Monday, July 17, 2006

A Problem with Humans...

I have discovered that all human evil comes from this, man's being unable to sit still in a room.
- Pascal

This particular quote even appears in "The Intelligent Investor".

Getting past this thirst for action and unnecessary mental motion is easier said than done. I am in the Strategy Team of a large Business Group and the work can sometimes take 3-4 hours of my time and it requires sitting at one place and concentating on obscure reports that are both voluminous and boring. I have to shut out all thoughts which are potential distracting elements for me and concentrate on my work.

As i said, I am just learning...

What I am Interested in...

Value investing is a style of investment strategy. Followers of this style, known as value investors, generally buy companies whose shares appear underpriced by some forms of fundamental analysis; these may include shares that are trading at, for example, high dividend yields or low price-to-earning or price-to-book ratios. The main proponents of value investing, such as Benjamin Graham and Warren Buffett have argued that the essence of value investing is buying stocks at less than their intrinsic value. The discount of the market price to the intrinsic value is what Benjamin Graham called the "margin of safety". The intrinsic value is the discounted value of all future distributions. However, the future distributions and the appropriate discount rate can only be assumptions. Warren Buffett has taken the value concept even further as his thinking has evolved to where for the last 25 years or so his focus has been on "finding an outstanding company at a sensible price" rather than generic companies at a bargain price.

First Post...

Life is a long drawn out procedure which provides you an opportunity to live foolishly in your youth and wisen up when it's too late to play anymore - Mayank Sharma