WARREN BUFFET is the Most Impractical Investor – somehow not a single MEDIA guy has talked about it !!


Thursday, 11 April 2019



WARREN BUFFET is the Most Impractical Investor – somehow not a single MEDIA guy has talked about it !!



Dear Fellow Investors,



Greetings from Hitesh! Our post on CRUDE / RAHU’s Entry into Mithun Rasi and our call on the year 2019-2020 are the most read posts during the last week. I thank you all for being my regular reader. Today I am dealing with the most unique trait of WARREN BUFFETT which no media guys have pointed out – the way in which we are going to share today.  





What is the NORMAL way of dealing with life/investments and money?



For a normal person more is better than less. New is better than the old. More options are better than fewer options or no options. Consuming now is better than consuming in the future.



If you are into business – they tell you that the areas or group of customers, you are having is very less compared to the areas or customers you can add.



In short, NORMAL guys have become more and more HAVING ORIENTED rather than BEING ORIENTED. Having something is more important than using that thing. It’s normal to see many unpacked things in any house nowadays. It keeps on adding thanks to AMAZON and FLIPKART.



Is there anything wrong with this attitude or approach?



If you have a SHILPA SHETTY SYNDROME (Highly Practical) you will say there is nothing wrong. But if you have an AISHWARYA RAI SYNDROME (Highly Impractical), you will focus more on consuming things you are having rather than just adding more and more things. If you have missed our post on Aishwarya Rai – you can copy the below link in your browser and read.






How does your above behaviour impact your INVESTMENT PERFORMANCE?



You are always in the lookout for more and more investing options. You want some new ideas each day. I have seen guys with 50-100 companies in a portfolio of just Rs.5 lakhs. They call them SUCCESSFUL INVESTORS – because some of their shares have gone up by 100% to 200% in a year. But still, their portfolio value is around Rs.5 lakhs only.



Buffett is highly impractical when it comes to his life / investments and business.



He is staying in the same house for more than 40 years. He was driving the same old car for many years. He has not changed his CHAIR for about 33 years.



He is evaluating all the shares like normal guys or other investors. But when it comes to investing – he is investing in only those stocks which are moving up in his portfolio. He was adding COKE / AMERICAN EXPRESS and things like that over a period. Rakesh was adding TITAN / CRISIL / LUPIN and in recent months – DHFL at all the prices. These guys are not worried about PRICE FALLS if they like the business models and management of the companies.



Due to this IMPRACTICAL BEHAVIOUR – they are left behind in terms of their stock performance in some years. Buffett’s portfolio had performed badly in 1999-2000 when TECH boom was going on. Most Fund managers had written off BUFFETT as a SHREWD INVESTOR. He was considered and written as outdated investor or investor who has lost his golden touch.



During 2004-2007, REAL ESTATE shares were in the boom in India and RAKESH did not invest in them. Fund Managers and MEDIA were talking that RAKESH MISSED the BIG RALLY of his life. People have written off RAKESH and stopped following his picks.



What BUFFETT kind of INVESTORS believe and follow?



For BUFFET kind of guys - Less is more. Because of their IMPRACTICAL attitude (from normal person’s eye), today BUFFETT is still 3rd RICHEST PERSON with NET WROTH of USD 82.5 Bln on the EARTH and RAKESH is the still No.1 individual investor in India with NET WORTH of around Rs.15000 Crs.   



Whom should a NORMAL guy follow?



Zig Ziglar, the motivational speaker of USA, had once said – YOU HAVE TO BE BEFORE YOU CAN HAVE. So, the focus should be on BEING and not on HAVING.



Those who are focusing on HAVING only – they live a shallow / lonely and empty life. After having all, in the end, they feel they have nothing.



You can take your personal call for where to focus. Personally, I have got the biggest rewards following BUFFETT STYLE.



Wish you a very happy life.



Follow me on Twitter @hiteshmparikh / WhatsApp - +91-9869425399.



Live With Passion…Invest With Passion.



Hitesh Parikh.

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