Saturday, January 23, 2016

Overcoming Behavioral Mistakes

SN: What tricks do you use to save yourself from behavioural biases? What are the most common behavioural mistakes you make?
HH: Most mistakes in investment stem from lack of knowledge. When one is walking in the dark, other senses become heightened. Similarly, when one is operating in the field of investments and one does not know what one is doing, the basic human survival instincts (being with the crowd – herd mentality, avoiding danger – loss aversion, etc.) kick in. These instincts sometimes may mislead one in stock markets which is a massive melting pot of human emotions.
Many advocate changing behavioural responses. I think if you try to do that you are up against thousands of years of evolutionary survival strategies. Instead, focusing energies on accumulating knowledge is a more reasonable task.


Sunday, November 30, 2014

Ten Kings couple of doubts

I have read Ashok Banker’s Ten kings today. The story is interesting it shows one day battle between King Suda and Ten Kings.
Just couple of things needs clarification
1.  There was a scene between Vashista and Vishwamithra, wherein Vishwamithra advices Vashishta to stop a project, which Vashishta does not accept. But as they were speaking the ten kings were already trying to execute a coup. So it seems that whatever dialogue had happened between Vashishta and Vishwamithra had no significance since coup was to happen anyway. So why was the scene created?

2. How was the queen asked to play her role in the coup and why did she did what she did

Sunday, March 2, 2014

Venkataramana Bhagvathar

Saint Thyagaraja intuitively knew that his end was nearing. He called for his devoted disciple Venkataramana Bhagvathar and entrusted to him the idol of Sri Ram, bundles of palm leaves containing his kritis and tambura.
Venkataramana Bhagvathar knew the importance of the articles given to him and he preserved it with great care. All the articles given to Venkataramana Bhagvathar by Saint Thyagaraja are preserved till date! The palm leaves collection preserved by Venkataramana Bhagvathar, later came to be known as ‘Walajapet Collections’, it attracted the attention of scholars, musicians for study.
Venkataramana Bhagvathar was associated with Saint Thyagaraja for over a quarter of century and he had documented the biography of Thyagaraja. Venkataramana Bhagvathar had himself written hundreds of kritis, one of them ‘Sri Thyagarajashtakam’ which is being rendered at the end of all concerts during Thyagaraja Music Festivals.  He also translated Thyagaraja’s opera ‘Nowka Charitam’ from Telugu to Sanskrit.
Venkataramana Bhagvathar had a chain of disciples which was later popularly known as ‘Walajapet Chain Disciples’. Venkataramana Bhagvathar’s school of sishya parampara was very instrumental in the propagation of Saint Thyagaraja’s kritis.
Venkataramana Bhagvathar.jpg

Tuesday, February 18, 2014

Bhai Jeewan Singh

Bhai Jeewan Singh rode the horse in full speed, he had to cover 300 Km from Delhi to reach Anandpur Sahib. As the teenager travelled in lightning speed his thought went back in time when a group of Kashmir Pandits had an audience with Guru Teg Bahadur.
Aurangazeb decided to convert his kingdom to be a full Islamic kingdom. Some of the Kashmiri Pandits came to Guru Teg Bahadur and informed them about their predicaments.
Guru Teg Bahadur instructed the Pandits to tell the Mughals that the Pandits would be ready to convert if Teg Bahadur gets converted to Islam. Bhai Jeewan Singh, who was the witness of this incident, did not know at that time that Guru Teg Bahadur was getting ready to sacrifice his life for the Hindus!
The Mughals arrested Guru Teg Bahadur and also their disciples including Bhai Jeewan Singh.  Guru Teg Bahadur wrote 57 Slokas and asked Bhai Jeewan Singh to take it to Guru Teg Bahadur’s son Gobind Rai. Aurangazeb’s daughter  Bibi Jabunisha helped  Bhai Jeewan Singh escape the jail.
Bhai Jeewan Singh gave Gobind Rai the slokas and informed him of the tortures that Guru Teg Bahadur had to undergo.
When it became clear that Teg Bahadur would sacrifice his life, Gobind Rai called congregation of devotes and commanded as to who would bring back the body of Guru Teg Bahadur from Delhi after his martyrdom. There was pin drop silence in the congregation and nobody could muster courage to undertake such a challenge. Bhai Jeewan Singh came forward and said he would accomplish the task.
Bhai Jeewan Singh reached Anandpur Sahib with the beheaded corpse  of Guru Teg Bahadur and Gobind Rai performed the final rites on 16th November 1675.
After the ritual was over Gobind Rai asked Bhai Jeewan Singh,  “Please tell me how you brought my father’s corpse. I heard that Aurangazeb gave an order that whoever tries to take the corpse would be put to death. How did you accomplish this task?”
Bhai Jeevan Singh said, “You know how similar your father and my father, Bhai Sada Nand were”
Gobind Rai’s heart skipped a beat!
Bhai Jeevan Singh said, “My father gave an order..”
Gobind Rai exclaimed, “What your father sacrificed his life and you beheaded your own father!!”
Bhai Jeevan Singh replied, “Yes! I replaced the corpse of gurudev with that of my father. So the Mughals will not know that we are taking the Gurudev’s corpse”
This incident made an indelible impression on Gobind Rai who went on to become Guru Gobind Singh, the 10th Guru of Sikhs. Guru Gobind Singh formed the Khalsa Order in 1699.
Bhai Jeevan Singh participated in at least 14 wars alongside with Guru Gobind Singh. In the year 1704, when Aurangazeb violated the ceasefire and attacked Chamkaur Sahib, Bhai Jeevan Singh and fellow disciples pleaded Guru Gobind Singh to escape. Bhai Jeevan Singh attained martydom while fighting the invaliding Mughal in Chamkaur.

Sunday, February 2, 2014

Pingali Venkaiah

“It hurts me deeply that we host the union jack flag, in Congress Maha Sabha! It puzzles me that we have not yet thought about a national flag for India”, thought Pingalai Venkaiah, the year was 1906.

Venkaiah decided to study flags of nations and to design a flag for India.

In 1916, Venkaiah published a book “A National Flag for India” in which he put forth 30 models for National Flag.

During the Indian National Congress held at Vijayawada, in April 1921, Gandhi asked Pingali Venkaiah to draw a National Flag. Venkaiah completed the design in less than three hours.

This flag evolved further in 1931 and it was officially adopted by Congress

Venkaiah’s original thinking was not restricted to Flags alone but also to many different streams. When Gandhi started the ‘Kadhi’ movement, Venkaiah decided to experiment with different varieties of cotton corps. He zeroed in on Cambodian Cotton and created a hybrid Indian variety. The British government recognized his research and conferred him honorary membership of the Royal Agricultural Society of Britain. Pingali came to be known as Patti (‘Cotton’) Venkayya.

This versatile man was also a prolific writer, a Japanese lecturer and a geophysicist!

Tuesday, January 21, 2014

Share investment calculate CAGR

10% stop loss looks like trading. For Shares we need to have the power of compounding and we should not be tempted to sell in every dip.
But we should still have stop loss. A 15% CAGR stop loss, after a wait of 2 years looks ideal.
All portfolio tracker gives absolute return also many doesn’t take into account the dividends.
We can use XIRR to accurately calculate the CAGR. Invested amount should be entered as a negative number, dividends as positive  and if you want to know the CAGR for today then enter today’s price as the last entry!
With respect to share market, XIRR will not take into account bonus and split, but if we can factor it accordingly by looking at the invested amount and not the number of shares. Then it will be easy.
XIRR is very effective to calculate CAGR especially in shares where the investment date, dividend date and exit date will never be periodic.

Saturday, September 7, 2013

Virchand Raghavji Gandhi

“Swami Vivekananda!”
“Yep this is a  pic from the First World’s parliament of religion held in 1893 at Chicago. Identify ‘the other Indian’”
“Other Indian! It’s a news to me that there was another Indian representation. Let me see ….is that the person to the left of Swamu Vivekananda”
“That’s Anagarika Dharmapala aka Hewivitarne Dharmapala, a Sri Lankan who represented ‘Southern Buddhism’”
“Then it should the first left, the man with the turban”
“Yes, Virchand Raghavji Gandhi, he represented Jainism in the World’s Parliament of Religion”
“Tell me more about him”
“Virchand Raghavji Gandhi became honorary Secretary of the Jain Association of India, when he was just 21! But his knowledge was not restricted to Jainism. He was also a student of Bhuddism, Vedanta Philosophy, Christianity. He knew 14 languages! He also translated a French book to English, ‘An Unknown Life of Jesus Christ’”
“Looks to be a good scholar”
“Not only scholar, he was also a patriot.  During the 1897 Indian Famine,  Virchand Raghavji Gandhi was in US, he collected and send money and grains to India for famine relief. He also participated in Indian National Congress”
“V.R. Gandhi and Congress! Is there any connection between him and M.K. Gandhi”
“Virchand Raghavji Gandhi is a Barrister, so is M.K. Gandhi. They both were friends and it seems some US people mistook M.K.Gandhi as V.R. Gandhi. Here is a letter from M.K.Gandhi to Miss Emelia Mac Bean of Chicago dated June 13, 1931”
Madam, I have your letter for which I thank you. You are giving me credit of which I am wholly undeserving. You are thinking of another Mr. Gandhi my name-sake but in no way related to me. He and I were, however, friends and lived together for some time. You will be sorry to hear that he died many years ago, leaving an only son. It was he who visited America and made many friends. I have never had the privilege of visiting your continent.
“Hmm… interesting tell me about the friendship between Swami Vivekananda and V.R. Gandhi”
“They had good respect for each other. Remember that they travelled to US at a time when it was considered a taboo to sail in ocean. So there was some opposition to their US visit in India. Here is a 1894 letter by Swami Vivekananda to Haridas Viharidas Desai, Diwan of Junagadh”
Now here is Virchand Gandhi, the Jain whom you knew well in Bombay. This man never takes anything but mere vegetables even in this terribly cold climate and tooth and nail tries to defend his countrymen and the religion. The people of this country like him very well. But what are they doing who sent him over? They are trying to outcast him.
“Any other similarities”
“Like Swami Vivekananda, V.R.Gandhi also spent time in US and London and gave lectures, they both were very proud Indians and were patriotic. Both had a prophetic vision that India would attain Independence soon. V.R.Gandhi insisted that independence needs to be attained in peaceful non-violent ways and..”
“And what?”
“Like Vivekananda, V.R. Gandhi died young. He was just 37”