Our Investment Experiences with Mr.Tendulkar and Mr.Dhoni
06
January 2015
Our Investment Experiences with Mr.Tendulkar and Mr.Dhoni
Greetings
from Hitesh! Thanks for making our last post “ना खुशी खरीद पाता हूं, और ना गम बेच पाता हूं!” a super hit. Most have liked the same and it has become the most forwarded
in last two days. Thanks a lot for the same. Today I am going to share my
Investment experiences with Mr. Tendulkar and Mr.Dhoni.
Let me start with some facts.
Tendulakar
played from 1989 to 2013. He played 200 Test Matches and he has the recognition
of the best BATSMAN ever.
Dhoni Played
from 2005 to 2014. He played 90 tests and he is known for as a shrewd captain
and a player. In many respect – he had the
potential to out-smart Mr.Tendulkar. But he retired last week!!
Let us see Cricket V/s. Investment?
As batsman
your goal is to score maximum run while saving his wicket and as an investor
your goal is to make maximum money on your investments while conserving your
capital.
As a Batsman
when you want to score a single run / 4s or 6s / 50s or 100s you need two
things – skill set and staying capacity on the ground.
Same way
when you invest and you want to make tons of money – you need Skill set and Capacity to hold your investments.
How Normal Investors Plays in the market?
Most normal
investors believe that to be successful – you just need
Knowledge (Right information or right TIP!!). Do you remember what happed to
PAKISTAN in 1971-72 war against India– in spite of
having the latest technology? Watch movie BORDER, if you have not.
They do not
have the right mindset and skill sets to execute the above
TIP!!
Most small investor’s want to make fast money and to achieve that goal – they go for Margin Trading. In Margin trading – you have to pay 10% to 25% margin and you can create a
position for 100%. In other words, if you have Rs.1 lakh – you can buy shares worth of Rs.4 lakhs!! When market goes up
– he ends up making more money than the guy who has just
invested Rs.1 lakh.
The problem
comes when market falls – the way it
has fallen today – he is
forced to pay the differences or close the position with a huge loss (loss on
Rs.4 lakh!!). He gets wiped out and retires like Mr.Dhoni.
But if he
had purchased shares worth of Rs.1 lakh only – he can hold on to his position as he is not required to pay
any additional money when market goes down like this. He has the holding capacity
in this case.
Most important
quality which contributed to MR.TENDULKAR’s success
was his staying capacity in successes and failures!!
What is our Call on Market?
We have
always maintained that this is a BULL market but it will be volatile depending
on the issues that come up from time to time. Today it is GREECE. Tomorrow it
can be PAKISTAN and things like that.
The
challenge is to have holding capacity. You can increase the holding capacity
gradually.
Great Opportunity for Fresh Investors:-
In a typical
bull market – fall leads to new
highs over a period of time. If you use the fall to accumulate stocks – you make great money over a period of time.
In fact, many
new investor friends who joined us in the last month – were happy as they got inaugural discount in the first week
of 2015.
What Next?
Destiny
Management is an example of staying capacity in last 25 years. We have seen
best of TEJI and worst of MANDI. Many came and gone – but we are still on the PITCH.
If you like
our consistency in TEJI and MANDI – we suggest
you follow us.
Follow me on Twitter @hiteshmparikh Or on Whatsapp - +91-9869425399.
Live With Passion…Invest With
Passion.
Hitesh Parikh.
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