There are many ,,, many ,,, u don`t find them in news papers ... look around broking houses . u will find such smart people , with such trading ( not investors) history u will be amazed .... Just how much we dislike trading ( here in TED ) ..... it should not make us prejudiced ... I am here to make money , however!!!!!
You can do a small exercise . Go to Kotak , or karvy or enam .. get their biggest broking client .. have a look at his portflio try and meet him ...you will hear a differnt and successful story .. And i am saying this after experiences and also that I am a big follower of BUY AND HOLD ... but I am not rigid as well !!
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well, I am open to your suggestion. there are people out there. I am not skilled at it. Mohnish Pabrai especially makes a mention in a book called "trade like buffett". that the real money is out there in special situations, arbitrage and of that sort of stuff.
Let's say you buy Coco-Cola at a discount and follow a strategy of buy and hold forever. In any business, take for example like Microsoft it has a ROE of 25%. But the bulk of the cash it generates is not reinvested but is given as dividends or heldin bank for 1 %.
So if you hold Coke forever, the return that you get would correspond to the ROE of 20% in the long term. Nobody can beat it.
Even in the Indian markets people thought 30% returns would be a guarantee. but a reversion to the means occurs and it is no more than 15%. So a buy and hold strategy cannot give you more than 15%-20%.
There is no business in the world that can reinvest cash unlimitedly forever and ever. I have accepted my limitation that I cannot make more than 15-20% consistently. there are people out there. I am not one of them. If I do not have the edge, I do not participate in the scenario.
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