Buy Buy Stocks or Bye Bye Stocks – what is your View Now?

Friday, 18 May 2018

Buy Buy Stocks or Bye Bye Stocks – what is your View Now?

Greetings from Hitesh! A normal guy comes with the two options in the market. Either he would be aggressive in buying stocks as if there is no tomorrow or he would be aggressive in selling stocks and get out of the market for ever. The funny thing about him is he comes in BUY MODE when the TEJI is about to get over and he comes in the SELL MODE when Mandi is about to get over. In both the way he ends up losing.

What happens when you have two options?

We will call first option as THESIS and the second option as ANTI-THESIS. Say first option is BUY then second option is SELL.

The great Phycologist of the last century Mr.Sigmund Fred always talked about EROS – love and sex and his total theory of human existence was based on the sole purpose of this. As he grew old he realised another aspect and that was THANATOS – the instinct to DIE. He took long time to realise this and it became ANTI-THESIS of his THESIS of EROS. His findings was 100% opposite of what he had talked through out his life. It was proving him 100% wrong about all his earlier findings. But the guy was HONEST and GUTSY, he confessed about THANATOS also. Life did not permit him to live long enough to find the SYNTEHSIS between the two and he left the half way to his theories.

Our rishis have been smart to talk about SYNTHESIS in life and they have said that LIFE and DEATH both are elusive. The main thing is SOUL and it keeps on taking newer and newer birth and keeps his journey alive.

How SMART investors also makes the same mistake?

In a 16^th May letter by Mr.Porinju to his clients, he says – “To be very frank, I am little baffled this time looking at the extent of erosion in the portfolio value in such a short period. However, I feel comfortable looking at the VALUES of what we own rather than PRICES we see today.”

He is also talking about two aspects only – Price V/s Value.

This is like SELF COMFORTING and it lacks the SYNTEHSIS.

But if you go to MASTER INVESTOR, he always talks about SYNTHESIS – He sees the picture in 3D.

We always have 3 elements – Proton / Neutron and Electron. Brahma, Vishnu and Mahesh. Satva, Rajas and Tamas. Adhi, Vyadhi and Upadhi. Past, Present and Future. Above all are the best examples of SYNTHESIS.

The only guy who has been consistently applying this principles in the field of investments is Mr.Buffett. Read all his letters and you will never find he is talking about the two factors – Value V/s Price. He has gone one step ahead and talked about BUSINESS OWNERSHIP. He says you are the OWNER of the business to the extent of the shares you own. He says focus on business. Price and Value will keep on moving in opposite direction and it will mis-guide you in your investment decisions. The soul of investment is not Value or Price. The soul of the investment is BUSINESS MODEL of the company you hold. He says look at the Business Model – has any significant change happened in it due to market conditions? If not, just hold the business. He has been living very active investment life at 80 plus because of his way of doing SYNTHESIS in each of his life and investment situations. You must read his biography – The SNOWBALL to understand his master way of doing SYNTHESIS.

What’s in it for NORMAL investors?

If you are also in BYE BYE STOCKS mode, then you are missing the 3^rd dimension of synthesis. Take each of your company and check its business performance rather than confusing about value and price. Once you look at your portfolio from the above angle, you will have a holistic view of the total.

What about PRICE sensitive GUYS?

Say you are not ready to look at the SYNTHESIS and all your focus in PRICE and only Price. What did we tell you?

I have been inviting most guys to invest since 2009. They all came in 2017. In May 2017, I had written my post – ARE WE HEADING FOR A CORRECTION LIKE 2008 – part 1. Most guys were not convinced with our vision and they relied on free advice and they are facing the music due to that now. In October, 2017, we wrote – Are we heading for a correction like 2008 – part 2 and we gave the time of MANDI till Janaury 2020. In spite, of such a categorical guidance, most missed the reading.

Today NIFTY and SENSEX are stable or moving up but most portfolios are bleeding.

So, if you are price sensitive type, you need to invest some more money in appointing your personal consultant and listen to him.

Can you give some SOLID example of Synthesis in personal life?

Look the way you are raising your Son or Daughter. You are spending lakhs on school fees and also pay a bomb for his personal tuition whether he is in 1^st standard or 10^th standard. You have no worry for any RETURN on investments and if at all you have any expectation from your son or daughter in your old age – you have absolutely NO GAURANTEE that he or she will take care of you               (PRICE ASPECT). There is also no guarantee that he will become top ranker and make you proud due to all your educational and extra-curricular investments (VALUE ASPECT).

Still you go on taking all the troubles for them. Why? Because he or she is YOUR SON or DAUGHTER!! Am I right?

The SOUL is that he is YOURS. So, you know how to do SYNTHESIS in personal life. Just extend it to INVESTMENTS.

What will happen if you apply SYNTHESIS to investments?

The way you look at your own son or daughter, you must look at your hard-earned money. Your money is also your SON in your NEED. In fact, it is a 6^th sense which will keep your other 5 senses active. Your son may not be available when you need him the most, but money will be available 24X7, if you have properly invested the same.

The way you appoint personal tuition teacher for your son, appoint your personal investment consultant and you will see the things in 3 dimensions. If you like our way of looking at investments, you are welcome to appoint us. Do contact.  

Have a GREAT WEEKEND.

Follow me on Twitter @hiteshmparikh or on Whatsapp - +91-9869425399.

Live With Passion…Invest With Passion.

Hitesh Parikh.