“……now I am thinking to invest in Direct Equity. What do you suggest?”

28 January 2018

“……now I am thinking to invest in Direct Equity. What do you suggest?”

Greetings from Hitesh! We are approaching BUDGET day and there are lot many speculations going on about what it will bring. We have no time to speculate. We have a simple way to know what he will declare in the budget. Our way is to wait for the budget announcement and we will come to know VERBATIM.

I keep on receiving questions and I deal with them as per the time. Since the market is going up one side, many have asked me about my suggestions to invest in direct equity. One of the new reader has written as follows…..

Question from a READER:-

“I have been investing in Small Savings and Mutual funds since last 20 years. Recently a friend of mine forwarded your link. I read many of your past posts on your blogsite. I am really impressed with your track record and now I am thinking to invest in Direct Equity. What do you suggest?”

Many of the guys have the similar questions and that makes me invest my time to deal with the above question in details.

1.  From the facts – “I have been investing…..” – its not clear that those investments have been done with proper thinking or just like that. 99% of the time – they would have been done in the name of TAX PLANNING or to keep up with the common friends or neighbours. My experiences tell me that had he done thinking at that time – probably he would not have done investments in them.

2.  Second part of the questions says “Now I am thinking…”. This is something which is not going well with the last 20 years HABIT. He has developed a HABIT to invest in a way which was devoid of thinking and now he is thinking to adopt a NEW WAY.

What is the exact problem?

By following his previous way – though without applying much mind – he has collected some wealth and he thinks he is successful in making money following this way. But when he read my posts he realised that he could have done much better had he just invested little time in learning the fine art of investments and developed his own style of investing.

Now, if he goes for the DIRECT EQUITY – he would need to think on his own, study the company and decide the proper action plan. This was not done in the last 20 years and he can’t pick up the new style overnight.  

Moreover, thinking is a very special ability and most guys would want to avoid that. If I tell xyz company looks good to me to somebody, then the opposite guy would expect me to tell him what exactly he should do? He would expect me to tell him how much to buy, when to buy and when to sell? If the guy has the thinking capacity, he would study the idea given to him and decide his on investment strategy based on his own priorities. This require lot of thinking which he is not ready to do.

What was my reply to the gentleman?

I am happy that you have started thinking about investing in DIRECT EQUITY. It’s a good thought. My suggestions is that you DECIDE now about investing style. Once the decision is made you can approach me and I will help you equip with the proper skill sets and mindsets to deal with the DIRECT EQUITY.

How MIND takes you for a ride?

From 9000 Sensex in December 2008, we have been asking to invest and we were giving target of 35000-45000. Many guys have been just reading our post and did not follow up with the sincerity. Now, Sensex made 36000 and they are realising that THEY SHOULD HAVE LISTENED TO HITESH PARIKH. Now, there is no UNDO/BACK button in the market. Your mind will tell you if the market goes down this time – we will surely invest!! This will keep on happing as the MIND is always fluctuating.

Experts are talking about 100000 and 150000 SENSEX in next 5 years. If you don’t want to repent in future the way many are repenting for missing opportunities now, I suggest you still have a time. Be with us for 3-5 years and master the FINE ART of INVESTMENTS. I can give you one promise – your generations will bless you for listing to me and developing your own investment style.

Wish you all a very happy Sunday.

Follow me on Twitter @hiteshmparikh /  WhatsApp - +91-9869425399.

Live With Passion…Invest With Passion.

Hitesh Parikh.