Wednesday, November 4, 2015

Value Investor Manifesto from SafalNiveshak

Parag Parikh, the value investment guru wrote books on behavior finance. This is an economics combine with psychology of human behavior. It is the study of psychology and finance. The investors often fall prey to their own and sometimes others' mistakes due to the use of emotions in financial decision-making. This is repeated phenomenon which give rise to genesis of new branch of finance known as Behavioral Finance. Behavioral Finance is the study of how people in general and investors in particular make common errors in their financial decision making due to their emotions.

Behavioral Finance is not a remedy to master the art of stock picking. It does not involve models or formulae to help us pick the right stocks at the right price. One needs to understand that there can never be any sure shot way to make money either on the stock markets or anywhere else. Behavioral Finance will only provide us a framework to try and outperform the market by being aware of our emotions as well as those of others and using this information to our advantage. We would like to follow the greatest investor of all times, Warren Buffett, who has said that "Rule no 1 is - Don't lose money and Rule no 2 is - Don't forget rule no 1". 

PPFAS is giving tutorials for free on Behavirol Finance, click here to learn.

SafalNiveshak, who are great propagators of value investment, whose tagline is Value investment for smart people, has come up with The Investor’s Manifesto.