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deveshkayal
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Joined: 04/Sep/2006
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   Posted: 22/Mar/2007 at 11:33pm |
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Thanks Basantji and Deepinsightji, i have been learning through your question-answers..TED should be there not till 2020 but forever!!!
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"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
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deveshkayal
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Joined: 04/Sep/2006
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Posted: 22/Mar/2007 at 12:13pm |
"You can't make five or ten or twenty times your money if you don't hold on to stocks. Most people are delighted when a stock doubles, and quickly sell to lock in their gain. If a company is still performing, let its stock, too, continue to perform."
Ralph Wanger
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"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
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kulman
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Joined: 02/Sep/2006
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Posted: 22/Mar/2007 at 12:25pm |
Great one, Devesh jee.
I wish I had read such things at your age.
Having said that.....Life can only be understood backwards—but it must be lived forwards!
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Life can only be understood backwards—but it must be lived forwards
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omshivaya
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Joined: 06/Sep/2006
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Posted: 22/Mar/2007 at 12:42pm |
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So true, both Devesh ji and Kulman ji
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The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it
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deveshkayal
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Joined: 04/Sep/2006
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Posted: 22/Mar/2007 at 12:44pm |
Originally posted by kulman
Great one, Devesh jee.
I wish I had read such things at your age.
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I read this in my CA book...."I invest in knowledge,it has given me the greatest returns".
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"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
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basant
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Joined: 01/Jan/2006
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Posts: 18403
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Posted: 23/Mar/2007 at 1:20pm |
Originally posted by vipul
In May'06 fall, RD said he thinks it is bear markets now. I got influenced by him and panic-ed and lost 80-90K in 3-4 days. I had some hard time in June/July. I believe that he also surprised the way market reacted (unless he has 2 faces). I don't blame him for loss it was my own weakness which led me to believe he is correct. That time was very bad time for me. Not only I lost huge money in couple of days but also could not pick some gems on which I was waiting. YES Bank touched 67, Ibulls was under 150 and RCom 170 or so. I was quite active those time but I could not pick them.
Now I strongly believe that analyst have one bear face and one bull face. Time to time they keep showing different face to public in order to gain personally and this game is played since ages from NY to Ahmadabad but game is so beautifully played that still people are trapped quite easily. |
Very piquant remark. A friend of mine who is based out of India tells me that most of the guys who come on TV would go broke if they had to close down their subscription service not that RD does anything of that kind but it tells you that the the average Joe on the street would pay more attention if you come on Tv rather then otherwise.
That May was a terrible time for RD and his fan club and it was also a tough time for me because stocks tanked as if there was no tomorrow and all his fan club members - related to me also were under my skin to sell. Not that they cared for me but they wanted another hand in their support in the hour of crisis but I managed to maintain myself .
But at that time amidst that gloom and doom there were some who still beleieved we were in a boom. Surprisingly one of them was Haresh Chawla the CEO of Tv18 who told me that in the background of this kind of a growth rate it is only speculative as to how long this bearish phase would last. Now we know that it is the dharma of these TV channels to preach boom but this was a private discussion so I do not think that there was any intentional bias in those statements.
But RD was so terrified at that time that he told his relatives and friends here in calcutta that confirm to me if you are in 30% - 40% cash. Even normally when the markets are down he finds it difficult to come to terms with emotion, Bubblevision has an interesting quote for that
" nothing in the financial markets should ever scare us. We are merely talking capital here, not life and limb! And the markets are supposed to rise and fall. "
I think this should be inscribed into the offices of all those experts who get unsettled whenever they see prices drop this happens with RD try talking to him on a week of market decline and you would know what I am talking about.
Coming back to that June thing this is what a very smart investor a dear friend of mine wrote to me.I was unsettled as I had lost 35% of my wealth.
This was written the day we hit 8800 on the index!
Basant,
Since you are a young man, this is probably the first time that you you have lost such a large amount of paper capital in the market. It is normal to feel worried and a little scared when you see your money that you thought was your evaporate into thin air. This is an essential experience for every investor. It is important to understand that as long term investors we don't own paper or electronic stocks but parts of companies. What our neighbor wants to pay us for our stake varies day to day but if the underlying company is doing well and fairly priced we need to hold.
On the other hand if price is too low we should buy more if we can afford it. At this time some mid cap stocks have become very cheap and worth buying.
As you know no one including RJ can be certain about the short term direction of the stock market. On the other hand I feel that Indian markets are poised to do well over time. I continue to remain 100% invested and will remain so even if stocks fell another 30%.
The underlying fundamentals are strong. In addition the enormous liquidity produced by increasing foreign investment (IBM is investing 6 billion dollars in India over 3 years- this will be followed by many other companies over the next few years) will lead to increasing prices of stocks. The primary risk is political ie victory of parties that have no market orientation
Now it is great to write these lines at 13,300 but for someone to hold that opinion when the index was at 8800 is phenomenal.
I respect this man for his views though it is really surprising that we do not own a common stock - in India. He was not comfortable with Pantaloon since the begining and Trent and Educomp we sold out together and the RBI does not let him buy TV18/NW18.
We need to be in the circle of good smart people who can combine skill with emotion and thankfully I have developed a habit of disassociating myself from someone whom I think does not possess these attributes.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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omshivaya
Senior Member
Joined: 06/Sep/2006
Location: India
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Posts: 5966
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Posted: 23/Mar/2007 at 1:40pm |
Sometimes I really wonder sir you know...GOD really understood the plight I was in and that I was in search of some REAL HELP VERY URGENTLY(due to many personal reasons), and that is why he criss-crossed my way with that of TED.
More I think of the first day I checked into TED(thru a link on RD ji's chat actually), the more I feel it was much more than a co-incidence. Maybe the story is same with others or maybe not. Anyhow, my story has just begun and I have to keep going at this for another 10 years at least. Then maybe a bit of taking it easy. Cant afford that now at any cost. Cant thank Basant sir enuff though...
As Kulman jee's tagline goes...
Edited by omshivaya - 23/Mar/2007 at 1:47pm
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The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it
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xbox
Senior Member
Joined: 10/Sep/2006
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Posts: 2001
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Posted: 23/Mar/2007 at 1:49pm |
We need to be in the circle of good smart people who can combine skill with emotion and thankfully ...
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Basant jee, Please don't remove me from TED.  Now I understand genesis of TED. 
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Don't bet on pig after all bull & bear in circle.
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