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basant
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Joined: 01/Jan/2006
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   Posted: 20/Apr/2011 at 4:38pm |
Yes, it does if you look ayt it it is 2pc of your portfolio add 6 pc inflation so a return of 8% will keep you ok with the real value of investments.
Originally posted by ramsey123
Originally posted by basant
If you want to compeltely live off your investing you should wait till your investments become 50 times your basic annual expense.
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Does this take into account inflation considering a 15-20 year horizon? |
Yes, that is the argument plus you can add more even if the stock moves up from your last purchase price.
Originally posted by Buffet Glb
Finally, if you have a good business that you feel you have missed earlier, the same stock is still worth purchasing later as well with long term perspective in mind.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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ramsey123
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Joined: 16/Sep/2010
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Posted: 20/Apr/2011 at 8:01pm |
Originally posted by basant
Yes, it does if you look ayt it it is 2pc of your portfolio add 6 pc inflation so a return of 8% will keep you ok with the real value of investments.
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Basantji, thanks indeed for a great formula in that case.
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MR TED
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Joined: 26/Jul/2010
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Posts: 336
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Posted: 20/Apr/2011 at 12:29pm |
Originally posted by basant
Convictions change with earnings, execution of business plans and capital spending habits of the management so for some companies the conviction has increased whereas for the others it has deteriorated.
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Thanks Basantji. An interesting point you have made here. This makes me think that as we maintain and monitor the percentage returns of TED 11 stocks, we should also monitor the Conviction levels, based on the parameters stated by you above, say once every quarter. Like Conviction increased or decreased or at same level. Probably all start with 0 points (initial conviction), then for every positive action by the company we add 1 and subtract 1 for every not so good activity. This Conviction Scorecard will solve the problems of all newbies who keep asking whether TED 11 stocks are still a good buy 
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ash7979
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Joined: 19/May/2010
Location: India
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Posts: 324
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Posted: 20/Apr/2011 at 10:16am |
Originally posted by MR TED
Originally posted by basant
Convictions change with earnings, execution of business plans and capital spending habits of the management so for some companies the conviction has increased whereas for the others it has deteriorated.
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Thanks Basantji. An interesting point you have made here.
This makes me think that as we maintain and monitor the percentage returns of TED 11 stocks, we should also monitor the Conviction levels, based on the parameters stated by you above, say once every quarter.
Like Conviction increased or decreased or at same level. Probably all start with 0 points (initial conviction), then for every positive action by the company we add 1 and subtract 1 for every not so good activity.
This Conviction Scorecard will solve the problems of all newbies who keep asking whether TED 11 stocks are still a good buy
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If this is So Simple (Keeping a conviction scoreboard on TED) then I would say we must do this, this will help immensely to all newbies on TED (Including me:))....Anyway thanks to Basantji & all senior ppls here for making TED syuch a wonderful place to be in...
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Fear can hold you prisoner. Hope can set you free....
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MR TED
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Joined: 26/Jul/2010
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Posts: 336
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Posted: 21/Apr/2011 at 12:42pm |
Originally posted by ash7979
Originally posted by MR TED
Originally posted by basant
Convictions change with earnings, execution of business plans and capital spending habits of the management so for some companies the conviction has increased whereas for the others it has deteriorated.
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Thanks Basantji. An interesting point you have made here.
This makes me think that as we maintain and monitor the percentage returns of TED 11 stocks, we should also monitor the Conviction levels, based on the parameters stated by you above, say once every quarter.
Like Conviction increased or decreased or at same level. Probably all start with 0 points (initial conviction), then for every positive action by the company we add 1 and subtract 1 for every not so good activity.
This Conviction Scorecard will solve the problems of all newbies who keep asking whether TED 11 stocks are still a good buy
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If this is So Simple (Keeping a conviction scoreboard on TED) then I would say we must do this, this will help immensely to all newbies on TED (Including me:))....Anyway thanks to Basantji & all senior ppls here for making TED syuch a wonderful place to be in...
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Conviction is intangible and comes from multiple factors. However, we can try to make it tangible for benefit of all. More so, for the reason that we want to hold on to our earlier ideas. I assume that stocks in TED 11 must be closely monitored by many people on this forum, because they own them. Any one can cite the events and actions of the companies, and Basantji can decide whether it is a +1 or -1 or NIL effect on existing conviction level of that stock
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breeze
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Joined: 24/Apr/2011
Location: United States
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Posts: 124
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Posted: 24/Apr/2011 at 9:07pm |
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Very well said. Thanks for your teachings!
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subu76
Senior Member
Joined: 25/Feb/2008
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Posts: 5709
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Posted: 30/Apr/2011 at 8:55pm |
Originally posted by rosicrucian
Though wipro,Infy stories are often recited again and again, but one must not forget that in 1981 it required guts to buy such company.
wipro was oil and soap companay(as investor knew it that time), and infy was unheard.
who had ever thought in 1991 india shall be liberized?
in 94, even employes of Infy were sceptical about the co. and ESOP was not fully subscribed.
Even Ashok Arora ,who was the best coder amongst all Infy cofounders,left the company in 1989 when Infy was about to collapse.
That time was when KSA in USA shut the shop.
Arora sold his shares for 25 lakhs to other promoters, which would have been turned to billions, if he had not.
For 1 infosys there were 10 companies which literally wiped the floor with investors.
When insiders did not have faith in the company how one can expect common man to have faith in that company(at that time)?
similarly with zicom, the was about to shut and all of a sudden 9:11 happens and the company just got a powerful shot in the arm.
what I want to say , what pays is conviction,and if not conviction then destiny.
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The points are well taken. I'd say part of the reason why ESOPs were not fully subscribed was because of lack of any known ESOP stock market success stories at that time. (Unlike in California which had seen employees getting super rich from the stocks of companies like Netscape) In 1995 when i remember Infy would hire about 60-70 people from various engineering colleges......that itself should have given a hint about exploding business opportunities... Offcourse, in hindsight it all looks very easy
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jigneshk
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Joined: 24/Jul/2010
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Posts: 31
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Posted: 08/May/2011 at 2:50pm |
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subu76,
You have made good points and I totally agree. For 1 Infy we don't know how many companies vanished. I would think original and think what gives me success rather than become a sheep and follow textbook or successful investors. Friend (aged 32) who made 50 times return in 5 years has till date not read a single book on WB/PL etc :-).
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