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How do tariffs affect economic growth, competitiveness and trade openness?
What Is the Impact of Tariffs on a Country’s Exports and Global Trade Flows? Tariffs are like toll gates on international roads. When one country raises the toll for goods coming in, traffic patterns meaning global trade shift immediately. But those shifts don’t just affect imports. They also hit exRead more
What is the impact of tariffs on a country’s exports and on global trade flows?
What Is the Impact of Tariffs on a Country’s Exports and Global Trade Flows? Tariffs are like toll gates on international roads. When one country raises the toll for goods coming in, traffic patterns meaning global trade shift immediately. But those shifts don’t just affect imports. They also hit eRead more
What Is the Impact of Tariffs on a Country’s Exports and Global Trade Flows?
Tariffs are like toll gates on international roads. When one country raises the toll for goods coming in, traffic patterns meaning global trade shift immediately. But those shifts don’t just affect imports. They also hit exports, supply chains, relationships, and the global flow of goods.
Let’s break it down using real-world logic instead of just economics jargon.
1. Trading Is a Two-Way Street If You Tax Others’ Goods, They Tax Yours
When Country A imposes tariffs on imports from Country B, Country B often retaliates with tariffs on Country A’s exports.
This triggers a cycle:
Country A protects its local industry
Country B protects its own
Both sides start losing export markets
Businesses suffer, jobs get affected
This is exactly what happened during:
The U.S.–China trade war
EU–U.S. steel and aluminium dispute
End result:
Exports shrink, tensions rise, and companies lose predictable global customers.
2. Tariffs Increase Production Costs → Exports Become Less Competitive
If a country imports raw materials, machinery, or components that are suddenly taxed more, the cost of making finished goods rises.
Examples:
Steel tariffs raise the cost of manufacturing cars
Electronic component tariffs raise the cost of phones, laptops
Chemical tariffs inflate the cost of pharmaceuticals
This means the final exported goods become:
Expensive
Less competitive
Harder to sell internationally
So even though tariffs target imports, they quietly damage exports by making production costlier.
3. Global Supply Chains Get Disrupted
Today’s products are rarely made in one country.
A single smartphone may include:
Chips from Taiwan
Screens from Korea
Batteries from China
Assembly in India
Software from the U.S.
When tariffs interfere:
Shipping routes change
Supply chains slow down
Companies shift assembly to avoid taxes
Some suppliers get replaced
This creates massive uncertainty and delays.
Impact:
Exports drop because companies can’t maintain stable, low-cost production networks.
4. Tariffs Create Trade Diversion Goods Start Flowing Through Different Countries
When a country raises tariffs on one partner, international companies find new paths to move products.
For example:
If the U.S. imposes tariffs on Chinese electronics, companies may ship via Vietnam or Mexico
If India raises tariffs on gold from one country, traders reroute through alternate hubs
This phenomenon is called trade diversion.
It doesn’t reduce trade it redirects it.
But it disrupts existing export-import relationships and makes global trade more complicated.
5. Tariffs Slow Down Global Trade Growth (or Even Reverse It)
Whenever tariffs rise across the world:
Shipping volumes fall
Container demand reduces
Global manufacturing weakens
Commodity prices fluctuate
Businesses delay:
investments
factory expansions
hiring
new market entries
This “chill effect” reduces export opportunities for everyone especially developing economies.
6. Uncertainty Hurts Exporters More Than Tariffs Themselves
Businesses hate unpredictability.
Tariff wars create:
Sudden price swings
Contract complications
Longer negotiation times
Fear of future hikes
If an exporter is unsure whether their product will face a 0% duty or a 25% duty next month, they avoid long-term deals.
This damages exports even before tariffs are applied.
7. Tariffs Can Sometimes Boost Exports But Rarely
There are rare cases where tariffs indirectly help exports.
For example:
If a country protects a strategic industry long enough, it may grow strong
Once the industry matures, it can compete globally
Then it starts exporting successfully
This is called infant industry protection, used historically by countries like:
South Korea
Japan
China
But this only works if:
The protected industry actually improves
It doesn’t become lazy due to over-protection
There is a clear roadmap from protection → productivity → exports
Most countries fail at this, but when done right, it can transform an economy.
8. Tariffs Change the Direction, Speed, and Volume of Global Trade
Think of global trade like water flowing through pipes.
Tariffs act like:
Blockages (trade slows)
Redirectors (goods take new paths)
Pressure points (companies shift production)
This leads to:
New supply chain hubs (e.g., Vietnam, Bangladesh, Mexico)
Decline of old hubs
Reduction in export volumes for affected countries
Boost for unaffected countries
It’s not just economics it’s like watching a river find new channels after a dam is built.
9. Developing Countries Suffer the Most
For developing nations:
Exports are lifelines
Jobs depend on global markets
Tariffs from big economies hit hardest
If the U.S. or EU raises tariffs:
Textile factories in Bangladesh struggle
Electronics producers in Vietnam lose orders
Automobile suppliers in India face uncertainty
Global tariff waves feel like storms to small and mid-sized exporting countries.
Putting It All Together The Big Picture
Tariffs are not just taxes. They reshape global trade in deep ways.
Negative Impacts:
Retaliation reduces exports
Input costs rise, hurting competitiveness
Trade wars slow global trade
Supply chains shift, causing instability
Businesses hesitate to invest
Developing countries suffer disproportionally
Rare Positive Impacts:
Temporary protection may develop strong export industries
Countries may strengthen domestic production
Strategic industries may gain time to mature
But overall, tariffs generally reduce exports and disrupt global trade flows rather than help them.
Final Human Takeaway
Tariffs are like trying to fix one pipe by squeezing another water will find a new way, but the turbulence affects everyone.
In the global economy, protecting yourself too much can end up isolating you. And isolating yourself can reduce your ability to sell to the world.
Most nations learn that tariffs are powerful tools but double-edged ones.
See lessThey can protect a country in the short run, but often they shrink exports and slow down global trade in the long run.
Why do countries impose tariffs on imports?
Why Do Countries Impose Tariffs on Imports? Imagine a country as a big household. This household needs food, clothes, machines, technology and it can either produce them at home or buy them from outside.Now, sometimes buying from outside is cheaper or easier. But sometimes, letting too many cheap gRead more
Why Do Countries Impose Tariffs on Imports?
Imagine a country as a big household. This household needs food, clothes, machines, technology and it can either produce them at home or buy them from outside.
Now, sometimes buying from outside is cheaper or easier. But sometimes, letting too many cheap goods flood in can weaken the local makers inside the house. This is where tariffs come into the picture.
Tariffs are basically taxes on imported goods. And countries use them for many reasons some economic, some political, some strategic. Let’s break it down in a human, real-world way:
1. To Protect Local Industries From Being Crushed
Think of a small Indian manufacturer who makes toys or electronics. If super-cheap imported products suddenly arrive in huge volumes, that local businessman cannot compete.
Countries fear:
Their factories will shut down
Domestic jobs will be lost
Entire sectors may collapse
So tariffs act as a shield.
It’s like putting a “speed breaker” for foreign goods so that local industries have breathing room to survive and grow.
This is especially important in:
Early-stage industries (infant industries)
Sectors critical for jobs (textiles, steel, electronics)
Areas where local production needs time to mature
2. To Encourage Local Manufacturing (Make in India-style)
Many countries use tariffs as a tool to motivate companies to build factories locally rather than just import finished products.
Example:
India raised tariffs on mobile phones and components → Companies like Apple, Xiaomi, Samsung expanded manufacturing in India.
The logic is simple:
“If importing is expensive due to tariffs, companies will start making the product inside the country.”
This creates:
Jobs
Investment
Technology transfer
Local supply chains
3. To Reduce Dependence on Foreign Nations
Nations do not like being over-dependent on others, especially for essentials.
Tariffs help reduce this dependency, especially for:
Food
Medicines
Defence equipment
Electronics
Energy resources
Because if geopolitical tensions rise, being dependent can be dangerous.
It’s a form of economic self-reliance and national security.
4. To Protect Against “Dumping”
Sometimes foreign companies sell goods below cost to destroy local competition.
This is called dumping.
Countries impose anti-dumping duties to prevent:
Market distortion
Price crashes
Unfair competition
It’s like protecting local markets from being sabotaged.
5. To Generate Government Revenue
Before modern income tax existed, tariffs were one of the biggest ways governments earned money.
Even today, tariffs help fund:
Infrastructure
Social welfare
Defense
Public services
For developing countries, this revenue is still very significant.
6. To Correct Trade Imbalances
If a country imports far more than it exports, it creates a trade deficit.
To reduce this gap, governments sometimes raise tariffs so that imports slow down and domestic products get preference.
It’s like restoring balance in a relationship where one partner keeps giving and the other keeps taking.
7. To Gain Bargaining Power in International Negotiations
International trade is full of negotiations and give-and-take.
Countries use tariffs as:
Pressure tools
Negotiation leverage
Strategic signals
Example:
The US often increases tariffs first, then negotiates better trade terms.
It’s not always “economic”… sometimes it’s pure strategy and geopolitics.
8. To Promote Environmental or Social Goals
Some countries impose tariffs on:
Polluting products
Non-ethical goods
Items violating labor standards
This encourages global suppliers to follow better regulations.
For example:
Carbon border taxes
Tariffs on products linked to forced labor
Here, tariffs act as a moral or sustainability filter.
9. To Support Local Farmers
Agriculture is politically sensitive.
If foreign food arrives too cheaply:
Local farmers struggle
Prices collapse
Rural livelihoods suffer
To prevent this, governments make imported food more expensive via tariffs.
It’s a way to protect the backbone of the rural economy.
In Simple Words
Countries impose tariffs to protect their people, strengthen their economy, maintain strategic control, and shape global trade rules in their favor.
Tariffs are not just taxes they are:
Economic tools
Political weapons
Negotiation levers
Development strategies
Every nation from the US to China to India uses tariffs in one way or another to secure its long-term interests.
See lessWhat role do tokenization and positional encoding play in LLMs?
The World of Tokens Humans read sentences as words and meanings. Consider it like breaking down a sentence into manageable bits, which the AI then knows how to turn into numbers. “AI is amazing” might turn into tokens: → [“AI”, “ is”, “ amazing”] Or sometimes even smaller: [“A”, “I”, “ is”, “ ama”,Read more
The World of Tokens
Each token gets a unique ID number, and these numbers are turned into embeddings, or mathematical representations of meaning.
But There’s a Problem Order Matters!
Let’s say we have two sentences:
They use the same words, but the order completely changes the meaning!
A regular bag of tokens doesn’t tell the AI which word came first or last.
That would be like giving somebody pieces of the puzzle and not indicating how to lay them out; they’d never see the picture.
So, how does the AI discern the word order?
An Easy Analogy: Music Notes
Imagine a song.
Each of them, separately, is just a sound.
Now, imagine if you played them out of order the music would make no sense!
Positional encoding is like the sheet music, which tells the AI where each note (token) belongs in the rhythm of the sentence.
Position Selection – How the Model Uses These Positions
Once tokens are labeled with their positions, the model combines both:
These two signals together permit the AI to:
Why This Is Crucial for Understanding and Creativity
Put together, they represent the basis for how LLMs understand and generate human-like language.
In stories,
This is why models like GPT or Gemini can write essays, summarize books, translate languages, and even generate code-because they “see” text as an organized pattern of meaning and order, not just random strings of words.
How Modern LLMs Improve on This
Earlier models had fixed positional encodings meaning they could handle only limited context (like 512 or 1024 tokens).
But newer models (like GPT-4, Claude 3, Gemini 2.0, etc.) use rotary or relative positional embeddings, which allow them to process tens of thousands of tokens entire books or multi-page documents while still understanding how each sentence relates to the others.
That’s why you can now paste a 100-page report or a long conversation, and the model still “remembers” what came before.
Bringing It All Together
but because it knows how meaning changes with position and context.
Final Thoughts
If you think of an LLM as a brain, then:
Together, they make language models capable of something almost magical understanding human thought patterns through math and structure.
See lessHow are agentic AI systems revolutionizing automation and workflows?
Agentic AI Systems: What are they? The term "agentic" derives from agency the capability to act independently with purpose and decision-making power. Therefore, an agentic AI does not simply act upon instructions, but is capable of: Understanding goals, not just commands Breaking down complex tasksRead more
Agentic AI Systems: What are they?
The term “agentic” derives from agency the capability to act independently with purpose and decision-making power.
Therefore, an agentic AI does not simply act upon instructions, but is capable of:
Or, in simple terms: agentic AI turns AI from a passive assistant into an active doer.
Instead of asking ChatGPT to “write an email”, for example, an agentic system would draft, review and send it, schedule followups, and even summarize responses all on its own.
How It’s Changing Workflows
Agentic AI systems in industries all over the world are becoming invisible teammates, quietly optimizing tasks that used to drain human time and focus.
1. Enterprise Operations
Think of a virtual employee who can read emails, extract tasks, schedule meetings, and update dashboards.
Agentic AI now can:
2. Software Development
Developers are seeing the birth of AI pair programmers with agency.
With Devin (Cognition), OpenAI’s o1 models, and GitHub Copilot Agents, one can now:
It’s like having a 24/7 intern who never sleeps and continually improves.
3. Healthcare and Life Sciences
Agentic AI in healthcare is being used to coordinate entire clinical workflows, not just analyze data.
Result: Doctors spend less time on documentation and more time with the patients.
It’s augmenting, not replacing, human judgment.
4. Marketing and Content Operations
Today, marketing teams deploy agentic AI to run full campaigns end-to-end:
Instead of five individuals overseeing content pipelines, one strategist today can coordinate a team of AI agents, each handling a piece of the creative and analytical process.
5. Customer Support and CRM
Agentic AI systems can now serve as autonomous support agents for more than just answering FAQs; they are also able:
This creates a human-like service experience that’s faster, context-aware, and personalized.
The Core Pillars Behind Agentic AI
Agentic systems rely on several evolving capabilities that set them apart from standard AI assistants:
These pillars together will enable AIs to be proactive and not merely reactive.
Example: An Agentic AI in Action
Let’s consider a project manager agent in a company:
No human had to tell it what to do-it just knew what needed to be done and took appropriate actions safely and transparently.
Ethics, Oversight, and Guardrails
Setting firm ethical limits for the action of autonomous systems is also very important.
Future deployments will focus on:
Agentic AI should enable, not replace; assist, not dominate.
Road to the Future
We’re moving toward a world where it’s not about “humans using AI tools to get work done,” but “coordination between humans and AI agents” — a hybrid workforce of creativity and computation.
Concluding thoughts
Agentic AI is more than just another buzzword; it’s the inflection point whereby automation actually becomes intelligent and self-directed.
It’s about building digital systems that can:
In other words, the future of work won’t be about humans versus AI; it will be about humans with AI agents, working side by side to handle everything from coding to healthcare to climate science.
See lessWhat’s the future of AI personalization and memory-based agents?
Personal vs. Generic Intelligence: The Shift Until recently, the majority of AI systems-from chatbots to recommendation engines, have all been designed to respond identically to everybody. You typed in your question, it processed it, and gave you an answer-without knowing who you are or what you likRead more
Personal vs. Generic Intelligence: The Shift
Until recently, the majority of AI systems-from chatbots to recommendation engines, have all been designed to respond identically to everybody. You typed in your question, it processed it, and gave you an answer-without knowing who you are or what you like.
But that is changing fast, as the next generation of AI models will have persistent memory, allowing them to:
That is, AI will evolve from being a tool to something more akin to a personal cognitive companion, one that knows you better each day.
WHAT ARE MEMORY-BASED AGENTS?
A memory-based agent is an AI system that does not just process prompts in a stateless manner but stores and recalls the relevant experiences over time.
For example:
How it works: technical
Modern memory-based agents are built using a combination of:
Taken together, these create continuity. Instead of starting fresh every time you talk, your AI can say, “Last time you were debugging a Spring Boot microservice — want me to resume where we left off?
TM Human-Like Interaction and Empathy
AI personalization will move from task efficiency to emotional alignment.
Suppose:
This sort of empathy does not mean emotion; it means contextual understanding-the ability to align responses with your mood, situation, and goals.
Privacy, Ethics & Boundaries
If AI is remembering everything about you, then whose memory is it? You should be able to:
Future regulations will surely include “Explainable Memory”-the need for AI to be transparent about what it knows about you and how it uses that information.
Real-World Use Cases Finally Emerge
These are not far-off dreams; early prototypes are already being tested by OpenAI, Anthropic, and Google DeepMind.
The Long Term Vision: “Lifelong AI Companions”
Over the course of the coming 3-5 years, memory-based AI will be combined with Agentic systems capable of taking action on your behalf autonomously.
Your virtual assistant can:
This “Lifelong AI Companion” may become a mirror to your professional and personal evolution, remembering not only facts but your journey.
The Human Side: Connecting, Not Replacing
The key challenge will be to design the systems to support and not replace human relationships. Memory-based AI has to magnify human potential, not cocoon us inside algorithmic bubbles. Undoubtedly, the healthiest future of all is one where AI understands context but respects human agency – helps us think better, not for us.
Final Thoughts
The future of AI personalization and memory-based agents is deeply human-centric. We are building contextual intelligence that learns your world, adapts to your rhythm, and grows with your purpose instead of cold algorithms. It’s the next great evolution: From “smart assistants” ➜ to “thinking partners” ➜ to “empathetic companions.” The difference won’t just be in what AI does but in how well it remembers who you are.
See lessDid an Indian entrepreneur in Dubai praise the city’s efficiency after a pothole near his home was fixed within hours of his complaint?
The Incident: From Complaint to Action in Hours The entrepreneur's video has gone viral across all social media platforms, where he showed a pothole on a residential street near his house in Dubai. He did not rant about it on social media but decided to complain about it using the city's very well-Read more
The Incident: From Complaint to Action in Hours
The entrepreneur’s video has gone viral across all social media platforms, where he showed a pothole on a residential street near his house in Dubai. He did not rant about it on social media but decided to complain about it using the city’s very well-set-up citizen service channel, part of Dubai’s larger “Smart City” initiative, which encourages residents to report directly to civic agencies when there are infrastructure issues.
He was surprised that, in a few hours, the repair crew came on site, cordoned off the area, and fixed the pothole completely. He chronicled the whole process-from complaint to completion-and shared it on social media, commending Dubai Municipality for its speed, organization, and accountability.
Why It’s Gone Viral
The video resonated with millions because it showcases responsive governance that many people aspire for, especially in South Asian cities.
Viewers were struck by how:
From India, Pakistan, and elsewhere, the comments poured in-a mix of admiration at how quickly Dubai’s system could work and frustration with just how long similar repairs can sometimes take at home.
Lessons in Urban Governance and Smart Infrastructure
This part of Dubai’s larger smart-governance model means that every citizen can report on roadways, lighting, waste, and other public matters via apps or hotlines. These reports are automatically routed to the concerned department with SLA-based deadlines for accountability and transparency.
To the technology and development professional, this example shows how data-driven citizen feedback loops make cities safer, smarter, and more livable-a goal that other countries like India, among others, are also pursuing under “Smart City” and “Digital Governance” programs.
Broader Social Reflections
The video also triggered a wave of self-reflection:
It also reminded many that good governance isn’t about big reforms alone, it’s about responding effectively to small, everyday problems that affect people’s lives.
Conclusion
A Model of Efficiency and Accountability But such an ostensibly simple event a pothole repaired in hours has become a metaphor of Dubai’s governance ethos:
responsiveness, efficiency, and respect for its citizens. Here, the praise of the entrepreneur isn’t so much about the quick fix, but about living in a system that respects public trust and treats every resident’s concern, however small, as if it were pressing.
See lessDo the 2025 Bihar exit polls indicate a strong win for the BJP-led NDA and a weakening position for the opposition?
What the exit polls are saying (in plain language) Multiple Indian outlets’ “poll of polls” summaries show the BJP-led NDA (with JD(U) and allies) ahead of the opposition Mahagathbandhan (RJD-Congress-Left). A widely cited round-up pegs the NDA around the mid-140s in the 243-seat House firmly past tRead more
What the exit polls are saying (in plain language)
Multiple Indian outlets’ “poll of polls” summaries show the BJP-led NDA (with JD(U) and allies) ahead of the opposition Mahagathbandhan (RJD-Congress-Left). A widely cited round-up pegs the NDA around the mid-140s in the 243-seat House firmly past the 122 mark needed to form government.
Hindi media roundups also talk up an even bigger margin, with some agencies projecting 150+ seats for the NDA. One specific Chanakya Strategies projection that’s being shared puts NDA roughly in the 130–138 range versus 100–108 for the opposition still a clear NDA edge.
The narrative across live blogs (NDTV, Deccan Herald, Moneycontrol) is consistent: “NDA sweep/comfortable win,” with Prashant Kishor’s Jan Suraaj expected to have limited seat impact.
Not everyone agrees at least one survey highlighted by Mint bucks the trend and hints at an INDIA bloc win so treat the consensus as strong, but not unanimous.
Why the “NDA is cruising” story gained traction
Turnout optics: Bihar registered record participation (≈67%), including a very high final-phase turnout. High energy at the booths tends to embolden whichever side already looks ascendant in exit poll chatter. Whether high turnout favors change or continuity is contested, but the optics help the front-runner.
Alliance arithmetic: The NDA’s seat-sharing (BJP + JD(U) + smaller allies such as LJP (Ram Vilas) and HAM) gives it broad geographic coverage. Several polls also note a “notable” showing for Chirag Paswan’s party within the alliance.
Issue salience vs. leadership: Despite unemployment and governance concerns raised during the campaign, much coverage framed the contest as a test of NDA’s state and national leadership brands which historically convert well under first-past-the-post when the opposition is fragmented seat-by-seat.
Where the opposition stands (and why some are skeptical of the polls)
Opposition pushback: RJD’s Tejashwi Yadav and other leaders publicly rejected the projections, alleging bias and insisting that “votes for change” will show up only on counting day. Some opposition voices even predict a hung House. These counter-claims are part politics, part reminder that exit polls can miss under-the-radar shifts.
The outlier factor: At least one survey contradicts the herd, which historically is when you should keep an open mind Bihar has surprised pundits before.
What to watch next (beyond the headline)
Seat split inside NDA: If JD(U) and BJP both do well, expect quick clarity on Nitish Kumar’s leadership and portfolio bargaining; if one partner hugely outperforms the other, that will shape the power balance for the term. (Exit-poll roundups don’t fully agree on the intra-alliance split.)
The “Paswan effect”: If LJP(RV) converts vote share into seats, it could become a pivotal ally in agenda-setting for specific welfare and quota demands that matter in Bihar.
Geography & margins: Even with a big topline, narrow victory margins can swing dozens of seats on counting day—especially in multi-cornered fights. (That’s why outliers still matter.)
Reality check: exit polls aren’t results
Timing & methodology: These projections were released after Phase 2 voting (Nov 11) and updated into Nov 12. They rely on sample interviews and modeling—useful, but imperfect. Official counting is on 14 November 2025.
Historical misses: India has seen both accurate calls and notable misses (state-wise). In close fights, small errors in swing estimation can flip 20–30 seats quickly.
Bottom line (human, not just numbers)
If you’re asking, “Does the mood music point to an NDA government and a rough night for the opposition?”the honest answer is yes, that’s the dominant signal right now. Most outlets’ compilations say the NDA crosses the majority line comfortably, some by a lot. But elections are decided at the booth level, and Bihar’s politics can turn on fine caste arithmetic, local candidate strength, and last-mile turnout things surveys sometimes blur. So celebrate or commiserate after the ECI tables start filling on the 14th; until then, treat the exit polls as a strong hint, not the final word.
See lessHow should one pick “good companies” in the sea of thousands of listed stocks?
1. Begin with a mindset thinks like a part owner, not a gambler A stock is not a lottery ticket. It's a small ownership slice of a business. The first mental shift is to stop asking "Will this stock go up?" and start asking: “Would I be comfortable owning this business for the next 5–10 years?” IfRead more
1. Begin with a mindset thinks like a part owner, not a gambler
If you think like an owner, then instinctively you are looking for real products, loyal customers, cash generation, and integrity in leadership-not some rising charts or hype trends.
2. Understand the business model how does it make money?
Before getting to any ratio or technical chart, know the story behind the numbers.
Ask simple, human questions:
Financial strength is all about the numbers.
Only when you like the business, check if the numbers support the story.
Key indicators of a strong company include:
You don’t need to be an accountant; just look for steady, upward trends, instead of erratic spikes.
4. Evaluate management-trust is the capital that ends
Even the best product can fail under poor leadership. Look for:
One learns more about management character from reading annual reports, investor presentations, or interviews than from balance sheets.
5. Check the competitive advantage. What’s special about it?
A “good company” usually has something others cannot easily copy called a moat.
Common moats include:
Ask yourself this question: If a new player comes in tomorrow, can they easily take customers away?
If the answer is “no,” you’ve probably found a durable business.
6. Valuation — even a great company can be a bad investment at the wrong price
Price does matter. A great company bought at too high a valuation can produce poor returns.
Use valuation ratios such as:
7. Avoid noise focus on long-term trends
Media headlines, short-term volatility, and social-media hype cloud your judgment.
Conversely, focus on more secular themes:
Picking companies aligned with such multi-decade trends provides a lot more staying power than chasing each day’s price movements.
8. Diversify even the best research can go wrong
Even experts are not perfect; that is why diversification is essential.
Hold companies belonging to various sectors like technology, banking, FMCG, pharma, and manufacturing. It cushions you in case one industry faces temporary headwinds.
A portfolio of 10 to 20 solid businesses usually suffices: too few increases risk, too many dilutes focus.
9. The emotional edge patience beats prediction
The hardest part is usually not finding good companies but holding them long enough for compounding to take effect. Markets will test your conviction through dips and noise.
Remember: good businesses create wealth slowly, quietly, and consistently.
As Warren Buffett says, “The stock market is a device for transferring money from the impatient to the patient.
In other words,
Good companies are not found through stock tips or YouTube videos; they are discovered by curiosity, discipline, and time. If you approach investing as learning about great businesses, not predicting prices, then you will build not only wealth but also understanding-and that is the real return.
See lessWhat role do bonds, cash and diversification play in a volatile market?
1. Cash your emotional and strategic buffer The thing is, cash isn't sexy. It doesn't yield high returns. But during a stormy market, it does provide what every investor desperately needs: control and patience. Why cash matters: Flexibility: Cash does not force you to sell good assets at bad pricesRead more
1. Cash your emotional and strategic buffer
The thing is, cash isn’t sexy. It doesn’t yield high returns. But during a stormy market, it does provide what every investor desperately needs: control and patience.
Why cash matters:
How much is enough?
2. Bonds Stabilizers in the Storm
Bonds have traditionally been the shock absorbers in an investment portfolio, especially government and high-quality corporate bonds. They might not shoot up when the stocks soar, but normally they hold steady, or even gain, when the stocks fall.
Their main roles:
But timing counts:
3. Diversification: not putting all your eggs in one basket.
Diversification is one of the few ‘free lunches’ for investors. It does not eliminate risk but spreads it around so that a single shock will not bring down the entire portfolio.
Types of diversification:
4. The art of balancing your personal mix
5. The human side managing fear and greed
Put them all together, and they help you avoid making emotional short-term decisions that hurt your long-term goals.
The main point is
A volatile market is not an enemy; it’s a test of structure and discipline. Those who plan with the right mix of these three elements don’t just survive turbulence but often emerge stronger, buying wisely when others panic and holding steady when others despair.
See less