Understanding Safe Withdrawal Rate

February 2, 2017 Vijay Sankar 0

Since it’s the beginning of a new year, everywhere I see only resolutions, plans, outlooks and so on. This is also that period during which financial media cover lot of investment strategies for 2017. While reading one of such personal finance article, came across a term called Safe Withdrawal Rate (SWR) What is Safe Withdrawal Rate? Most of the personal finance literature focus on where to invest and how to build an optimal portfolio. Safe Withdrawal Rate (SWR) is common term used from retirement planning context. Put in simple terms, Safe Withdrawal Rate is nothing but a percentage of your […..]

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Reminiscence of Dow Theory

January 17, 2017 Vijay Sankar 0

If you watch any business channels like CNBC, ET Now etc. or read financial newspapers; I am sure you would have stumbled upon stock market analysts discussing about which stock is going to skyrocket, which is going tumble and so on. If you go a level deeper, you would have heard jargons like support, resistances, momentum, and so on. I think, these analysis are addictive especially if you like numbers, ratios and charts. Since I had burnt lot of cash and time on this in the past, I have been keeping away a bit from this. However after seeing the tenth […..]

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Dog Stocks based on S&P BSE Sensex Index

January 6, 2017 Vijay Sankar 0

Yesterday, we discussed about a stock picking strategy called dogs of dow or dog stocks (understanding dog stocks). Today, I decided to extend this for S&P Sensex index. As mentioned in the post, dog stocks are the top ten in the index. If we just look at the highest dividend yield, most of them are Navaratna companies. Dogs of Sensex Index The Dog stocks of S&P BSE Sensex are Coal India, O N G C, ITC, Infosys, Hero Motocorp, Bajaj Auto, Tata Steel, NTPC,ICICI Bank, and Hind. Unilever We can either calaculate P/E ratios from company’s performance reports or from […..]

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Understanding Dog Stocks

January 5, 2017 Vijay Sankar 1

While browsing through some ET articles, came across this article on Dog Stocks. This is the first time I heard that term. Upon further noodling this was the learning for the day 🙂 What are Dog Stocks? Dog stocks, originally called Dogs of the Dow is a stock picking principle which follows the idea of selecting ten Dow Jones’ stocks with dividend component as the highest fraction of their price. It was first popularized by Michael Higgins. The key component is that the selection needs to happen on an annual basis. In his original proposition, Higgins selects 10 out of […..]