In our post on changing Stable Investor’s approach, we mentioned that we plan abandoning our existing portfolio (Monk’s Portfolio). We also plan to start a new portfolio named Dead Monk’s Portfolio (DMP). Reason for choosing this name is given in…
Dev Ashish
P/E Ratio, P/BV Ratio & Dividend Yield Analysis of Nifty50 : And how we can benefit from it
In last post, we detailed how we plan to change Stable Investor’s approach in future. This post is first step in that new direction. In this post, we analyze how a little effort on one’s part can help ensure that…
Poker and Stock Markets
Regular readers would be surprised to see the word Poker (a game known for gambling), being used for title of a post on Stable Investor, which is all about stability and anti-speculation. But a further reading would be helpful in understanding…
Warren Buffett’s Letter to shareholders 2012
It’s time of the year when Warren Buffett comes out with his annual letter to shareholders (Letter 2012). As always, it’s full of insights into the mind of Oracle of Omaha. An interesting point (on Value) made by Warren in…
Warren Buffet’s Rule of not losing money
Known for spreading his financial wisdom by simple rules, Warren Buffet gave 2 really simple rules for investment community – So why are these rules important for a Stable Investor? It is because if you lose money on an investment,…
Nifty Dividend Yields – A Long Term Analysis of relation between dividend yields and returns
Dividend Yield is a ratio of dividend paid last year to current market price. A further reading on Dividend Yields can be found here. One of the two metrics used to evaluate over- or under-valuation of markets is Dividend…
Guest Post: Beware of the Anchoring Bias!
Stable Investor’s note: Today’s guest post by Daniel Sparks covers an important topic of Anchoring Bias in investment decisions. The study of how psychology affects our investment decisions is, rightly so, becoming more and more important. It has even been…
How Luck Helped Me Make 700% in Stock Market Crash of 2008
Exactly 4 years ago, i.e. on 21st January 2008, I bought some shares of Ranbaxy. The day is remembered as one of the darkest days for Indian equities as bell-weather Sensex lost 1408 points in a single trading session. This was the…
Read More How Luck Helped Me Make 700% in Stock Market Crash of 2008
Nifty Stocks and PEG Ratios
In our previous post, we saw that Indian markets are presently trading at PEG ratio of 0.97. We arrived at this figure by dividing current P/E of 16.7 by average growth rate (in last 18 years)of 17.1%. For details, please…
Historical Sensex EPS Growth & PEG Ratio
How do market experts predict future index levels? It is done by estimating EPS (Earnings Per Share) of the index and then multiplying it with what they consider a logical multiple (P/E Ratio). In past 18 years, Sensex’s EPS has…
Sensex Annual Returns – 20+ Years Historical Analysis (Updated 2019-2020)
[Updated - January 2019] What have been Sensex annual returns? What have been stock markets annual return given in last 1 year? What have been Sensex returns since inception? What have been Sensex returns in last 20 years? What have…
Read More Sensex Annual Returns – 20+ Years Historical Analysis (Updated 2019-2020)
Dividend Investing in Indian Stocks
A post on The Motley Fool inspired us to write about dividend investing in Indian stocks. They say that if a person plans to have a long-term portfolio of 10 stocks, atleast 3 should be good dividend paying stocks. Companies…
Market Timing Or Disciplined Investing – Which is More Sensible?
If you have read some of the older posts, you would have a fair idea about what Stable Investor is all about. And you will also understand that timing of stock markets is not what this website is interested in. And…
Read More Market Timing Or Disciplined Investing – Which is More Sensible?
PE Ratio of Indian Markets – A Long Term Analysis
Price to Earnings ratio (P/E ratio) is a measure of price paid for a share relative to the profit earned by that share; i.e.You can read more about P/E Ratios here & here.They say that it is best to invest…
Believe Us, You are not Warren Buffett!
Oracle of Omaha, Warren Buffett has been in news lately for tipping his son Howard Buffett to be the new chairman of Berkshire Hathaway (source). By profession, Howard is a farmer. Company’s investment strategy would still be governed by the CEO…