In 1995, two behavioural economists — Shlomo Benartzi and Richard Thaler — published a paper that won Thaler the 2017 Nobel Memorial Prize in Economic Sciences. Its title was deceptively simple: “Myopic Loss Aversion and the Equity Premium Puzzle”. The
Table of Contents Toggle Why this one ratio explains more about a company’s survival odds than any other line on the balance sheet What is Net Debt to EBITDA? A plain-English definition The formula — and the four moving pieces
Open a brokerage statement in India today and you will see one earnings number that the system insists is “yours” — the dividend credit. Everything else — the buybacks, the retained profits, the capex funded out of internal accruals, the
One paragraph summary. Daniel Ellsberg published a four-page paradox in 1961 that did to Leonard Savage’s expected-utility theory what Kahneman and Tversky would later do to rational-choice theory. Given a choice between an urn whose composition is known and one
The number of registered investors on the National Stock Exchange has multiplied from roughly 3 crore in 2020 to more than 11 crore by early 2026 — a once-in-a-generation broadening of equity ownership in India. Yet the same SEBI study
If you have ever stared at a list of forty Indian stocks in your demat and felt a low-grade panic — “what exactly am I holding, and what should I expect each one to do?” — then you are exactly
An investor in Mumbai who buys only Mumbai-listed equities, who concentrates 18% of his portfolio in his employer’s shares, who has never opened a Liberalised Remittance Scheme account, and who has zero exposure to the United States, Europe, Japan, or
Among India’s 11 crore registered equity investors as of early 2026, fewer than one in fifty can write down Benjamin Graham’s square-root intrinsic-value formula from memory. That single statistic explains why so much of the ₹1.81 lakh crore of cumulative
If you have ever bought a stock within ten minutes of a celebrity portfolio manager naming it on a business-news channel, you have not made a research-driven decision. You have obeyed an authority figure. The instinct is so deep, so
If you opened a Systematic Investment Plan three years ago promising yourself you would not touch it for ten years, and yet you stopped it in 22 months, the explanation is not weakness of character. It is a specific, measurable,
The Securities and Exchange Board of India introduced a quiet but seismic governance reform on 1 April 2022 through an amendment to the Listing Obligations and Disclosure Requirements (LODR) Regulations. Regulation 17(1B) was made permanent for the top 500 listed
Every Indian investor who has ever tried to value a stock has at some point reached for a DCF spreadsheet, plugged in growth rates and terminal multiples, watched the answer wobble by 40% when the discount rate moved 100 basis
Why do investors who paid ₹500 for a stock that has fallen to ₹200 add more capital at ₹200 — not because the thesis improved, but because selling would force them to confront the painful belief that they were wrong?
Hook. The National Stock Exchange now hosts more than 11 crore unique investors, up from barely 3 crore at the start of this decade — the steepest retail participation surge any major market has ever recorded. And yet a 2024
Ask a fund manager what edge he has over the index, and you will hear the usual answers — better research, deeper models, faster information. Ask the same question to a private investor with a steady job and a 25-year