by Vidya Kumar | Apr 9, 2024 | Behavioural Finance, Financial Advice, Uncategorized, Vidya Kumar
Hindsight is looking back and understanding a situation or event after it has happened or developed. It involves reviewing what happened and comparing it to plans and expectations. Hindsight is a valuable tool in personal finance. It allows us to assess which...
by Vidya Kumar | Nov 27, 2023 | Behavioural Finance, personal finance, Uncategorized
In a letter to his brother, John Keats, the British poet wrote, “At once it struck me, what quality went to form a Man of Achievement … Negative Capability.” What is Negative Capability? According to Keats, negative capability is “when a man is...
by Vidya Kumar | Sep 8, 2023 | Behavioural Finance, financial planning, Investment, Uncategorized, Vidya Kumar
A pen and a pencil together cost $1.10. The pen costs $1.00 more than the pencil. What’s the price of the pencil? If we had not seen this example before, most of us would be tempted to respond that the pencil costs 10 cents. But if we pause and take a couple of...
by Vidya Kumar | Jun 29, 2023 | Behavioural Finance, Vidya Kumar
Alpha (α) – A measure of performance. The excess return of an investment relative to the return of a benchmark index. Generating alpha or seeking higher returns than the market average is the goal of many investors. Investors use various strategies to get...
by Vidya Kumar | Dec 1, 2015 | Behavioural Finance, Smitha Hari
So how is this relevant in the world of investing? A common example is how investors make their decision to hold or sell a stock based on the past performances. To elaborate, suppose a stock had hit a lifetime high three months earlier due to a bull run in the stock...
by Vidya Kumar | Nov 27, 2015 | Behavioural Finance, Smitha Hari
Executive Summary: While conventional financial concepts give a backing to finance and assumes that one would take logical financial decisions, it has been found that many a time people take irrational decisions in the real world....
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