Originally posted by kulman
Originally posted by Vivek Sukhani
The fact of the matter is, we have a lot to learn, and this is applicable to all members, even Basant Sir. The scale of learning required for senior members may be quite low, and for inexperienced and unknowledgeable investors like me, it will be quite quite high.....but everybody here needs to learn.
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I received e-mail this morning by someone who has survived 20+ years in markets. He has mentioned this:
Learning is about more than simply acquiring new knowledge and insights; it is also crucial to unlearn old knowledge that has outlived its relevance.
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Its like what my dad says,
First time a thing happens you dont observe
Second time a thing happens you observe but dont act
Third time a thing happens, you act and you lose.
So, its quite vital to unlearn( ignore observations). We dont know whether we are at Feb-march of 2000 or April of 2003.
And this may indeed be very different from either of the 2 cases.
However, all I can say, its much more vital to have proper fund management than to do a Haudini in these times. I am seeing some of friends, extremely rich otherwise, but getting totally trapped due to their aggressiveness in this kind of a market. I know people, who used to ridicule me that can you get foseco with a single plus order of 25000 tickets, are on the verge of default to their financial committments. And some of these people are into this market for generations now.
The fact of the matter is stocks behave differently at all points of time. If you understand the cause of the difference in behaviour and have the reasoning to understand which stocks serve what purpose in the portfolio, you will be fine. But if you start cursing underperformers and just get into outperformers( both of which are temporary), you are preparing for your own fall.
Thats why I say a chessboard plan. Even i know the first stocks to rush up will be the fancy type stocks like JP, Pantaloon, Adani etc., but am actually committing into stocks like goodricke which are labelled as suckers.
The reasoning is very simple. this period is beyond the understanding of Samir Arora and RJ and many other market champions, so forget about extremely ordinary mortals like me. When in doubt, I will go into stocks which have very little market-related effect and hibernate.
As you correctly pointed out, its very important to unlearn past lessons, but luckily, we are so rookie, we are still in the process of formation and are learning the first lessons of the market. So, there's everything to learn and nothing to unlearn, at least for a inexperienced person like me.
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