Some Personal Finance Lessons

Investing Rules:-

1)      Invest in equities only that money which you can afford to loose.

2)      Invest for long term in stocks but timing (valuation) is important.

3)      Exit price of a stock should be defined / formulated to cut loses.

4)      Magic formula for happy life:- Expenditure(3)=Earning(1)-Savings(2)

5)      Never invest in structured product. Else try for PPF / FD + equity directly

6)      Only one insurance product is necessary / allowed :- Term plan

7)      Insurance cover should be equal to future educational requirement of child(s) plus requirement of spouse / dependent.

8)      Nobody is expert in predicting the market.

9)      There is nothing called “Law Of Average” in market.

10)  “Buy good companies at fair price than fair company at good price.” Tag line GOOD BUSINESS.

11)  Investing should not deteriorate health – Financial, Physical and Mental.

 

Two Good BIG " Little Books"

Read two "Little Books"
1) Little book on Behavioural Investing - Give BIG insights on behavioural aspect and its impacts. An eye opener and help book for every investor
2) Little book on Value Investing - Give BIG Insights about value investing. Clear and lucid. Help in practicing one of the most preached but less practiced style of investing.

Both the books combined together is a bible in investing.

Six PSUs.... No Its 7

Can have a look at Six PSUs with good cashflow and dividend yield:-

1) Oil India  (Rs 421) 7.13%
2) Coal India (Rs 246) 4.00%
3) Power Finance Corp (Rs 106) 5.68%
4) NMDC (Rs 121) 3.70%
5) ONGC (Rs 251) 3.89%
6) Rural Electrification Ltd (Rs 164) 4.59%


Edit:- Oops i missed the 7th one
7) MOIL (Rs 212) 2.60%

4 Pharma & 1 Bank

With such a tuebulence in the market, can we take a bet on the follwing companies:-

1) J&K Bank   -  Rs 1094
2) Venus remedies - Rs 174
3) Vivimed Labs - Rs 160
4) Marksans Pharma - Rs 7.60
5) Arti Drugs - Rs 199