Zeigarnik Effect on Investing.

I have observed two kinds of investors… one who makes an investment in a financial product and the other who follows a financial plan to investing for fulfilling his long term goals. While both are credible, I have often found that the latter is someone committed to revisiting his investments more often to check how they are doing and also if needed enhancing his investments to make sure his goals are within reach. I have often struggled to explain this phenomenon.. Thanks to Rajesh Setty, Entrepreneur, Author, Speaker & Alchemist (www.rajeshsetty.com) over a call on book writing he beautifully elucidated the concept of Zeigarnik Effect, and voila… I had my moment of EUREKA.. except that I

Till Debt do us Part

Private Equity, Venture investing, Stocks, etc.. all forms of equity investing is sexy to talk.. in fact it is common to hear people talk of 3 figure returns on some of these investments as well. However the fact of the matter is that Equity is a risky asset and the returns are not uniform across the board and all people do not make returns by investing in equity since each one is also reacting to the asset in his own way.. selling when the stocks go down and buying when they go up etc.. However we are all mesmerized by the 3 X returns that someone has made and hope we will also make similar returns. So what is the asset class that has generated the largest pool of returns to the largest gro

Why is investing in Equity so Difficult ?

A year ago a friend recommended YES BANK at a price of Rs 250/-, he was so bullish on the bank and its prospects in the stock market, it seemed a cheap price at the time. Earlier this week the same YES BANK share was considered expensive at Rs 50/- and sought to find refuge at lower levels.Had you invested a year ago.. your investment of Rs 2.50 Lakhs would be down to Rs 0.50 Lakhs. How is it that Rs 250 is cheap and Rs 50/- expensive, for YES BANK within the span of a year ? How does this happen ? Stocks are slaves to earnings and performance, so if the underlying business is performing well and the earnings are growing well, the stock would continue to do well. On the contrary, if

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