Are you making the same Mistake what SALMAN KHAN Made?

06 May 2015

Are you making the same Mistake what SALMAN KHAN Made?

Greetings from Hitesh! Today Mr. Salman Khan became the news item for Media guys. Finally he got the punishment for his wrong doing in 2002. As usual, I see every news and events from Investment Perspective. Let us see one by one.

Justice Delayed is not Justice Denial:-

He got the punishment after 12 years!! While he was out of the jail – many were of the opinion that due to his position he may get out of the punishment – but he got it. Look at Sanjay Dutt /Subrata Roy – all got their shares of punishment.

Let us go back to 2002:-

Not a single Hindi movie was grossing Rs.100 Crs in 2002. It was a great dream to achieve at that time. Today Rs.300 Crs is a new normal. Salman Khan is a leading actor in Rs.300 Crs club today.  

Had he surrendered in 2002, he would have been out in 5 years or may be less due to his self confession but he did not.

He suffered mental tension for last 12 years and wasted crores of rupees on Lawyers and other expenses. At the end he had to accept the verdict.

Learning Lessons for Investors:-

1.  Small investors get fed up if the shares prices do not move for a year or two. But if the company is performing – the price will move up sooner or later. If you look at Salman Khan as a Share – it was quoted at say Rs.50 Crs per movie in 2002 today it is worth Rs.300 Crs per movie.

If you keep holding good company – do not look at the prices in short term. Just have patience and hold it for little longer.

2.  Dale Carnegie taught the basic lesson in Human relationships. He said – If you are wrong – Admit it Quickly and Admit it Emphatically. Same goes in Share market also. If you are wrong – just get out of the share. Do not hold it. Do not average it. You can’t have EGO with the market.

Mr. Khan had an ego that nothing can happen to HIM and just see JUSTICE is nobody’s Father in Law.

3.  Surround yourself with right kind of advisors and friends. They are the one who can do the biggest harm or biggest benefit to you. I am sure – some of his friends would have advised him to surrender but most would have said – Do not worry – DEKH LENGE.

When Share price goes down and you seek an opinion – your friendly brokers may say – it’s a correction and you see your capital going down by 50% to 90%!!

When share prices moves up and you seek an opinion – your friendly brokers may say – it’s a Operators game and you sell it only to see that share has moved up by 10 to 15 times!! I am sure this would have surely happened with you.

Many times – Small Investors also follow the DEKH LENGE Advise and as a result they also die as a small investor.

Right advice is not always FREE and not the one you always want to listen!!

What is my personal call?

Do not allow your mistakes to compound the way Mr.Khan has done. At the same time allow your good deeds to compound and it will make your life worth living. Apply the same logic to Investments and you will bless me for life.

Do write to me.

Have a Great Week Ahead.

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Live With Passion…Invest With Passion.

Hitesh Parikh.