How Top Analysts and Economist Study An Investment Opportunity?

May 27, 2014

How Top Analysts and Economist Study An Investment Opportunity?

Greetings from Hitesh! I am happy with the responses to my last email - Do You Think Your Friend Is Jealous of Your Success? It was a huge hit. I thank you all very much for your time and words of appreciations. I have received many requests to ask me the way I find and study the investment opportunity. How I spot the trend way ahead of the masses?

Before I deal with that, let me deal with the above subject. It will give you food for thought and also you will have comparative base to judge which approach is better.

How Top Analysts and Economist Study An Investment Opportunity?

Analysts as the name suggest do the analysis. They analyze the company with respect to Industry / peers / past performance/ present performance /future performance / Eps growth / Book Value / P/E Ratios/ Economic Value / NAV / Fair value / Management competency and things like that.

If the company is doing well in most of the above parameters, they give it buy recommendation!! Simple!!

Our dear economists are also not behind these guys. They also study the economy seating in their AC cabins and give their opinions.

Tom Peter’s Experience:-

In 1982, Tom Peters did detailed study “In search of Excellence: and established him as a great consultant. They gave a list of 43 “excellent” companies in their report.

In 1984, Business Week ran a cover story “Oops! Who is Excelelent Now”. Out of 43, 14 were in serious financial trouble!! What happened to Excellent Companies in just 2 years??

If you look back, you will find many examples such as above.

The Irony:-

It is most painful moment for me when I see my well qualified friends believe them blindly. In fact, they feel proud to follow and qoate them!! Height of their blind faith is observed when they know that their past calls have not been accurate….but they still find it difficult to leave them.

When somebody followes rituals as per his/her religious belief or follow other oriental sciences such as Astrology, these well qualified guys leble them persons of blind faith. Do they ever look into their beliefs in so called Analysts and Economists?

Synthesis against Analysis is our way

Let us take an example of your wife……she has cooked your favorite dish. She spent time in shopping the ingredients and prepare the recipie for you. She just wanted to see a Smile on your face.

Now, you start eating the food……and first sentence comes out of your mouth... “Salt is more” The hard work to prepare and present that food on dining table is gone….and just one line analysis…Salt is more!! Does this explain the increase in number of Divorces??

Take another example……some time back……out of the top 10 richest man in the world, 4 or 6 were college drop out. They had the most qualified guys working for them!!

If you follow the logic of Analysts……most qualified guys should be the richest guys and bosses and not the college drop outs.

Chess is the best way to learn Synthesis

Chess board presents the total playing area / total number of players and with their roles. If you have only concentrated on checkmating other’s king, 99% you would have lost the game. Most of the times King gets checkmate by Pawn!!

This game teaches you to look the game in totality with the vision of what other guy is doing!!

Compared to chess board……market is full of known and unknown players. Their role is not defined. What they do now and what they will do in future is unknown. What’s more -events not related to market can also affect your calculations.

So, the best analysis may fail.

How do we play the game?

We see the ground realities of the market and market players. We try to understand various players’ compulsion to play or not to play in the market. We study the mass psychology. We look at the planetary positions and study their mood also. When we combine all these, we can tell you with reasonable accuracy about TEJI or MANDI in the market.

We do not stop here……we study individual’s capacity to take benefit of the market opportunities. Teji in market does not mean Teji in your portfolio and vice versa. We take all these steps to guide you effectively.

Studying this way, we had told about 35000 Sensex, way back in 2009-2011…..our analysts are talking about it now!! Our blog is full of such insights and study. If you have time and interest, you can read and relish the same.

My Personal Call:-

The purpose of above article is to give you comparative view. You can choose which ever you think is good for you.

If you like our way and if you like to try it, you are most welcome to write to us. We will be happy to help you create wealth for you and your generations.

Our experiences shows that those who have been with us for just 3 years……they have never needed any help of Analysts and Economists.

Follow me on Twitter @hiteshmparikh Or on Whatsapp - +91-9869425399.

Live With Passion…Invest With Passion.

Hitesh Parikh.