What Drives Your Investments – Memory / Dream or Reality?
14 December 2014
What Drives Your
Investments – Memory / Dream or Reality?
Greetings
from Hitesh! I am happy with your responses on my last two articles - It’s Official now – Mr.Modi is FEKU as far as Swiss Money Is Concerned and 100% Correct Market Call to Our Subscribers – Time and Again. Thanks for being my
regular reader. In the weekend I came across - The Decision Book - 50 Models for Strategic Thinking – by , Roman schäppeler, Jenny Piening .
As
the name suggest the book deals with the Decision Making in complex scenario
and complex situations of the life/ business and investments. I am going to
share one decision making model from the same which I have observed all people
applies in the field of investments.
The Model Name is Energy Model:-
Where
do you spend Your Energy / Your Time / Your Resources and Your Money in
particular?
It
has given three classifications in the same.
Memory Driven:-
When you spend your time / resources in following proportions – 30% for Future
/ 30% for Present and 40% for Past.
Dream Driven:- When
you spend your time/ resources in the following proportions – 5% in Past / 30%
in Present and 65% in Future.
Reality Driven:-
When you spend your time / resources in
the following proportions – 10% in Past / 20% in Future and 70% in Present.
Now,
let us see how does this impact your investment decision?
Memory Driven Investor:-
He
relies on old charms and past success. He is not ready to look at the current
position of the company. Eg. In 2007 or 2008 – Mukesh Ambani sold his holding
in reliance ind at Rs.2500 (after it made a high of 3000 something / he had
bought the same at Rs.1400 in 2006). At that time we had given a bold call not
to hold this stock. At Rs.1500 also we gave a sell call / at Rs.1100 also we
gave a sell call and Reliance came down to Rs.650 something. (All our articles
are there with me for a proof)
Most
normal investors were under the old charm of late Dhirubhai and they refused to
follow our calls. In fact, they were questioning our judgments!! The reality proved us the correct!!
When
market was in the grip of MANDI in Dec., 2008, we gave a bold call of 14000
Sensex by June 2009 on 5th Dec.,2008!! They were so much under the
spell of MANDI – they refused to see the Reality of the market and you know
what had happened?
There
are some blind followers of Mr.Modi – they do not want to accept anything
negative about him!! We believe - he was a good leader as a CM and he is the
best leader as a PM under the current situations – but does it give him a right
to fool you? Just see recent SIT findings on Swiss Money!!
All
Memory Driven People would stick to the PAST achievement and past losses……they
do not want to see the reality!! Do you think – if you do this – you can be a successful
investor?
Dreamers:-
These
are the 100% reverse guys of the above type. For them only future exist. During
K-10 scam- most investor did not sell IT and Media stocks because they were
multiplying the P/E with the future EPS and being Happy that Infosys will be
Rs.1 lakh and HFCL will be Rs.5000 / Satyam will be Rs.3000 and so on.
Same
thing is happening today when P/E investors are financing – Flipkart and
Snapedeal kind of companies.
Just
see what has happened to Subhiksha / Big Bazaar / Pentalloon / Mall Culture and
India’s Retail story?
Where
is the footfall? If there is footfall – where is the business? Normal Indian
goes to MALL for Free AC cooling during Summer and to pass times on Sundays and
Holidays!
I
have seen other class of dreamers also – assuming their job will remain intact
and salary will grow in 2 digits year after year – they made some purchases
like FLAT + CAR + Honeymoon in Switzerland + Electronic items etc on Loan. They
all were crying during 2009 to 2013!!
Most
Dreamers – do not understand the difference between a Dream and a Vision! They
stick to the Future achievement and profits……they do not want to see the
reality!! Do you think – if you do this – you can be a successful investor?
Reality Driven:-
As
the name suggest – they focus on the Reality. In a recent interview Mr.Rakesh
was asked to recommend some investment ideas – his classic reply was – “I do
not know – what I will buy tomorrow?” We have covered this interview in our blog
– RAKESH call for market – just go through the same.
He
makes a very good point – he asks you to be present to the opportunities market
gives you at any given point of time. Because he focuses on the PRESENT – if he
goes wrong, he can correct the mistake immediately by STOP LOSS!!
If
you are attached to PAST or FUTURE – you will never follow STOP LOSSES – that’s
our reading with working with so many investors over a period of last 25 years.
Working
in Present makes you HUMBLE to accept that you can also go wrong – in the Memory
and Dreams state – you consider everybody else are wrong – accept yourself!!
How to Follow Stop Loss Model with Us:-
Normally
we provide 1 year and 3 years membership for serious investors who want to make
tons of money. However, we have enrolled many new clients for a trial period of
just 3 months. If you wish you can try that before you commit for 1 year or 3
years.
We will teach you the skill sets for trading and
investing along with the timely calls so that you can make easy money.
What Next?
If
you can see the reality that Hitesh Parikh is consistently going correct on his
calls for market / macro and personal destiny – you will not require any more
reasons to work with him or follow him!!
We
know for sure - depending on your ENERGY SPENDING Model – you will take a
decision to join us or not.
The Opportunity:-
We are open for subscription for 2014
to 2017……join us.
Just write to us. We will come back
to you.
Follow me on Twitter @hiteshmparikh Or
on Whatsapp - +91-9869425399.
Live
With Passion…Invest With Passion.
Wish
you a Happy Week Ahead
Hitesh
Parikh.
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