Ignorance, Imperfect Information & Perfect Knowledge

July 8, 2013

Ignorance, Imperfect Information & Perfect Knowledge

Greetings from Hitesh! Hope you all are having a nice time. On 28^th June, we had launched a free weekly recommendations services…..I had a good response to that.

I see three kinds of people have sent the confirmations to me…..

1. Those who really want to make money.

2. Those who want to test our expertise at ground levels before they can commit further.

3. Those who want to have it…..just because it is free!!

Whatever may be the case with each of them…..we will share our performance with you all. However, today we are going to deal with the famous story which I am sure you must have read it sometime or the other. Let me deal with that.

A Blind Cookie Seller and MBA Son:-

There was a very famous and successful cookie seller. Though he was blind, he had a great entrepreneur spirit and he was minting money. He sent his son to distant university to get his MBA. Son came back and he told his father that World is going through a very tough time and we should be prepared for MANDI. If we expand our business at this time, we will incur losses.

Blind old man thought that his son is well educated and he can not go wrong!! So, he stopped expansion plans. Stated reducing the cost….which affected quality and ultimately less sells. Old man was happy that his son was right and they have taken a right decision!!

I am sure you would have read many variations of this story. Now let me deal with the captioned subject.

Ignorance:-

The old blind fellow represents the ignorance. He could not read and write….he had only two faculties….Guts and conviction in his own product….…..he used both of them and he was successful. However, ultimately he lost his business as he was ignorant!!

Many a times a small investor makes a killing in the market…may be due to market timings or his luck…..he considers this as his SKILL!! He is neither ready to understand the ground realities of the market nor ready to develop the skill sets for the same…..and ultimately he losses his total money.

Imperfect Information:-

The young MBA, lacking the vision and experience of the real world, was carried away by the MEDIA…..and helped his father to close the shop!! This guy represents the imperfect information.

This guy wants to make fast money. He wants to prove to his surroundings about his skills.  He believes that he can have a BABY in a month, if he could just keep 9 guys on the job!! He is not ready to take pain to follow the natural laws. Ultimately he also perishes.

Perfect Knowledge:-

This guy is at the top. He understands the ground realities. He has guts, vision and intellectual faculties to deal with the issues at hand.

He knows on what basis he has taken a decision and he is also aware that there are many other factors, unknown to him, can affect the end results of his decision. When unexpected event comes on his way…..he just asks…HOW TO DEAL WITH THIS TO KEEP ON GOING AHEAD?

My Personal Understanding:-

Market reflects a sum total of collective mind operating at a given moment of time. It is very difficult to control your own mind. So, to control collective mind is next to impossible.

Therefore, we believe that Market is 100% imperfect and there can not be a perfect knowledge to deal with ever changing collective mind. However, we can surely follow the smartest of the minds in the market.

In a recent survey of 100 High Net Worth Individuals in Mumbai, 87 of them said they are seeing their income going only one way since 2008….and that is up! In Mumbai, it has become difficult to sell a flat below Rs.2 Crs…..but there is a rush and long waiting for flats above Rs.25 Crs!!

My Personal Suggestion:-

If you really want to make money, stop following media. They will confuse you. Confusion will lead to inaction, loss of opportunities and frustration.

Start following Smartest Minds of the market….find out what they are doing…..try to copy them and you will get the same results.

Unique Free Money Making Opportunity For You All:-

Since 30^th June, we have started to send Weekly Investment Ideas every Sunday. This is 100% free. If you want to join….just send one email from your side….saying that you are interested in receiving our Weekly Investment Idea.

Kindly forward this email to all your friends and make a difference in their life.

You can also contact us for personalized investment solutions.

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Live With Passion…Invest With Passion.

Hitesh Parikh.