Rain Rain Go Away, Little Johny Wants to Play

July 4, 2014

Rain Rain Go Away, Little Johny Wants to Play

Greetings from Hitesh! Till now, FIIs were raining market with their dollars, now its turn of Rain God. Rains started and market is touching new high every day. All Is Well.

Looking at rain, I remembered two poems of my child hood. One is mentioned above. The other is in Gujarati Aavre Varsad – (welcome rain). Thinking on them I realized the impact they have on our mind. Let me deal with it. First we will deal with English one.

Rain Rain Go Away, Little Johny Wants to Play:-

Read and read again. You will find that Johny wants to play, provided rain is not there!! Johny is raised with many such conditions. If you behave nicely, mom will get you chocolate!! If you get good marks in your exams, dad will get you a surprise gift!! You can add as many as you want.

Johny is raised with conditional love/conditional living and conditional enjoyment. He does everything with an Aim / Goal / Benefit/ Profit. If the goal is not achieved, he thinks, he is a failure!!

He chooses a study, because there is a great scope in that line. He chooses a job, because it promises him a great future and not because he really like that work. He marries a girl, because Horoscope matches or she is only daughter of father and not because he really loves her.

When this Johny comes to Market, he sings the same poem in different words – Lose lose go away, little Johny wants to invest!!

Biggest challenge of Little Johnys:-

All johnys have been taught the same poem!! All johnys want the plum career, rich father in law, well paying job and profit in market!! This leads to competition among them and you know competition kills.

Traditional way to see success and failure:-

Just now 10^th and 12^th results are out. Students are celebrating their results. Some have got 70% to 90% plus. All of them consider that they are successful!!  There are some who got less then 50% and they consider themselves as failures!!

What happens in Reality?

Questions paper is prepared by somebody!! Answer sheets are checked by the others!! These guys have set of answers with them. They are asked to give marks accordingly. If your answers tallies with their sheet, they will give more marks and vice versa. Also, their emotional status while checking your answer sheet will affect your marks.

Same thing happens in market. Company is run by Management. Price is determined by market!! All you have to do is to see the performance of the company and buy the shares. Market will give the Price depending on the expected performance of the company/economy and its mood etc.

Marks are given to your answers and you consider that as your success and failure!! Same way when shares price go up, you considers it as your success.

In reality what you consider your success and failure is a success and failure of the system/market. Your self worth and happiness has nothing to do with these outside events. But since you have been conditioned / taught to link happiness with your success, you remain unhappy till you die.

How Warren Buffett deals with this?

He knows his limitations. He does not have greed of success and fear of failure. He never predicts the company results. He never predicts the market movements. He never predicts the share prices. He just buys shares when everybody is selling and sells them when everybody is buying.

Following this principle, we told our clients and our readers to buy since 2009!! We have been telling about 35000-45000 Sensex level since 2009. Now all Johnys are talking about the same.

What happens when you start early?

You got 3-5 years time to park your funds. You can invest as you earn every year. In a given point year your investment is just 20% to 35% of your investible funds. You will have less fear as your stakes are just 20% to 35% and you will have more time to accumulate your chosen stocks. You will sing the other poem….Aavre Varsad (welcome rain).

But if you invest 100% now, as most of the Johnys are doing, you will be in hurry to book your little profit. You will get panicked with little negative changes in market. You will face the competition and you know….competition kills.

What Next?

We are seeing a great time for India in coming 20 years. If you have missed our calls in the past, we suggest start now. Join us. Just invest as we tell you and you will bless us for life.

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

Live With Passion…Invest With Passion.

Hitesh Parikh.