Selling out on company disappointments!
Printed From: The Equity Desk
Category: Market Strategies
Forum Name: Fundamental
Forum Discription: Discuss the operations and finances of any of your companies.Make the other participants aware on the investment opportunities available in a stock on PE free cash flow etc
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=2041
Printed Date: 04/May/2025 at 11:35pm
Topic: Selling out on company disappointments!
Posted By: aloksahi1971
Subject: Selling out on company disappointments!
Date Posted: 23/Jan/2009 at 4:11pm
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I was wondering if any other person has had paralisis after the slide in the Sensex since Jan.
I feel after reading the coments of Basant Sir with regard to Yes Bank in Outlook Money that most of us suffer larger losses due to this factor.A good investor I guess is nimble.
Any Thoughts? ------------- Born To Golf forced to work. |
Replies:
Posted By: basant
Date Posted: 23/Jan/2009 at 4:44pm
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Its not easy to cut losses eiuther loss of capital or loss of profit. It gets tougher when you have to justify it around to people around you. Perhaps on the biggest requisites of an investor is to dump the stock that he holds when he sees the fundamentals moving against him.
But it does draw a lot of raised eyebrows and frowns but that does not matter to me- after all I have to take a decision which seems right at the spur of that moment we cannot go back in hindsight and change the clock!
Personally I give a lot of time to the companies that I hold maybe one quarter or two quarter and am prepared to lose that incremental 25% once the story seems to be deteriorating but then we do need to sell out at a point.
If you don't bet you can't win!
If you lose all your chips you cannot bet! - Larry Hite ------------- '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 |
Posted By: stockaddict
Date Posted: 23/Jan/2009 at 6:37pm
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Selling goes against the grain of a long term investor. Before he realises that the best time is past , price has corrected to so much extent that it is hardly profitable to sell. Also it takes only a few sessions/weeks to destroy years of capital gains. Sometime I feel one should have a trader's mindset while booking out. |
Posted By: arunshah2k
Date Posted: 23/Jan/2009 at 6:56pm
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I agree, by the time one decides to sell on earnings news, market had already discounted that fact. Also, as I mentioned before it is a challenging thing to hold on to a stock after it has fallen 80-90% and with detoriating fundamentals in a bear market. I found that in 2001 bear market, many midcaps fell 80-90% and their profits were devastated, but then when the tide turned, these midcaps became 100 baggers and with profits zooming. Selling just because stock has fallen down 80-90% and company is showing bad profits does not mean the company cannot turnaround. I know this is an overused example, but the thing that avoids me selling companies that have fallen 80-90%, is that Walmart also fell 80% in 1973-1974 recession, but then since has rebounded 500 times. I know all companies are not Walmart and Walmart is just one of case, but still. |
Posted By: basant
Date Posted: 23/Jan/2009 at 7:22pm
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That is why one should buy cheap or else sell early if the purchase price isn't cheap.
Be the purchase price be so attractive that even a mediocre sale gives good results - Warren Buffett
If someone could sell at thhe tops and buy at the bottoms then he would have had his name in the Forbes list of Richest indians.
Somehow when markets fall the error of not selling early isn't too big that is because all stocks fall so if one stock is down 65% and a solid bluechip with steady growth is down 50% the incremental loss isn't that big as it appears provided the investor is able to wash his sins off the moment he sees that he has commited one.
------------- '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 |
Posted By: Shikari_Shambu
Date Posted: 23/Jan/2009 at 9:55pm
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"Somehow when markets fall the error of not selling early isn't
too big that is because all stocks fall so if one stock is down 65% and
a solid bluechip with steady growth is down 50% the incremental loss
isn't that big as it appears provided the investor is able to wash his sins off the moment he sees that he has commited one." Great words Basantjee but mind always imagines what it could have been if he sold out at top and moved to debt or other asset class. Also, a thing about percentages. Do you always analyze your investments from a percentage angle? I always do from an absolute angle. For example, 1) If I invest 20,000 and the stock falls 50%, my (notional )loss is 10,000 2) If I invest 500,000 and stock falls 25%, then my (notional) loss is 125000 Obviously, I did better with my second investment but somehow that pains me more than the first ( more absolute damage). Is there any technique you use to look at things objectively? |
Posted By: stockaddict
Date Posted: 23/Jan/2009 at 10:52pm
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[QUOTE=basant]That is why one should buy cheap or else sell early if the purchase price isn't cheap.
Somehow when markets fall the error of not selling early isn't too big that is because all stocks fall so if one stock is down 65% and a solid bluechip with steady growth is down 50% the incremental loss isn't that big
What would you prefer at this moment, a large cap bluechip say Axis bank trading at PE of less than 10 , which may grow at 20-25% or a midcap which is trading at PE of 2-3 with expectation of 30-40% growth for next few years?
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Posted By: kumardiwesh
Date Posted: 23/Jan/2009 at 11:07pm
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The primary question is visibility of earnings and not rate of growth of earnings. ------------- "History does not tell you the probability of future financial things happening" - Warren Buffett |
Posted By: arunshah2k
Date Posted: 23/Jan/2009 at 12:18pm
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From my point of view, one should look at companies that can exist for atleast 5 years. Now no one knows how serious this current crisis is going to be in the world. Maybe every crisis seems as bad as 1929 depression, but only time will tell how long this will last. There is no point in a buying a midcap that shows growth only for 2-3 years and then collapses, because what we want is a company to exist with higher EPS/Profits at the time of the next bull run. I noticed that maximum money is made in midcaps at the start of a bull run. Many midcaps went up 5-10-20 times from 2003 to 2004. This was to match their price with the current EPS and rerating to higher PE. Post 2004, prices increased as earnings increased. Only a chosen few companies will have increase in stock prices in the bear phases, though there will be many that will show growth.
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Posted By: basant
Date Posted: 23/Jan/2009 at 6:55am
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I prefer companies whose EPS can be predicted to grow over the next 2-3 years. Waiting endlesly is not an option.
Yes, nice way of summarizing it. The mirage to get sucked in chasing growth and value is highest in these times as there is almost zero error for disappointment
.
------------- '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 |
Posted By: kumardiwesh
Date Posted: 24/Jan/2009 at 3:00pm
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Lot of mid-caps appear to be mighty cheap to me too.
But I've been asking myself the same question about earnings. It's too difficult to know whether earnings would grow or not, forget at what rate. If earnings fall aprt these companies would actually get more expensive even if they fall in price. As Akash Prakash contends in his latest article, many companies that appeared to be secular growth stories in easy liquidity conditions are actually cyclical businesses. Even if we want to buy them we should buy them after a few quarters of earnings disappointments. These companies have negative cash flows and are tied to external factors for growth. They don't grow through internal accruals. ------------- "History does not tell you the probability of future financial things happening" - Warren Buffett |
Posted By: aloksahi1971
Date Posted: 24/Jan/2009 at 3:40pm
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The case in point here is VISIBILITY OF EARNINGS at this juncture when the money supply is tight and sales look difficult projecting a earning figure will have a negative bias just as positive bias is inevitable on a sunny day. There are some sectors that will grow like TITAN and some that have taken a beating like Real estate will bounce back.Most long term investors will look back at the charts some years down and see this fall as another trough in the upward spiral.But it is the once who are invested now who are having their coviction tested . ------------- Born To Golf forced to work. |
Posted By: HallaBol
Date Posted: 24/Jan/2009 at 6:29pm
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This is great time to load companies with long term earning visibility, which are having near term trouble.
------------- The future is never clear, you pay a very high price in the stock market for a cherry consensus. Uncertainty actually is the friend of the buyer of long-term values. - Warren Buffet |
Posted By: basant
Date Posted: 24/Jan/2009 at 7:37pm
So they will and all of us and use those charts for future sermons but the fact is 1 out of 1000 would be able to capitalise on it in foresight.
 ------------- '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 |
Posted By: arunshah2k
Date Posted: 24/Jan/2009 at 10:03pm
And doing this, is the biggest challenge. How to identify companies that can turnaround in future, but having lots of issues now? |
Posted By: Vivek Sukhani
Date Posted: 24/Jan/2009 at 8:58am
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The key thing is to avoid getting disappointed.
I can give my example here. This fall has hurt everyone who had remain invested. So, there's nothing like I am better off and I am worse off etc. sort of a thing here.....however, you can regulate the level of panic you have in you. Thats perfectly manageable.
Firstly, adequately diversify. Dont become obssessed with a few companies. I have had disappointments with some companies like thirumalai Chemicals, Ultramarine chemicals, century enka, kanoria chemicals. Some have not performed as per my expectation like Goodyear, Voith Paper, Orient paper, Shipping Corporation etc. But, even then I have never felt dejected. Thats because, I have generally bought them by converting my profits elsewhere. Also, alongwith such disappointments, I have had made some wonderful switching to stocks like Castrol, HUL, BASF( which I subsequently converted to castrol), GlaxoConsumer, tata tea etc. So, diversification has helped me very much in managing my panic level.
Secondly, and most importantly try not to become extremely focussed on capital gains in the near term. Most of us just claim to be long term, but the moment we start losing big, we start showing our true colours. Always remember to make multibaggers, you have to first ensure that the bag size is small.
Thirdly, avoid this tendency of dreaming with eyes wise open. Always understand that the more widely held a stock is, the less probable is to make big money over there. Have the right sort of dreams at the right point of time. Have a bigger picture in mind, but have that picture at the right point of time. Retail will be a big theme, there's no doubt about that, but have that vision when P'loon was less than 50 coins a ticket. At 500 coins a ticket, you had everyone carrying that dream, that vision. The result is for everyone to see.
Also, try not to rely on other people's judgements. Everyone has a different sort of fund requirement, different risk appetite, different financial conditions. Whats good for a very risky person, may be fatal for a very conservative person. there's nothing more dangerous than borrowed conviction.
Lastly, and most importantly have that tenacity and stamina to fight back. Just think about it, even if you lost 60 p.c. , all you need is a 2.5 bagger to recoup all your losses. Thats not a big feat, when the tide turns. But set your sails correct to caitalise on that tide. Not everything will go up 2.5 times. Some may just continue to sink. Just get out of those sinking ships and wait out on a troubled but perfect ship, which will start sailing smoothly once the storm is over.
The key is to think, and think very smartly. Thats the best way to avoid getting disappointed.....
------------- Jai Guru!!! |
Posted By: basant
Date Posted: 24/Jan/2009 at 10:49am
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It isn't as blanket a call as diversification or concentration. If you had diuversified between Punj, GE Shipping, PRIL and Reliance you would have done terribily compared to holding a single stock as Titan!
This is as on date and tomorrow the story might turn but the focus point is to buy companies that do not have earnings disappointment or whose EPS will grow everythig else is a slave of corporate earnings and the there are various ways to explain how not to lose money but the simplest and the easiest one is to buy scalable growing profitable businesses.
------------- '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 |
Posted By: Vivek Sukhani
Date Posted: 24/Jan/2009 at 11:59am
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Well, the topic is on selling on disappointment, so i was talking on how not to get disappointed....... You are painting a scenario where you have all the suckers( although, I dont think GE has been anyway near to being a sucker like PRIL or Punj) and alternatively, you have concentrated in a stock which has been a winner.
What if I had diversified into HUL, castrol, Glaxo consumer, ITC and Wyeth and had concentrated on just Punj Lloyd or larsen????
the skill to make money is not only to buy companies with visible earnings or scaleable earnings, but to buy them very cheap. The necessary condition may be scaleable earnings, but the sufficient condition is to get them very very cheap.
People simply dont get a hang of both the variables at the same point of time. A dumb person like me is obssessed with the second variable whereas some smart people are just obssessed with the first variable.
However, its imperative to have the necessary courage. For without confidence, if you ever get in a hole, you will never be able to come out of it. ------------- Jai Guru!!! |
Posted By: basant
Date Posted: 25/Jan/2009 at 1:05pm
1) WHern companies do not peform they disappont investors one cannot expect to smile when companies show less then expected growth in earnings.
2) There are several suckers some suck in price some in time. HUL has sucked investors for the past 8 years in time. It has UNDERPEFORMED the sensex people would have done far better in a FDR, given a chance to choose between a HUL in 2003 and a PRIL a smart investor like me
 would have (has) gone for the latter.3) It is always desirable to take a longer term view rather then take a 12 month view and paint the whole world with that brush. I know of no investor (except in hindsight) who exited growth companies in January 2008 and bought HUL. These are fairy tale stories and never happen in real life. If HUL has been the best performing stock for 2008 it has been the one of the worse performing stocks from 2000!
4) There is another great company called VST Industroies which has a great yield ratio but the stock price is down over the last 8 years. These are the ultimate suckers not the ones whichg give you a 120 bagger and take back 75% from the top!
5) WHy I have mentioned VST is because the biggest bear of 2008 owns a 10%+ stake in that company so even the smart money is doing dumb things.
6) I talked of Titan because I own it as part of my super concentrated portfolio and till date it has done well. I am not sure of what happens tomorrow - either side.
------------- '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 |
Posted By: samirarora
Date Posted: 25/Jan/2009 at 2:14pm
I bought Henkel India about 3 years ago, had really great hopes for it, bought quite a bit too... so far, no performance at all.... i am thinking real hard regarding what to do with it now.. esp. since i bought for nearly thrice as much as it is available today.. and i have 87000 shares... the decision is turning out to be quite tough for me...
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Posted By: Vivek Sukhani
Date Posted: 25/Jan/2009 at 2:26pm
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Nobody is saying not to get disappointed.......but dont sell on disappointment. By the way, any person who has made money here is a fairy tale fabled experience for a loser. ------------- Jai Guru!!! |
Posted By: basant
Date Posted: 25/Jan/2009 at 2:34pm
yes, I agree. At one point I was looking at stocks like this will go up only 5 times let me look at a 10 bagger now the question is. How much can I protect myself before we go out to bat again.
Things have come a full circle. We do learn new things from the market don't we?
This grandmother of all bear markets have humbled the biggest bulls and that is how markets have to behave.
------------- '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 |
Posted By: Vivek Sukhani
Date Posted: 25/Jan/2009 at 2:48pm
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Actually stock picking is not that very important to make superior returns. Its asset allocation which holds the key.
I think we should behave more normally rather than like a disgusted hopeless person. I am perhaps one of the least experienced of all investors here, yet I have noy yet lost any bit of conviction in my stocks and for market in general. Infact of late, I am no longer asking my friends to 'convert their way through'. For me, its time to gather one's thoughts and start a bit-bit accumulation.
I believe we need to a bit forgetful now rather than keep losses in front of our mind. Its good to be cautious but caution doesnt get you returns. Not being enterprising, in the name of caution, is equally uncalled for, as is being enterprising just for the sake of it. The period of inaction is over now. Its time to pick up pen and paper and get going.
------------- Jai Guru!!! |
Posted By: basant
Date Posted: 25/Jan/2009 at 2:58pm
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It is all about stock picking for me. 90% of my money has been made in three stocks I was always 100 invested so asset allocation means little to me. ALl I want is downside protection before I look at the upsides I cannot wait and lose all the money chasing returns. 2009 or 2010 will provide several potential multibaggers I can see many of them every day but then there are several signals which one needs to identify before he can jump in.
------------- '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 |
Posted By: Vivek Sukhani
Date Posted: 25/Jan/2009 at 3:13pm
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But even though we have made wonderful returns in the market, but we have got to remember we were helped very much by the circumstances. I think it was more of God's grace than anything else.
I have seen 3 kind of people in the market:
1.People who make so much return during good times that they perfectly insulate and prepare themselves financially for the future, even though they lose heavily after the good times are over( as they dont make switches between asset classes)......
2.People who make decent returns and make good switches to other investment avenues, and prepare themselves for the future.
3.People who make such horrible investments during good times that they lose whatever little they have earned in the good times and also ruin themselves totally for their present and the future.
Its those who are really stuck who need to show tenancity and strength of rational thinking and character to get back running. the first 2 categories, will survive and its the third group of people, for whom survival is at stake. ------------- Jai Guru!!! |
Posted By: stockaddict
Date Posted: 25/Jan/2009 at 1:03am
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I agree with Vivek that buying cheap is the only sustainable way to earn profit for a long term investor, though it should be combined with the principle of picking scalable earnings growth stories. We have seen that even the companies who were supposed to have scalable growth stories too have faltered or are facing difficulties in recent times, therefore if one pays too high a price for those in the hope that 'a few quarters hence the stock will look cheap' and justifying by rationalising ' it has always been expensive stock' one may face some unpleasent surprise. Buying low gives you that elusive 'Margin of safety'. There may be an individual success story built on a careful risk taking strategy but it may be difficult to replicate widely.(Even bulk of Basant's returns are from Pantaloon and trent, both bought when they were value)
As Graham has defined so succinctly "An investment operation is one which, upon thorough analysis, promises safety of principal and a satisfactory return. Operations not meeting these requirements are speculative."
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Posted By: ananthap
Date Posted: 25/Jan/2009 at 6:10am
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I am new to investing and found this discussion very interesting.
I would like to know more about how to pick stocks and technical analysis.
End ------------- Sincerely, Anantha |
Posted By: HallaBol
Date Posted: 25/Jan/2009 at 7:37am
you have really summed it very well. There is absolutely no substitute for having a margin of safety. "Have your purchase price so that even a mediocre sell will give you a return" - Buffet ------------- The future is never clear, you pay a very high price in the stock market for a cherry consensus. Uncertainty actually is the friend of the buyer of long-term values. - Warren Buffet |
Posted By: HallaBol
Date Posted: 25/Jan/2009 at 10:01am
One way to look for this is out of favour companies. When companies are out of favour, there will not be any built-in expectations in price. That will give great margin of safety, if things go wrong. Remember when did RJ bought huge stakes in Titan etc. companies. That time nobody was touching it, it was out of favour, it had no expectations built-in price. Even when Basant bought PRIL, it was not a discovered stock in the market. Now to the question of whether things will turn around or not, nobody can tell you for sure. Even great investor like Basant went terribly wrong in predicting visible growth for many stocks like PRIL, TV18, Voltas etc. Many of RJ picks did not work for him. RJ still did not lose money in them as he got in at great prices. Always remember that turning around is always a probability than certainty. Only the probability is more or less, but never pay high price for that probability . Never bank on growth with certainty, have a margin of safety in price if things go wrong. And remember even after having margin of safety, some of picks might not work. Still if 50% of them works, you will make lot of money. ------------- The future is never clear, you pay a very high price in the stock market for a cherry consensus. Uncertainty actually is the friend of the buyer of long-term values. - Warren Buffet |
Posted By: aloksahi1971
Date Posted: 25/Jan/2009 at 10:29am
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This Idea of buying cheap and selling at a higher level is the easiet form even the local village pansariwala aplies it in his day to day dealings.But as far as stocks go their a host of factors that do effect the price.Say a stock like Mahindra Lifespace.No debt ,Good projects,unending demand but yet it has been beaten down.
Titan Huge inventories some sectors like eye care and percision tools section not performing. Is this inventory caused by slugish sales???
What may seem cheap may not live upto ones expectations.I got into Biocon as Bill Gates predicted Biotech was the future the stock has gone no where in the Bull run and has been slamed in the bear.Yet Kiran Majumdar is a toast of all.
This selling of a scrip at the right time in my view is the ultimate test for some one in the market.The notional gains can be booked and send to safe keeping and a fixedmount to be left in the stocks to be augmented in a fall and reduced in a spike.
I wont lie but I for one was waiting for the Pre Buget in 2008 to sell but as most of you know................................... ------------- Born To Golf forced to work. |
Posted By: Vivek Sukhani
Date Posted: 25/Jan/2009 at 11:13am
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And always understan that the best price to get a stock is at its knock-down value.
And this has to be generally at a very sufficient discount to book value, where its anticipated that the company will be making losses, that there will be hidden liabilities unearted and are likely to become actual liabilities, that the asset values be worth less than what its shown. ------------- Jai Guru!!! |
Posted By: HallaBol
Date Posted: 26/Jan/2009 at 12:16pm
All stocks might not give you returns from beaten down levels. Biocon was one which did not give return. Even if some stocks click, returns will be huge, just like taking a bet on PRIL in 2003. ------------- The future is never clear, you pay a very high price in the stock market for a cherry consensus. Uncertainty actually is the friend of the buyer of long-term values. - Warren Buffet |
Posted By: Shikari_Shambu
Date Posted: 26/Jan/2009 at 12:34pm
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My random thoughts 1) I dont't think Basantjee is ignoring margin of safety. Margin of safety does not come only by making purchase price attractive (though that is one of the easiest and proven way). Safety can also come from past history, proven track record, Management pedigree, scale of opportunity and host of other things. I might have some difference of opinion on HDFC Bank ( since I am willing to take a bit more risk for bit more returns in Axis),but there is no doubt that there is a good margin of safety in HDFC Bank at these prices. 2) When Basantjee got into PRIL and TV18, he had a great thing going since he had margin of safety coming from knock down prices as well as scale of opportunity. 3) Even now, there would be stocks which are in situations like PRIL,etc were in 2003 and I am sure Basantjee is looking at them. I don't think we should assume that he will hold on to HDFC Bank and Titan forever. These have been good stocks to hold on to for the past several months |
Posted By: stockaddict
Date Posted: 26/Jan/2009 at 1:37pm
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Shikari shambu,
The idea was not to find fault with any one person's style, we all know that Basantjee has done wonderfully well for himself, probably better than anyone else has done here. But we are looking for principles with universal application, one which a person with less wisdom and experience can also apply with reasonable success. As mentioned by you, Basantjee has explained many times here that he entered pantaloon and trent when they were going for a song using all available parameters of analysis.
The problem arises when others join in the party much later and at much much higher price, and when even the story may be hitting roadblocks, and say ' hey, basant has made a ton in this, it seems a great story, let me just join him to make some for myself' there goes the margin of safety and caution for a toss and when the tide turns , they are left holding the baby! That's why 'borrowed conviction' is dangerous. One should imitate the strategy and not the stocks (picked with a time lag) and try to find your own pantaloon, titan and HDFC bank.
Once again I see that since Basantjee's pick currently are Titan and HDFC Bank, some people see multibaggers here too ignoring his stated objectives of first preserving his wealth and then growing it, while their idea may be capital growth first at these knocked down values.
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Posted By: basant
Date Posted: 26/Jan/2009 at 3:15pm
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We are loosing focus from the topic of this thread!
------------- '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 |
Posted By: HallaBol
Date Posted: 26/Jan/2009 at 3:29pm
Definitely safety also comes from past history, proven track record, Management pedigree, scale of opportunity and host of other things. These things are also equally important. But, these things should be given a miss, if there is no margin of safety in the price. Buying stocks cheap can wash all other sins. ------------- The future is never clear, you pay a very high price in the stock market for a cherry consensus. Uncertainty actually is the friend of the buyer of long-term values. - Warren Buffet |
Posted By: basant
Date Posted: 26/Jan/2009 at 8:43pm
------------- '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 |
In fact the protests are more from the latter then the former. Its become social cause to protest against Biyani but that should not matter to me since I made my capital out of that man only. Posted By: investor
Date Posted: 26/Jan/2009 at 11:15am
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I agree completely, i was also in similar frame of mind earlier and now first priority has changed to how to protect capital. Market teaches us new things every time.
------------- 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! |
Posted By: aloksahi1971
Date Posted: 27/Jan/2009 at 12:19pm
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Now for this valuation and exsit . PRIL and Trent were both cheply available any sane person would have bet on the competence of the TATAS rather than Biyani who had a string of faliures causing asplit in the family. But then Biyani had th vision and Basant Sir the Money ------------- Born To Golf forced to work. |
Posted By: furkanalam
Date Posted: 27/Jan/2009 at 4:27pm
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Yes after creating so much wealth from stock markets it is prudent enough to try to protect that.....This totally justifies HDFC Bank and Titan holdings of Basant.....
But for others who are new or 2-3 year old in this market...its time for them to look for 10 baggers or more as Basant had done when he entered share markets......then only can they think of protecting capital....so phases are different....
So strategies differ based on experience and wealth created......
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Posted By: investor
Date Posted: 27/Jan/2009 at 8:47am
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How Buffet's refusal to accept the fact about the economy and NOT sell is costing him http://www.cnbc.com/id/28877530 - http://www.cnbc.com/id/28877530 by the man who went short against the world's greatest investor, and for all the right reasons http://www.cnbc.com/id/28815392/ - http://www.cnbc.com/id/28815392/ ------------- 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! |
Posted By: kulman
Date Posted: 27/Jan/2009 at 9:08am
Very intriguing arguments.
And make sure you have the suitable stamina.
That's the unfortunate truth. ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: manishdave
Date Posted: 27/Jan/2009 at 9:23am
| WB's worst performer is Bank of America. He purchased 87m shares of BofA @near 50 and it is now @7. Clearly this is worst time. Even WB had never had such a bad year or even close to it. |
Posted By: furkanalam
Date Posted: 27/Jan/2009 at 10:54am
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Maybe its the age effect....
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Posted By: investor
Date Posted: 28/Jan/2009 at 8:28am
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Very true. And if you dont have the stamina, then its better to stand on the sidelines and just watch the other runners go by, which is still far better than fainting due to exhaustion at the finish line! 
------------- 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! |
Posted By: kulman
Date Posted: 28/Jan/2009 at 9:18am
Yes, right. Most market participants have incorrect notions about their own stamina. ------------- Life can only be understood backwards—but it must be lived forwards |