Strategies of the World’s Greatest Investors
Macro Seminar
A report on
Strategies of the world’s greatest Investors
Under the guidance of
Prof. R. K. Sharma
Faculty
Jkshim
Submitted By Nikhil Kumar J. P
2nd year MBA
JKSHIM
On: 11 September 2012
Strategies of the world’s greatest Investors
The everlasting Intelligence
Introduction:
Where do most successful people invest (or where have they in the past) to make money investing over the long term? The answer before the financial crisis was bonds, stocks and real estate. The answer today for the average investor is the same and takes the simple form of bond funds, stock funds and equity real estate funds. In the final analysis, if all three of these investment areas stand poor – we’re likely in a depression and only a lucky few folks or smart speculators will make money investing.
In finance, an investment strategy is a set of rules, behaviours or procedures, designed to guide an investor 's selection of an investment portfolio. Usually the strategy will be designed around the investor 's risk-return trade-off. i.e., some investors will prefer to maximize expected returns by investing in risky assets, others will prefer to minimize risk, but most will select a strategy somewhere in between.
Passive strategies are often used to minimize transaction costs, and active strategies such as market timing are an attempt to maximize returns.
One of the better-known investment strategies is buy and hold. Buy and hold is a long term investment strategy, based on the concept that in the long run equity markets give a good rate of return despite periods of volatility or decline. A purely passive variant of this strategy is indexing, where an investor buys a small proportion of all the shares in a market index such as the S&P 500, or more likely, in a mutual fund called an index fund or an exchange-traded fund (ETF).
This viewpoint also holds the market timing, that one can enter the market on the lows and sells on the highs, does not work for
A report on
Strategies of the world’s greatest Investors
Under the guidance of
Prof. R. K. Sharma
Faculty
Jkshim
Submitted By Nikhil Kumar J. P
2nd year MBA
JKSHIM
On: 11 September 2012
Strategies of the world’s greatest Investors
The everlasting Intelligence
Introduction:
Where do most successful people invest (or where have they in the past) to make money investing over the long term? The answer before the financial crisis was bonds, stocks and real estate. The answer today for the average investor is the same and takes the simple form of bond funds, stock funds and equity real estate funds. In the final analysis, if all three of these investment areas stand poor – we’re likely in a depression and only a lucky few folks or smart speculators will make money investing.
In finance, an investment strategy is a set of rules, behaviours or procedures, designed to guide an investor 's selection of an investment portfolio. Usually the strategy will be designed around the investor 's risk-return trade-off. i.e., some investors will prefer to maximize expected returns by investing in risky assets, others will prefer to minimize risk, but most will select a strategy somewhere in between.
Passive strategies are often used to minimize transaction costs, and active strategies such as market timing are an attempt to maximize returns.
One of the better-known investment strategies is buy and hold. Buy and hold is a long term investment strategy, based on the concept that in the long run equity markets give a good rate of return despite periods of volatility or decline. A purely passive variant of this strategy is indexing, where an investor buys a small proportion of all the shares in a market index such as the S&P 500, or more likely, in a mutual fund called an index fund or an exchange-traded fund (ETF).
This viewpoint also holds the market timing, that one can enter the market on the lows and sells on the highs, does not work for
Bibliography: Internet sources: * www.wikipedia.com * www.investopedia.com * www.valuewalk.com Books and Journals: * Investment analysis and portfolio management, Prasanna Chandra, second edition 2005, Tata McGraw hill publications, page no 636- page 657. * The Warren Buffett way-Investment strategies of the world’s greatest Investor, Robert G.Hagstrom,JF., John wiley&Sons,Inc publications. ---Thank You---