Verdict on the Accident of Mr. Mistry proves our Analysis was 100% on the dot

 20^th September 2022

Verdict on the Accident of Mr. Mistry proves our Analysis was 100% on the dot

Dear Fellow Travellers,

Namaste! Thanks for being a regular reader. The research and analysis of the accident are out. As per the MEDIA, the 100Km patch of the road from Ghodbandar to DAPCHARI in PALGHAR had 262 accidents in the year. So, far 62 people have lost their life. The road is good for a speed of 40Km per hour and travelers driving at a much higher speed end up in accidents in this patch.

What was our call?

On 12^th September 2022 – we had written our post – “The Real Secret of accidental death of Mr. Mistry”.

In the same, this was our categorical analysis.

What did Sun Tzu say in the ART of WAR?

The first piece of advice he gave was to KNOW THE TERRAIN. If you don’t know the TERRAIN – you can’t win the war.

Those who are ultra-rich have access to tons of money and the latest gadgets which they can buy or import at the speed of thought. They have the right contacts.

They buy the SUPER CAR or SUPER BIKE which can run at 150-180-220Km per hour or more. They have the right to enjoy the best of things.

But when you are staying in India – you know the quality of the infrastructure and the mentality of the masses with respect to public property. When you know these two – you know the TERRAIN that your SPEEDY CAR is not suitable in India.

In India, Super Train like RAJDHANI is not running above 85 Km Per Hour. While it has to run on the TRACK and no TRAFFIC / No POT HOLES / NO BAD ROADS.

In such a scenario – if you run your CAR at the speed of 100Km/Hr  or above on the SO-CALLED GOOD ROAD – GOD will be waiting to meet you.

So, Seat Belt / Air Bags can’t save you – as the overall infrastructure is not suitable for a speedy car or bike in India. Those who believed in the Media story – they missed the real issue. 

We are proved 100% right with the above research.

What are the implications of SPEED in the investment HIGHWAY?

Somehow, SPEED is compared with Success and if you are not SPEEDY, you can’t be successful is a general belief. Isn’t it funny that people like SPEED in earning money, eating, doing anything but when he dies EARLY – they say – It’s UNTIMELY DEATH. Isn’t it natural to die early, if you have speedily made money or got success at the speed of thought? Why double standard?

If you have a double standard – remember – you will be the worst sufferer in your life when situations are not in your control.

What happens when you RUN at the SPEED not supported by the MARKET or ROAD?

You will meet with an accident. Either you will die or your CAR will die. In the investment area – either you will die early with the pressure of performance or your capital will go away in one wrong decision.

There is not shortcut in life and investing.

My LEARNING from the 100 years of MARKET Performance?

I am a Buffett student for life. All my wisdom was first borrowed from Buffett. I have applied them in Indian circumstances and I have earned my success by practicing the same with lots of patience in the last 30 years.

As per Buffett – DOW return since 1900 is about 6%. S&P has moved about 12% in the last 90 years. Sensex's return in the last 42 years is about 16-17%. So, this is the long-term SPEED at which the money has grown in the USA and in India. Now, those who want to drive their portfolio at a higher speed than the above – will have to meet the accident some day or the other.

Thanks to the DEMAND of HIGHER RETURN in the short time – there are suppliers of the same also. We have a lot of ALGO traders / Money doubling schemes / Fixed return schemes of plantations companies, Pyramid schemes, and chit funds/tons of Futures and Options strategies. It makes me laugh at the people who are planting such ideas in their would-be client’s minds for their vested interests.

I have two basic learnings which I follow when I invest my own money.

1.   If I make 9 women pregnant – I can’t make a kid in one month. I will have to wait for 9 months. Whether I like it or not.

2.   Share prices are SLAVE of business performance and not Economy or Political performance. So, if the business is performing – someday the price will come up. You need to hold it. Don’t worry yourself with GDP and INFLATION and other figures. Look at the company you want to invest in. What is the RESISTANCE power of the company? How strong is the company’s immunity in the given environment?

I have always followed the above two Buffett's advice. I urge my clients to follow the same.

Buffett has underperformed the S&P since 2009. Still, he is healthy and working at 90 plus. He has accepted that he can’t beat the market always.

If you want ACCIDENT FREE and SMOOTH WEALTH CREATION – you will have to agree to the above principles  someday for sure.

All the best.  

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

Learn a Lesson. Live with Passion & Invest with Reason.

Hitesh Parikh.