb, 2012 by TheFreeInvestor.
Though we would like to think that most of the time we are objective and rational investors, behavioral finance has shown that our brain is not so simple. If left unchecked, our conscious and subconscious biases derail us from rational investment analysis. One such illusion or bias is our tendency to anchor on the price we paid for a stock. [...]
Posted on 27. Mar, 2011 by TheFreeInvestor.
You might have heard of “Buy and Hold” approach to investing. In a nutshell, the approach advocates that once we analyze and invest in a stock, we should just hold and own the business for a long time and due to the compounding of returns over time and absence of panic driven trades, you will [...]
Posted on 05. Mar, 2011 by TheFreeInvestor.
Readers of my blog might already know that I am a longterm investor and view my investments as “ownership” of a firm rather than a short term “trade” view (mostly). For most individual investors, I believe, an ownership approach has the best chance to create long term wealth. In that context, the question is how [...]
Posted on 19. Feb, 2011 by TheFreeInvestor.
A lot of people when they think about investing in stocks, they imagine trading stocks. So, let’s try to get the basics cleared up about what I mean when I say “investing” on this site. At a very basic level, there are two distinct ways to profit from the stock market – 1) exploit the [...]
Posted on 06. Dec, 2010 by TheFreeInvestor.
Often we hear from investment professionals that we should be emotionally detached from our investments. If you are a short term investor or a day trader, I guess, that principle makes sense. Though I understand the point that emotional attachment leads to irrational decisions (or delayed decisions), I have a different take on the subject. I [...]