Why WARREN BUFFETT says “Our PREFERRED HOLDING Period is PERMANENT”?
Why WARREN BUFFETT
says “Our PREFERRED HOLDING Period is PERMANENT”?
Greetings from Hitesh! We are in NEW FY. Many new friends
have joined us in the last week. Thanks for the same. Many are still thinking
or planning. Thanks for your responses to all our posts in the last month.
Investors always ask me – what is the holding period for particular stocks?
What should be the ideal period of holding? What are the criteria on which we
should decide our holding period?
Let me deal with all your questions with LESSONS from my
MASTER – WARREN BUFFETT.
Before I deal with let me deal with the two believes that
we generally follow.
1. Life is EMPTY and
MEANINGLESS:-
This belief was the brainchild of WESTERN Psychologists
like JEAN PAUL SARTRE and many others. Their core belief was LIFE is EMPTY and
MEANINGLESS. HIPPI culture was the result of such believes. There is a leading
institute teaching this concept all over the world and in Mumbai too.
2. The life has a
PURPOSE:-
This is 100% opposite of the above belief. Here the
persons are told that there is a purpose of each life. You just have to find
out!! Whole MANAGEMENT education is based on this belief. Management by
OBJECTIVE / Goals / Targets / Profit and
Loss all are offshoot of this belief.
What is the TRUTH?
Both the concepts are the results of your EGO. The first
one takes you towards the LACK of EGO and second one inflates your EGO. In both
the ways – you are being manipulated by handful of the smartest people on the
EARTH. By subscribing to any of the above belief – you become the instruments
in their hands and they use you for their benefits and you think you are in
CONTROL of your LIFE!! That is the PEAK of their SMARTNESS.
How WARREN BUFFETT is
DIFFERENT?
He does not talk about any of the above. He talks about
ETERNITY/PERMANENCY of holding his investments.
For him Investments is like a RIVER – FLOWING is the
NATURE (not purpose!!) / Rising is the nature of SUN (not purpose!!)/ Growing
is the NATURE of BODY. He sees the picture in TOTALITY. For him everything is
CYCLE.
Before HE buys – he does all HIS RESEARCH about the
business prospects and management and not about the PRICE MOVEMENTS!! He knows
if the business prospects are good and management is good – some day the prices
will move.
He also tells one thing – “buy a business which any fool can run, because
some day a fool will also come”
This comes out of CHOICELESSNESS or EGOLESSNESS. You can
only become CHOICELESS – when you have NO EGO and when you have NO EGO – you
have NO CHOICES. Whatever comes – is the GOD’s BLESSINGS. No goals. No targets.
You will always find him HUMBLE in all his writings / meetings / talks. He has
No GREED and No FEAR. Can you manipulate
this GUY? Just think.
I have READ him time and again and I keep on reading him
and he has not mentioned a single word about GITA or Lord KRISHNA. But he is
living a LIFE of SURRENDER as suggested by LORD KRISHNA To ARJUN. He is
following योग कर्मसु कौशलम्: Yoga Karmasu
Kaushalam.
Normal Investor’s Behaviour:-
Looking at potential profit,
they run towards the investments. Looking at the potential loss – they run away
from investments. GREED and FEAR are two forces, which dominates their
behavior. They become the food for SEASONED BULLS and BEARS in the market.
Financial literature describe this behaviour as “BULLS make Money / BEARS make
Money and PIGS gets slaughtered”. That’s why LEADING MYSTIC of INDIA had given
a meaningful SUTRA – “BHAGOO NAHI, JAGOO”. Don’t RUN, Just be AWARE!!
Just be AWARE about the whole
issue and you will be out of CHOICE / CONFUSION.
Questions to ASK your self?
How many times you have changed
your SPOUSE?
How many times you have changed
your PARENTS?
How many times you have changed
your KIDS?
How many times you have changed
your JOB?
How many times you have changed
your profession?
How many times you have changed
your Residence?
How many times you have changed
your NATURE?
You would have got the worst
time with all of them and best of the time with all of them. You don’t leave
them. They are just left on their own. E.g.You went abroad for a JOB and your
country / your residence /your family/ your kids and many other things are
LEFT. You did not TRY to LEAVE THEM!!
If you have tried to LEAVE them
– there would be a SCARE on both the SIDES. It’s like RIPE MANGO – it falls on
its own. If you pluck unripe mango – there will be a SCARE.
If you understand the above
EXAMPLE – you will understand how Mr.BUFFETT is managing his investments?
What NEXT?
NEW FY has just started. I am
following the ATTITUDES of Mr.BUFFETT. It makes me non-manipulative / transparent and
always seeking truth. This has made my every moment full of inner happiness and
satisfaction.
If you want to enjoy all of the
above – you can also follow Mr.Buffett. If you find it difficult to do it on
your own – be with us. It will speed up your journey.
Wish you ALL A VERY HAPPY
WEEKEND.
Follow me on Twitter @hiteshmparikh /
WhatsApp - +91-9869425399 / www.hiteshmparikh.com
Live With Passion…Invest With Passion.
Hitesh Parikh.
www.hiteshmparikh.com
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