Interesting Similarities Between Warren Buffett and EKLAVYA
December 23, 17
Interesting Similarities
Between Warren Buffett and EKLAVYA
Greetings from Hitesh! It has been a very eventful week
and as usual we made good money from the market. I keep on getting various
questions and one of the most often asked questions by many of my readers is as
under :- “I understand the market in
details, I have an experience of more that 5/10/15/20/25 years in market, but
how come I am not able to make money like successful investors?”
I have simplified the above question so as to encompass
all the investors in a various age group.
Now let us deal with this question.
I understand the
market in details…..
This is the most fundamental mistake done by 90% of the
investor friends. I am not saying you should not understand the market or
market understanding is not needed while investing. All I am saying is MARKET
understanding / having contacts with RIGHT SOURCES/ Reading CHARTS and
ANALYSING BALANCESHEETS / Discussing with FELLOW investors may be necessary but
not the fulfilling condition for making money from stock market.
In the past I have written many post on HOLISTIC SUCCESS.
Holistic Success needs to deal with 5 factors – Your VASTU / You / Your Resources
/ Your skills to use your resources and Your Fate. ( Source GITA chapter 18,
slok 13 and 14).
I have dealt with VASTU. Now the TIME is to deal with you.
My questions are
- You may be a MASTER ANALYST of
market, but how well you understand yourself? How well you understand your BODY
and MIND? How well you understand your HIDDEN MOTIVES?
In last 25 years I have dealt with lots of investor
friends. They commit to me for long term investments, they promise for
Patience, they promise for buying when market goes down, they promise to invest
more and more as the years goes by and things like that. 90% of the guys get
panicked when their shares goes down by 2% to 5%. They easily forget that being
a long-term investor – they should add more shares.
My humble understanding is most guys don’t understand
their MINDSETS.
Let me give you some of the examples of mindsets.
1. Quick Profit
Mindset:- In share market parlance this is
known as SACLPING. These guys have a mindset to earn Rs.1000 to Rs.5000 for the
day. They want POCKET MONEY. But they talk about INVESTING!!
2. Regular Income
Mindset:- These are typical SALARY MINDSET
guys. They want profit every month. Many guys after investing compare that had
they kept their money in FD, they would have made at least 7%!! These people
also talk about INVESTMENTS.
3. SPECULATIVE
MINDSET:- As soon as they get the TIP, they
buy the share. They have no patience to check the fundamentals or the trend of
the chart. All they want is to DO SOMETHING EVERYTIME. They are GAMBLERS but they
talk about investments.
4. SHOPKEEPER
MINDSET:- The way shopkeeper opens the shop
and wait for the customers, these guys take the positions and wait for the
market to change the TREND. They are better than SALARIED INCOME GUYS but they
can’t be considered investors.
5. GOOD TRADERS:- They do the study and enter the trade. They play the
upside fully and they get out when the TREND changes at the first instance.
They make good money than above FOUR but they are also not the INVESTOR.
6. BUSINESSMAN
INVESTORS:- They go one step ahead then traders.
They wait till the TREND continues irrespective of the intermittent
corrections. They can be considered investors but they also do not amass a
great wealth.
7.
WEALTH CREATORS:- They
don’t play on TREND. They play on BUSINESS GROWTH. As long as business keeps on
growing, they hold their investments. These are the guys who make 90% of the
money.
I have enlisted above 7 categories of MINDSETS. Now all
these guys consider themselves as investors. The challenge for NORMAL investor
is to KNOW where he stands from number 1 to 7. 99% of the time, NORMAL investor
falls in the category of 1 to 4 and they consider themselves as they are in
category 6 or 7.
So, coming back to - I
understand the market in details….. It’s good for you. But you must FIRST
understand yourself.
Look at BUFFETT
and EKLAVYA. BUFFETT is 1800 miles away from USA stock market and has created a
WEALTH, which nobody has done so far. He understands himself and his core
competencies. Many times he has said that I invest in only those businesses,
which I understand.
The same goes for EKLAVYA. He became a GREATER ARCHER than
ARJUN by practicing in front of GURU DHRON’s IDOL. He is also an example of Self-understanding.
What NEXT?
We are at the FAG end of 2017. A kind of HOLIDAY mood is
there in the AIR. I suggest take time out for soul searching. Look into
yourself, your investment behaviors and your hidden motive. May be you are
aware about market but the time is for you to know yourself.
On October 12, 17, we wrote a post to
help you understand yourself. The title was “You know about KYC. What about
KYS? KNOW YOUR SELF through your palm – 4 easy steps.” It is still there on
our BLOG. Please read.
If you need further assistance, please approach us.
Have a HAPPY WEEKEND.
Live With Passion…Invest With Passion.
Hitesh Parikh.
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