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. […]
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The Double-Trouble with Market Timing
Posted on 16. Jan, 2012 by TheFreeInvestor.
It is difficult enough to be right about timing the market once that the thought of being right about timing the market twice in a short span seems like a herculean task. Consider this — if you would have sold all your stock holdings in mid 2008 and bought them back in March 2009, not […]
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Opportunistic Buying in Volatile Markets
Posted on 31. Dec, 2011 by TheFreeInvestor.
The market closing on the last trading day of 2011 turned out to be a nail-biter. S&P 500 closed at 1257.60, that is 0.04 less that closing of last trading day on 2010. No, that is not a typo or percentage. S&P 500 actually closed 0.04 points away from the closing of last year ! […]
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Merry Christmas !
Posted on 24. Dec, 2011 by TheFreeInvestor.
Merry Christmas everyone ! It has been a wild year for individual stock investors. Especially for last 2 quarters, the entire markets has been moving in lock-step in response to macro news — European sovereign crisis being the latest market mover. With all the volatility and heartburn through out the year, the S&P is hovering near the […]
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LMIJ #3: Starbucks (SBUX): Investing in Lifestyle Brands
Posted on 09. Dec, 2011 by TheFreeInvestor.
This is my third post in the Lessons from My Investing Journey (LMIJ) series. Here is the link to the previous posts in the series. This is a story of one of my favorite long-term investments in lifestyle brands category. Premium Lifestyle Brand with an Addictive Product I have been an avid drinker of Starbucks (SBUX) coffee for almost […]
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