Learning Best Investment Practices from Your Tongue

January 16, 2014

Learning Best Investment Practices from Your Tongue

Greetings from Hitesh! Hope you would have got busy after New Year celebrations/vacations. I wish you all the best for 2014. Recently, I attended a coaching on Human Anatomy. While I was going through the notes…..I just got fascinated by the efficiency of our tongue and as usual I just linked the same to investments. Hope you will enjoy.

Let us see various characteristics/functions of tongue and how it can be applied to Investments.

Testing:-

We carry out mainly two type of test…..

First time eating test:- Your mom convinced you to try particular vegetable or your friend convinced you to try beer for the first time. Depending upon your tastes….you decided to eat /drink further.

Confirmation Tests:- Over a period of time, you develop a particular taste or say your favorite taste. If you get that taste you may eat more. Many times….you tell your wife…. “your food do not taste as good as my mother”. This happens when you look for confirmation.

In investment also you should try various styles/types and you should note the results. More you taste…better you would be in deciding about further course of investments. If I eat the food….you will not have any taste…same way….If Rakesh has bought Titan….you will not get the dividends or if your neighbor has lost his shirt in share market…..you may not lose yours.

So rely on your own TESTS and stick to your own TASTES.

Flexibility:-

Tongue stays amid 26 to 32 teeth…..they all are eveready to crush the poor lady. But rarely do they become successful. This is due to flexibility and risk avoidance by tongue.

In investment also…..there are FIIs, Policy Makers, Corporate Investors, Big Investors, Insurance Companies and lot many nuisance makers in the form of Media. They all together or single handedly are capable to ruin you and your investments plans. So, you need to be flexible and should follow your stop losses.

Keep Close Touch:-

Though tongue stays around Teeth…it cleans them….it heals them with its touch.

Same way……while investing, watch what big investors are doing…..just follow them. You need to find out your taste of investments from their menu.

Eating Without Hunger:-

When you like the taste of particular food, you go on eating that food whether you are hungry or not. You know what happens due to over eating.

Same way, do not go out of your limit while you invest. Know your appetite.

Life Time Free Maintenance:-

Tongue is the only organ which stays without much maintenance for your life. You may need maintenance from your eyes, ears, heart, knees, teeth but tongue is maintenance free.

In this sense, equity investment is a maintenance free investment. Somebody is taking botheration of running the company and you just enjoy the fruits (dividends and price increase) of the same. Find out such businesses and enjoy.

My Personal Call:-

Mr.Charles D Munger, partner of Mr.Warren Buffett, follows various sciences and uses the logic while studying the investment ideas. We are trying our bit. Hope you like the same.

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

Live With Passion…Invest With Passion.

Hitesh Parikh.