Originally posted by chimak10 The trick was just holding the stocks and avoiding the sectors plus Money to buy stocks how many of us had invest able sums then. This gyan and lecture is with total hindsight advantage take it or leave it. It seems just like in life in stock markets too simplicity in thinking wins every time.

They should make every small investor recite your gyan 10 times from memory. RJ and Parag Parikh keep repeating this same thing at every forum they get to interact with investors, but how many people want to hear that part?

Schools should add financial education along with the Moral Science and PT. teach a kid to put 100 rupees a month in an RD for 5 years, that will teach him the power of holding and compounding.

And all my ranting is because I'm angry at the state of affairs. It has come to a point where small investors are being called DUMB MONEY by the brokers and anchors. maybe because they had to work hard for that money and think 100 times before buying stocks. These days the big guys dont even hide their contempt for the little fish.


Edited by Kabootar - 30/Sep/2010 at 11:21pm

Originally posted by Kabootar They should make every small investor recite your gyan 10 times from memory. RJ and Parag Parikh keep repeating this same thing at every forum they get to interact with investors,

Kabootar sir you are making a mungeri blush People didn't understood what i was trying to say.

i didn't mean you buy x numbers of stocks and hold them blindly. A Person should at least understand concept of biz cycles, MCAP, few basic valuation ratios, companies position in the industry, some view about companies management, at least understanding of the business, some basic reading of stock gurus. Avoiding sectors like fertlizer, papers, tires , aviation etc etc. To have some estimate for future growth.

All i wanted to say was that a person since 2003 could have gotten very good decent return in long run by buying companies like consumer companies, many private psu banks, known brand names like 3M, pidilite, castrol without knowing anything about stocks. How many people are stuck in so many real estate stocks, stocks like rcom, suzlon, northgate, indage viniters, etc etc.

I just wanted to say while chasing high touted growth stocks average people didn't make any money.

Originally posted by prabhakarkudva Originally posted by chimak10 I just wanted to say while chasing high touted growth stocks average people didn't make any money. Isn't the same happening with Delta corp now? I still feel the pertinent question is when would one get out of delta corp(or any other high flyer) rather than if you should get in now? An exit strategy can save a lot of heartburn.

I feel an exit strategy is the most important thing in stock market. Worse case you will not make as much money as your friend is making, but you will also not loose money.

Another important point is that when we are following RJ or SA we come to know much later about their buying and don't even know their exit strategy. Also they can hold for years and decades due to their conviction and their research, but how many of us have the conviction to stay put beyond one or two quarters if the company shows average results for some time.

The best example is Hawkins. How many of us will still believe in the story if there is another average quarter.
By the way I have a vested interest in the question, as my portfolio is heavily tilted towards Hawkins.

Originally posted by chimak10 i didn't mean you buy x numbers of stocks and hold them blindly. A Person should at least understand concept of biz cycles, MCAP, few basic valuation ratios, companies position in the industry, some view about companies management, at least understanding of the business, some basic reading of stock gurus. Avoiding sectors like fertlizer, papers, tires , aviation etc etc. To have some estimate for future growth.