Prashant Vaishampayan

Prashant Vaishampayan is the founder and CEO of Asset Multiplier. He is focused on managing own portfolio by applying value investing principles. His sectors of interest are pharmaceutical, agrochemicals, speciality chemicals, auto and components, banks and IT services. He is registered as a research analyst with SEBI and have launched a subscription-based website giving fundamental research based recommendation to individual investors. His team carries out equity research on contract basis for buy and sell side in India and internationally.

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Are you still playing by the old rules in Investing?

In this excerpt, financial writer Jonathan Clements argues that many investors and financial advisors are still following outdated financial principles that no longer apply in today’s market. He gives three examples of such principles: the belief in star fund managers, reliance on outdated yardsticks for measuring market valuations, and the idea of investing solely in bonds for retirement income. Clements suggests that investors should instead focus on earning a healthy total return by allocating at least half of their portfolio to stocks, and using bonds as a complement to stocks rather than a standalone investment.