How much would you pay for a stalk of tulip? If you haven’t heard of the Tulip Craze in the 17th century, it might surprise you how much people were willing to pay for a stalk of tulip. Courtesy of commons.wikimedia.org The Tulip Craze takes us back to 17th century Holland when speculators were interested … Continue reading Lessons from 17th Century Tulipomania
One of Warren Buffett’s investment rules is to only invest in companies with an economic moat. So what exactly is an economic moat? “In business, I look for economic castles protected by unbreachable ‘moats’.” - Warren Buffett Simply put, the metaphoric “castles” are companies and the moats around those castles are special qualities that they … Continue reading Investing in Companies with Economic Moats can give you an Edge
For centuries, capital markets have tide over multiple boom and bust cycles. While each market cycle can be attributed to different events in the economy (i.e. Black Monday, Black Friday, dotcom bubble, sub-prime mortgage crisis), there are inherently two emotions that move markets in either direction - FEAR & GREED! The emotions of market participants … Continue reading What to do in a market correction?
The marketplace is nothing but a reflection of “collective wisdom” on the prospects of the underlying assets that make up the market. As the market is always forward-looking the economy, stock prices at any point in time would have already discounted (factored in) the prospects (i.e. good earnings, revenue growth, sector expansion) of a stock. … Continue reading What moves the market?
In this article, we discuss the various strategies central banks around the world use to control the monetary system we operate in.