DotCom deadpool

Came across this article in Mint titled Dotcom deadpool returns as India’s start-up boom turns to bust

We have covered this topic in detail in the book as well as in many of the blog posts. A small list of these blogs is as under for quick reference:

It is always interesting

Here is an excerpt from the book:

Throwing money at every start-up without proper due diligence would look silly years later. Sachin Tendulkar came from Shardashram Vidyamandir School, but that does not mean that every Shardashram pupil would be picked up by the indian cricket team.

#RidingTheRollerCoaster – 22

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History repeats …

Look at this interesting article about Indian start-up boom of recent times:

Dotcom deadpool returns as India’s start-up boom turns to bust

Sir John Templeton has famously said, “The four most dangerous words in investing are: ‘This time it’s different’.”

#RidingTheRollerCoaster – 225

 

Lessons we forget? Or we refuse to learn?

Couple of months back, we wrote about how past performance is (mis)represented by those who write in mass media. Very often, a single period data is taken to arrive at a conclusion. One feels sad for the readers.

Here is an article I had written in Mint in March 2016. Just a day later, a leading financial daily, Economic Times repeated the mistake I had referred to. I wrote a blog post about it, too. A couple of days ago, once again I came a cross a similar piece of reporting.

The reporter seems only to be interested in sensationalisation, for which he probably imagined a story and then found the data to justify. The problem with such reports are that they only does disservice to even the customers (readers, in this case) of the newspaper this reporter is representing. This is irresponsible behaviour.

It also appears the reporters do not want to learn. My book’s subtitle aptly captures a particular behaviour of most – “Lessons … we repeatedly forget.” In this case, it is more like “Lessons … we refuse to learn”.

Upton Sinclair has wonderfully said, It is difficult to get a man to understand something when his salary depends upon his not understanding it.God bless the readers!

 

#RidingTheRollerCoaster – 170

Understanding the line “past performance may or may not be sustained”

In all mutual fund communications regarding past performance, we read, “Past performance may or may not be sustained in future”. Why?

Read my article published in Mint to understand this.

Also please consider what would happen if one has only seen a single period performance at the top or bottom of a market cycle.

#RidingTheRollerCoaster – 97