Is Your Investment Strategy is same as Congress Election Strategy?

January 17, 2014

Is Your Investment Strategy is same as Congress Election Strategy?

Greetings from Hitesh! Yesterday, Congress met and they decided that they are not going to declare the name of their Prime Ministerial candidate. Media has given the head lines….Right Strategy, Master Stroke by Sonia!! Is it really a right strategy? How the small investors sell their last shirt by following this strategy? Let us look into the same.

Why Congress is strategically wrong?

This time Congress has decided to market Congress. Its 100 years of legacy. It’s achievements in last 10 years. They are placing more effort on the party. However, we feel that it is the leader which makes the party and not the party itself.

Just check the 100 years record of Congress itself….Motilal Nehru, Mahatma Gandhi, Sardar Patel, Jawaharlal Nehru, Indira Gandhi, Rajiv Gandhi….looking at their faces….people used to like Congress…and not the vice versa. Any party is just an extension of its leader.

We this that leadership is more about power and identity……and BJP is showing both….power of clarity and identity of Mr.Modi.

How Small Investors are taken for ride?

I am an investor and all my thoughts are focused in studying the mass psychology and benefit from the same. I am not an expert in politics…..but when it comes to Investments….I think I can talk about the same.

Generalized Thinking:-

When small investors read….Market will go down….they believe that all company’s shares will go down and they just go into inaction. When we told that market will go to 35000….many investors became happy that they will be able to sell all their loss making shares at a profit at that time!!

They do not stop here….they buy small quantity of all the companies they can buy…..I have seen 200 to 300 companies in a portfolio of just Rs.10 to Rs.15 lakhs i.e. an average investments of Rs.5000 to Rs.20000. They very proudly tell me that their portfolio did not lose much when the market went down!! My only question is….are you investing so that you do not lose much or you are investing to make money??? Focus makes the difference in your approach.

Many have invested in IT and Pharma shares thinking that both the industry are good…..we do not deny that…but have all the company’s share in those industry moved up and at the same rate? Only few companies lead any industry or market for that matter. You need to pick those winners to make money in the market.

Leader Effect:-

Take a look at the facts….Infosys moved up from Rs.2200 to Rs.3600…..and the market is giving the credit to Murthy Effect! Can you separate Dhirubhai from Reliance or Azim Premji from Wirpo, Steve Jobs from Apple or Bill Gates from Microsoft? The list can go on. The fact remains that you need to have the IDENTITY.

Do you remember our article last January….What LIC knows about Infosys that we do not know? They were investing in Leader…..average price of Rs.2400…..now the price is Rs.3700….you need to give time to your leader once you invest. This is the secret of LIC for being the most profitable insurance company. Our clients also made tons of money in Infosys!!

There is a risk when you go for the leader…..because if the leader fails….you will have to suffer!! True leader will recover your losses faster than the average company. Ups and downs are the part of any human life….so how a company managed by humans can not have the same?

I would like to mention the beautiful poem of Mr.Javed Akhtar….(I have done changes in the last line to suit my article)

Jindagi Hey to Khwab Hey, Khwab Hey to Manzile Hey,

Manzile Hey to Fasle Hey, Fasle Hey to Rastein Hey,

Rastein Hey to Muskile Hey, Muskile Hey To Honsla Hey,

Honsla Hey to Vishwas Hey, Ki Leader Hamesha Jit taa Hey.

My Personal Call:-

Time and again I have observed…..Traders -Don’t have Strategy, don’t have Patience, No Idea of Trading levels. Biggest Problem in INDIA is every 2nd person has become Analyst and started his own service!! If you are our regular reader, you know our approach and our track record.

Just ask one single question……WHY YOU ARE INVESTING? If you can answer the same in one line….I suggest you leave How to invest on us. Just follow us.

Do write to us.

You can follow me @hiteshmparikh on twitter or on Whatsapp on +91-9869425399.

Live With Passion…Invest With Passion.

Hitesh Parikh.