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Vivek Sukhani
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Joined: 23/Jul/2006
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Posts: 6675
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   Posted: 25/Apr/2007 at 8:56am |
deepinsight, its what you have tasted initial success with that makes your tiltation....in this market, there's no one way of making money.....there are people who trade in junks and make big money, they wont even dream of even touching sectoral leaders..... they get into outright small-caps and turn on.
Mr. Basant, I think its always better to go with No.2 rather than No.1. the number 2 will always try harder to become no.1..... there's more room for the No.2 to move, whereas the number 1 can onlu go 1 way. Also, one more thing, if we go by business model logic why does a champagne indage behave so differently compared to a shaw wallace. Even UB and United Spirits are becoming non-performers. I think potentiality remains the same for both the companies than why different behaviour on the price front.....
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basant
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Location: India
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Posted: 25/Apr/2007 at 9:20am |
Also, one more thing, if we go by business model logic why does a champagne indage behave so differently compared to a shaw wallace. Even UB and United Spirits are becoming non-performers.
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Business model is not the only thing to look out for. I repeatedly state that one should be invested with good management.I am not sure if champ ind etc have greate managements handling their buisneses.
United Spirits has made a 20 bagger for many and we would have plenty on the forum who would vouch for that. In fact this was Ramesh Damani's biggest hit in this bull run!!!
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Vivek Sukhani
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Joined: 23/Jul/2006
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Posted: 25/Apr/2007 at 9:35am |
ok.....Mr. Basant, doesnt it all become very vague in the end??? I mean you always come across so many exceptions to the rule that the rule doesnt look like a rule anymore.
United Spirits I was talking of more in the context of latest rally.... sure, it has been quite wonderful.
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Vivek Sukhani
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Joined: 23/Jul/2006
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Posted: 25/Apr/2007 at 9:44am |
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Mr. basant, I think its very important to have the investor's instinct..... thats in my opinion the suffcient factor....people give it various names, luck, fate , destiny, god's grace etc..... in my opinion, its all instinct.... as one practices more and more he becomes good at it....I will give you 1 example....I have seen where companies having an oppen offer that whenever their stock comes down majorly, simply sieze that opportunity....I saw it in case of I-flex, saw it in case of syngenta am seeing it in case of Sesa now....I think such event driven cases presents wonderful arbitrage opportunity.....someone was talking about GTL.....may be this may be an opportunity, and we need to trust our instinct. The rule is set....its for us to feel it instinctively and make for ourselves whther the rule will hold or will there be an exception.
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investor
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Joined: 06/Sep/2006
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Posted: 25/Apr/2007 at 9:55am |
Like Basant said, i would tend to absolutely disagree with you on this one. I dont know what your definition of "non-performer" is, but from around 20 Rs. in June 2004 to Rs. 950+ by June 2006 - there is no way for you to call this a non-performer. I can give you examples with figures for the other UB group stocks as well. As Basantji mentioned, it has probably been one of Damani's greatest picks of the bull run, it has been a more than 40 bagger for him, while for me, it has been(and still continues to be!!) a 10 bagger.
Originally posted by Vivek Sukhani
Even UB and United Spirits are becoming non-performers. I think potentiality remains the same for both the companies than why different behaviour on the price front.....
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The market is a place where people with money meet people with experience.
The people with experience get the money while people with money get experience!
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deepinsight
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Joined: 18/Sep/2006
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Posted: 26/Apr/2007 at 7:50pm |
Originally posted by deepinsight
Originally posted by basant
There are two classes of investors:
Bottomline: Both are trying to make some money with different strategies and I am in the Class =>A category
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Basantji:
excellent articulation on a philosophy that would create huge returns for investors.
Q. Why do most people fail in either walking this path or executing on this strategy?
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Basantji:
I was wondering what emotional and mental makeup would help being a Class A investor? Here some thoughts to start and create more complete thoughts
Emotionally:
1. to be handle being alone, taking a concentrated bet always requires some kind of “stake in the ground” mentality, which can get severely tested sometimes.
2. to be able to handle losses and even handle gains. Countless people sell when they should hold and hold when they should sell. Concentrated bets can get quite difficult to handle when they go wrong.
3. to be handle being honest with ones decisions (mistakes). Most people only talk of their winners. If the original thought/investment decision is not correct having the integrity of changing one’s mind.
Mental:
1. Ability to create mental excitement on business opportunities (Your 3 year view)
2. Ability to relate economic models to actual companies and see long term opportunities. (Financials etc. applied to business)
3. Mental rigour to build conviction so that one is clear on what he/she is investing in.
4. Confidence in oneself to dream and think big (about one’s portfolio)
Edited by deepinsight - 26/Apr/2007 at 7:53pm
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"Investing is simple, but not easy." - Warren Buffet
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basant
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Posted: 26/Apr/2007 at 8:07pm |
Absolutely.You have put in the missing parts to that argument and it is not easy to become a Class A investor it should come naturally to you.
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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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tigershark
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Joined: 13/Oct/2006
Location: India
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Posts: 3542
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Posted: 26/Apr/2007 at 8:39pm |
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vivek sukhani, how can one expect every stock to participate in every rally that occurs from time to time.would you call infy a non performer i bought infy in 1994 at 300 rs i have built my portfolio and my life with that money.this rally it has been an underperformer but what is an underperformera nd what is an outperformer i think you need to get that straight.praj is not moving for the last one week does that now becom an underperformer investors have got more than 2000% returns on that stock!
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understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things
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