Cricketing the art of Investment Part-I

Cricket and Investing are two parallel tracks, that converge vanishing all parallels in between them. Cricket is a game and Investing is serious business-so where is the point of convergence between the two parallels.

Both Cricket and Investing are number games. And in both success is determined by looking beyond numbers.

For e.g. A streaky four, and a neat single. Which is better?

Results indicate that single deliveries have resulted in a strike rate of 400 or 100.
400 if a 4 is scored, 100 if a single is scored. But then, you have to take into account the risk involved. The streaky four could have also resulted in a dismissal.

The same applies in investing. If returns are the only basis of an investment decision, we run the risk of choosing a batsman without going into other issues like pitch conditions, technique, and temperament.

Therefore, an investment decision has to be made based on both qualitative as well as quantitative factors.

For part-II of Cricketing the Art of Investment visit Chennaibest tomorrow.

Source: Sundaram Mutual
www.sundarammutual.com

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