Equitymaster portfolio – Revisited
(Dec 15, 2001)
The Oxford Dictionary’s definition of investment is – the act or process of investing. Now, what is investing? To understand what is ‘Invest’ing – the definition states that – (a) apply or use of money, esp. for profit (b) provide, endue or attribute. There are two vital points to observe from the definitions. Firstly, investing is ‘application’ of money that is hard earned for a profit (not to lose principal) and it encompasses providing or attributing money (in this context it is time frame).
(Special Report)

Equitymaster portfolio – A review
(Dec 15, 2001)
"Disinvestors lose as market falls -- but investors gain" – Warren Buffet in his annual shareholders letter 1997. Before making investment decisions, the importance of asset allocation cannot be understated. Investment avenues, on a broader basis, can be classified as equities, real estate, bonds, mutual funds, gold and fixed deposits. Depending on the risk profile of an investor, i.e. age profile and expected returns, proportion of each category of the total investment would vary. For instance, the risk appetite of a 25 old person would be higher when compared to a 40-year-old working executive. For the former, the equity component is likely to be on the higher side and for the later, the real estate, fixed deposits and cash component would be proportionately higher.
(Special Report)