Thanks Sorub... A new word and and and art learnt.

Originally posted by Vivek Sukhani Vipul,   Although I agree with you somewhat yet I have some difference of opinion as well. You can escape Phase 1 if you are so attuned, if you have the discipline. With some bit of education of investment science( although, you may also call it a art), you can also straightaway enter into stage 2.Also, sometimes you dont transit from stage 2 to stage 3 for your entire life. Some rigid fundamentalists never got into stage 3. This is especially true for people who never look at anything else apart from the figures. they work in this matter with a very scientific rather than a artisitc bent of mind. Investment Gurus like Walter Schloss or Benjamin graham will fit this bill.   In my opinion, the transition of phases is also very blurred. You will find numerous examples of people staying in stage 1, making rich gains during the bull run and later squandering all their gains ... they promise to themselves they will never make the same mistake but the lure of good profits and a dangerous seelf confidence( rather, over-confidence) that they will call it quits at the most opportune time, make them stay in Stage 1....

Agreed, basant... you need to lose to understand how multibaggers are created. If this is what you wanted to say, I beleive its a right presumption. Stage 2 type of investors will never be able to get into emerging sectors.the difference between the 2 is like what Mr. Pranab Kumar Bhattacharya(PKB200) told me on yahoo messenger... CHETAK and an elephant.But frankly speaking, I have always adopted the elephant style as against CHETAK.... I beleive value stocks are good when they have the capacity to grow for it is growth which changes the value of the value stock. However, if a growth stock grows there is no change is value brought about... unless it can super grow, then growth stock will grow. I beleive its more risky to stick with growth stocks especially if they are in transition. A case can be made of Mahindra GESCO, and many logistic plays which were looking so good just 8 months back..... today we hear so little about them. sugar was once touted as the most growing sector when ethanol related stuff was doing the buzz.... today its neither a growth nor a value sector.Growth stocks have very high betas which make them out-performers but as a result of which, they have a very high dispersion of returns. value stocks have very low betas as the dispersion of return is also very very low. Its ultimately buying and selling appropriately is what matters.

Yes you make an interesting point but we as investors have a right to decide whether we want to be a chetak or an elephant.What I wanted to say is that it is very difficult to be both and the entry(learning) costs are far higher in being a chetak then in an elephant.