wonderful,
All things regarding fooling and fools have been conveyed fully by your article.. Thanks Suchita Ambardekar. http://www.suchitaambardekar.blogspot.com On Sat, Apr 25, 2009 at 9:29 AM, Tanmay G. Purohit <[email protected]>wrote: > *Dear all,* > > * * > > *It is pleasure writing to everyone after a long time on few issues which > is of major concern about market now. Now Pyramid Saimira forgery case is > hitting headline and we would not go in detail of the case; our concern is > safety of the investor. * > > * * > > *Jim Rogers famously said; Get inside information from the president and > you will probably lose half your money. If you get it from the chairman of > the board, you will lose all of your money. * > > * * > > *Many times I have advised not to take investment decision based Rumors or > Tips as many call it, as many time vested interest is always there. Many > branches wanted to know about some operated stock where I have normally > warned them not to follow or at least not to ask me. Many say I have inside > information that market is going to fall or rise Indian market is like an > ocean and can’t be controlled by few big people and we have seen this over > many years as many have failed.* > > * * > > *There are few stock with low floating stock or small market cap where it > can be operated, that is where we have cautioned many times. I never > believed in Multi bagger as I have no brilliance in finding one, and I never > wished to waste hard earned money in experimenting as 1 out of 100 or 1000 > stock have become multi bagger. * > > * * > > *Playing market volatility in a simple, tried and tested way reasonable > returns has been earned and till now in 2years and 6month, 6list was > introduced VALUE-24, CONTRAINAN-24, QUICK15+6, ARG30, COMPACT-15 and > FANTASTIC-15 and only ARG-30 didn’t perform well. Where we have used simple > method of buying good stocks in bad time as correction has been part and > parcel of market, most of the time we were in top 200 stocks for 80% of our > investment. * > > * * > > *Our objective has been simple as worldwide interest rate is again near > zero and any returns above 20% P.A would be reasonable, never try to double > you money in short time, as saying goes only by folding the currency only it > can be possible. Equity as an investment avenue has been always better if > risk is understood and if informed decision has been taken. * > > * * > > * * > > *The "Bigger Fool" Theory **(This has been send before just a reminder > now).*** > > *Small investors fall prey to day trading practices in a manifestation of > the "bigger fool" theory: This is the financial market version of "jumping > on the bandwagon" -- without examining the actual worth of the stock or the > company, traders blindly buy whichever stocks other traders are buying, > building the illusion of a "hot" stock through rumor and day trader > behavior. * > > *While large investors tend to have experience and a better appreciation > for the fundamentals of the businesses in which they trade, poorly based > decisions can affect the stocks of entire industries when large numbers of > small investors get together to form a "medium-sized shark. Because of the > "Bigger Fool" theory, this can work until the market runs out of bigger > fools, at which point an overvalued stock will come crashing down. * > > *There is a widely held theory in economics called the Bigger Fool Theory, > which states: Buy a stock and you'll make money as long as some other fool > is willing to buy the stock from you at a higher price in order to sell it > to an even bigger fool at an even higher price. (Crash, p. 15) Day traders > and others who ignore the business behind a stock, focusing instead upon > rumors, hunches and trends, make their money because of this principle. It > doesn't matter how overvalued a stock is as long as there are enough people > who think they can still make a profit off of it. Networks of day traders > who follow the same strategies and listen to the same rumors often provide > each other with the bigger fools necessary to make their profits. * > > * * > > *But what will happen when reality catches up? * > > *Investor and trader lose their hard earned money and stocks which they > had thought would help them in future financial planning would erode the > plan.* > > *What would be best investment advice? * > > *Always divide risk have more than 15-20 stock as minimum, we are not > Warren Buffet to part own a company and impose our rules. Invest in best > management practiced companies. * > > *Never try to catch a top or bottom (Bottom is always dirty) invest > specified amount on regular basis on good growth companies. If you are an > investor never hedge your position (Option are ice-cream it always melt). In > case of fear increase your cash position so that you can average in case of > correction.* > > * * > > *Important point I noticed is many withdrew money from market around > 8000-10000 Point in Sensex fearing market would come to 6000-5000, and we > never said this is bottom you buy, recollect buy 50% now if market goes down > to 5000 we will buy another 50%. Time spent in the market is more > important than timing the market, so always try to manage your cash position > as per trend but always be invested minimum 20% at any given point of time. > * > > * * > > * Indian stock market has made many transformation, and now handling of > SATYAM & Investigation of PYRAMID SAIMIRA point to better handling of > crisis, still we have long way to go. * > > * * > > *To conclude investor should understand “Buyer Beware” is always better > than to repent latter, there are so much information available today, use > that to maximum before any investment decision is made.* > > > > --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. 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