Buy Buy Stocks or Bye Bye Stocks – what is your View Now?
Friday,
18 May 2018
Buy
Buy Stocks or Bye Bye Stocks – what is your View Now?
Greetings
from Hitesh! A normal guy comes with the two options in the market. Either he
would be aggressive in buying stocks as if there is no tomorrow or he would be
aggressive in selling stocks and get out of the market for ever. The funny
thing about him is he comes in BUY MODE when the TEJI is about to get over and
he comes in the SELL MODE when Mandi is about to get over. In both the way he
ends up losing.
What
happens when you have two options?
We
will call first option as THESIS and the second option as ANTI-THESIS. Say
first option is BUY then second option is SELL.
The
great Phycologist of the last century Mr.Sigmund Fred always talked about EROS –
love and sex and his total theory of human existence was based on the sole
purpose of this. As he grew old he realised another aspect and that was THANATOS
– the instinct to DIE. He took long time to realise this and it became ANTI-THESIS
of his THESIS of EROS. His findings was 100% opposite of what he had talked
through out his life. It was proving him 100% wrong about all his earlier findings.
But the guy was HONEST and GUTSY, he confessed about THANATOS also. Life did
not permit him to live long enough to find the SYNTEHSIS between the two and he
left the half way to his theories.
Our
rishis have been smart to talk about SYNTHESIS in life and they have said that LIFE
and DEATH both are elusive. The main thing is SOUL and it keeps on taking newer
and newer birth and keeps his journey alive.
How
SMART investors also makes the same mistake?
In a
16th May letter by Mr.Porinju to his clients, he says – “To be
very frank, I am little baffled this time looking at the extent of erosion in
the portfolio value in such a short period. However, I feel comfortable looking
at the VALUES of what we own rather than PRICES we see today.”
He
is also talking about two aspects only – Price V/s Value.
This
is like SELF COMFORTING and it lacks the SYNTEHSIS.
But
if you go to MASTER INVESTOR, he always talks about SYNTHESIS – He sees the picture
in 3D.
We
always have 3 elements – Proton / Neutron and Electron. Brahma, Vishnu and
Mahesh. Satva, Rajas and Tamas. Adhi, Vyadhi and Upadhi. Past, Present and
Future. Above all are the best examples of SYNTHESIS.
The
only guy who has been consistently applying this principles in the field of
investments is Mr.Buffett. Read all his letters and you will never find he is
talking about the two factors – Value V/s Price. He has gone one step ahead and
talked about BUSINESS OWNERSHIP. He says you are the OWNER of the business to
the extent of the shares you own. He says focus on business. Price and Value
will keep on moving in opposite direction and it will mis-guide you in your
investment decisions. The soul of investment is not Value or Price. The soul of
the investment is BUSINESS MODEL of the company you hold. He says look at the
Business Model – has any significant change happened in it due to market
conditions? If not, just hold the business. He has been living very active investment
life at 80 plus because of his way of doing SYNTHESIS in each of his life and
investment situations. You must read his biography – The SNOWBALL to understand
his master way of doing SYNTHESIS.
What’s
in it for NORMAL investors?
If
you are also in BYE BYE STOCKS mode, then you are missing the 3rd dimension
of synthesis. Take each of your company and check its business performance
rather than confusing about value and price. Once you look at your portfolio from
the above angle, you will have a holistic view of the total.
What
about PRICE sensitive GUYS?
Say
you are not ready to look at the SYNTHESIS and all your focus in PRICE and only
Price. What did we tell you?
I
have been inviting most guys to invest since 2009. They all came in 2017. In May
2017, I had written my post – ARE WE HEADING FOR A CORRECTION LIKE 2008 – part 1.
Most guys were not convinced with our vision and they relied on free advice and
they are facing the music due to that now. In October, 2017, we wrote – Are we heading
for a correction like 2008 – part 2 and we gave the time of MANDI till Janaury
2020. In spite, of such a categorical guidance, most missed the reading.
Today
NIFTY and SENSEX are stable or moving up but most portfolios are bleeding.
So,
if you are price sensitive type, you need to invest some more money in
appointing your personal consultant and listen to him.
Can
you give some SOLID example of Synthesis in personal life?
Look
the way you are raising your Son or Daughter. You are spending lakhs on school
fees and also pay a bomb for his personal tuition whether he is in 1st
standard or 10th standard. You have no worry for any RETURN on
investments and if at all you have any expectation from your son or daughter in
your old age – you have absolutely NO GAURANTEE that he or she will take care
of you (PRICE ASPECT). There
is also no guarantee that he will become top ranker and make you proud due to
all your educational and extra-curricular investments (VALUE ASPECT).
Still
you go on taking all the troubles for them. Why? Because he or she is YOUR SON or DAUGHTER!!
Am I right?
The
SOUL is that he is YOURS. So, you know how to do SYNTHESIS in personal life.
Just extend it to INVESTMENTS.
What
will happen if you apply SYNTHESIS to investments?
The
way you look at your own son or daughter, you must look at your hard-earned
money. Your money is also your SON in your NEED. In fact, it is a 6th
sense which will keep your other 5 senses active. Your son may not be available
when you need him the most, but money will be available 24X7, if you have
properly invested the same.
The
way you appoint personal tuition teacher for your son, appoint your personal
investment consultant and you will see the things in 3 dimensions. If you like
our way of looking at investments, you are welcome to appoint us. Do contact.
Have
a GREAT WEEKEND.
Follow me on Twitter @hiteshmparikh or
on Whatsapp
- +91-9869425399.
Live With Passion…Invest With
Passion.
Hitesh Parikh.
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