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Topic: Shifting Profits Posted: 17/Dec/2007 at 12:08pm
I am intrigued by the fact that the best minds suffer losses.The markets have a mind of their own and slaves of earnings but still there times of extreme exeuberence and manic depresions . The market is not always fair to the stocks.
TED has taught us to be patient long termn investors in a concentrated portfolio that relies more on fundamentals rather than market wispers.But then some times some of the stocks we target may rise above the price that is the within our margin of safety.And short term profits may be generated from special circumstances.E.G IPO .
By appling to IPOs some profits can be generated.I ahve been aloted 60 MUDRA shares at IPO and now it is giving a 200% profit but it is not on my radar for long term same with Kolte Patil.
The stratery I want to discuss is that why not book profits in these counters ,take out the investment and deploy profits in Debt funds this will help to give stability and also provide Psychological support on any ocasion.
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Posted: 17/Dec/2007 at 12:30pm
Buy sell decisions should be initiated on fundamentals and not on how muc we have made and lost.
'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
Joined: 29/Mar/2007
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Posted: 17/Dec/2007 at 12:38pm
If your intention of investing in the stock market is to increase the debt fund kitty slowly, then booking profits might be a good idea.
But if your intention is to put the money back into equities from debt fund later when sensex falls down to 8000 points, only then booking profits is a bad idea.
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Posted: 17/Dec/2007 at 4:24pm
Basanjee, I agree on the fundamentals for this any one visiting the TED site must be having a core portfolio to which He or She will add the shares as and when the conditions are right.But the market presents to us some opportunities akin to grabing the lowest fruit on the tree.These profits can be chanelled some where...
Smarcatjee,Waitng for the mkt to correct is not so bad.A lot of people may be regreting not booking profits in Feb 2000 or Mar 1992.Debt kitty increment will help take the presure off the mind in Bear mkts and may even help to raise cash to buy low valued stocks because at that time the core portfolio will require increment and not depletion.
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Posted: 17/Dec/2007 at 4:32pm
Debt kitty increment will help take the presure off the mind in Bear mkts
This I agree.
But rather than booking profits, it is better not to invest any more fresh money in equities instead. You can increase your debt fund kitty with your salary/business income.
But if you are retired, what you suggested seems to be a good idea.
Joined: 20/Aug/2007
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Posted: 17/Dec/2007 at 5:11pm
It is not that not putting fresh funds in equity is helping take money off the table.What I am looking to do is find the fine balance between various asset classes.This indeed will be dictated by an individuals comfort level with the ammount of risk involved.But risk must have rewards,these rewards have to be enjoyed.Rewards can only be injoyed(not blowing up the money) but changing the asset class and using these allied assets to support the equity purchasing !!! like leveraging.
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Posted: 28/Dec/2009 at 6:45pm
Originally posted by smartcat
But if your intention is to put the money back into equities from debt fund later when sensex falls down to 8000 points, only then booking profits is a bad idea.
Smart Cat, first of all
You seem to have predicted exact levels of 8000 way back in Dec 07 after which all hell broke loose.
Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart.
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Posted: 28/Dec/2009 at 8:15pm
Originally posted by smartcat
put the money back into equities from debt fund later when sensex falls down to 8000 points,
Wow! I think Hit ji deserves as much credit for identifying this pots as Smartcat for making it.
No wonder the cat is upset that no one takes him seriously these days!
'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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