Why So-Called Good Persons and ITC shares do not move up in their life and price?

 4^th June 2021

Why So-Called Good Persons and ITC shares do not move up in their life and price?

Namaste! As expected, most readers found it difficult to digest our last post – Investment is a loss. So, today I am going to talk about Normal good person and the most talked-about company ITC. Normal good persons are law-abiding / god fearing / socially considerate / following ethics and morals as per their respective background. In spite of following all of the above, can you see they don’t make tons of money? They are not that successful when it comes to their economic positions. Most of the time, they have to compromise on their dreams.

They are like ITC. All good but no progress. Let us see today the ROOT CAUSE of their failures.

ITC V/s. NESTLE / UNILEVER / MARICO / DABUR or PATNAJALI

I have compared ITC with MNC giants / Indian giants and Yoga Guru turned Businessman managed FMCG company - PATANJALI.

I have found ITC equally good on all the counts of quality when compared with the above giants. In fact, in many areas, ITC is way ahead in terms of qualitative factors.

But ITC share prices have not moved up while all the above have shown drastic progress in their prices.

When I look at the Normal Good Person and compared it with the top guys – I see him better in many counts compared to the top guys. But he is always struggling in life. Let us look at normal complaints or questions of normal persons.

Normal Complaints of Normal Good Persons: -

These are the common complaints.

1.   I am working hard; I am smart but my income is not going up.

2.   I am fed up with my life partner – should I take divorce?

3.   My kids are not listening to me, what should I do?

4.   My boss is not giving me a raise, in spite of my working for 14 hours a day.

5.   My in-laws are harassing me – what should I do?

The main point in all of these kinds of complaints is simple – I am good but I am not happy.

Let us also Look at the Typical behaviour of Normal Good Persons: -

They want something of everything in their life. If I look at their portfolios – they will have 50-100 companies and investments would be not more than Rs.5-10 lakhs. When the prices of some companies hit the roof, they become happy that they have those shares. But if you ask them the qty – they say 10 shares or 1 share.

You will find they invest some in Shares / some in Mutual funds / some in Small saving schemes / some in Gold / some in insurance.

Another notable behaviour of the normal person is he tries to be likable to everybody. He can’t displease anybody. When he tries to keep all happy – the person who is unhappy is himself.

The ROOT CAUSE: -

Look at the promoter’s holdings in all the above-mentioned companies when compared with ITC. They all have 60% promoter holding on average. ITC has ZERO promotor holdings.

It means there is no WILL POWER to change the company or to take the company to the next levels. The current management has made ITC a MASALA KHICHDI kind of company. You may eat Khichdi – very good when you are sick – but you can’t separate rice/dal and other things from the mixture. What’s more, you will not like to eat Khichdi every day or once you become okay.

Normal people have a lot of BELIEFS. He believes in GOD / Astrology / Science and other logical or non-logical faculties. Any kind of BELIEF is injurious to personal progress. BELIEF is the easiest way to run away from WILL POWER. Somehow, a NORMAL person is fast to believe in something rather than to KNOW something. They lack the willpower to explore things as they are and see the results themselves.

Eg. In the above example point number 2 - I am fed up with my life partner – should I take divorce?

Now, a person has been staying with his life partner for 5 to 25 years. He or SHE has not changed over the years, in spite of so many efforts/fights. Your personal experience of so many years is saying that he / she is not going to change. Then also you want to BELIEVE that he will change someday and you will be happy ever after. The fact is the person who is asking such a question lacks the WILL POWER or DETERMINATION to take the decision to get out of the relationships.

I am waiting for the day when ITC comes out of the BAD MARRIAGE. I am sure, it will move up fast post-divorce. Till then like a fighting couple – ITC will live a life of compromise.

Larsen was also a KHICHIDI and the market did not like that. Larsen too had ZERO promotor holding. Management took a long time to demerge various divisions and today group is commanding much better market capitalisation than it was a single company.

What NEXT?

This post is not about ITC. This post is about NORMAL PERSON. If you are having the above kind of behaviour or complaints from your life/job or relationships – the best things are to work on your WILL POWER and GUTS. You can’t have a cake and eat it too.

If you don’t work on them – you will not PROSPER for sure. In fact, you will die with a lot of dreams and hidden desires for the next life. In short, you will not come out of your life and death cycle.

Take your call.

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

 

Live With Passion…Invest With Passion.

 

Hitesh Parikh.