Book of Wise Investors

When you invest in anything other than the savings accounts and fixed deposits, the annual returns usually changes from positive to negative from year to year. To measure the success of any investment strategy over the years or some other time periods chosen, one will need to measure the average annual return (or other time periods), and see of it is a significant positive number to decide whether the strategy is working well as expected. However, due to how the annual return is calculate in the first place, one cannot simply find out what is the average annual return from…

When you invest, you want returns. However, there are many ways to measure performance and since investing in mutual funds is what the majority of us have to do in order to achieve financial freedoms or any other goals, it is important to learn how to measure performance. Most people measure fund performance by just simply looking at its historical returns. The rationale behind it is simple, if a fund is unable to achieve satisfactory returns in the past, what makes us think that it is going to do so in the future.

However, by basing your decisions on which…

Having different perspectives to a problem situation will result in better solutions surfacing. In other words, using multiple mental models to view the same problem situation. This is true in medicine as much as in equities investing also. Fundamental and technical investing may well be of different schools of thoughts but they actually got no conflicts.

Fundamental analysis involves looking over and analyzing the company three types of financial statements and business models while technical analysis is more towards observing and detecting price patterns and trends and developing strategies to exploit them. No amount of candlestick…