Beggar’s Dilemma – to donate or not? What should small investors do now?

22^nd November 2024

 

Beggar’s Dilemma – to donate or not? What should small investors do now?

 

Dear All,

 

Thanks for words of appreciation on our accurate predictions on Adani ji. Today we are taking up another most important learning point in the journey of a normal investor. Let me share a beautiful story before that.

 

Beggar’s Dilemma – to donate or not?

 

This is a story of a BEGGAR in the old time. He took some RICE and kept it in his Begging Bag and started his business one morning. As luck would have blessed him – he saw the King's chariot coming towards him. He had never seen the King so he was excited with the super donation from the King. He became happy and was waiting for the chariot to come near to him. He expected a bounty from the King.

 

As the King saw this beggar he got down from the  chariot and asked for the donation from the beggar. Beggar was cursing his luck. Rather than getting a bounty – the king was asking from him. 

 

King said that the ASTROLOGER had asked him to take a donation from the first person he meets in the morning to save the KINGDOM from the enemy. King begged him and said give me anything you have. 

 

Now, Beggar had no habit of giving to anybody. He was shocked and couldn't say no to the King also. Very reluctantly he removed rice from the Begging Bag and gave it to the king. He gave just one RICE to him. King thanked him and went back. 

 

Now, the Beggar went to the town. He was very unhappy with his morning experiences. For a change his bag became full by the evening as he got good donations from others and he went home. His wife was very happy to see that the bag was full but the Beggar was unhappy that he did not get the donation from the King and he had to give him one rice!!

 

His wife emptied the BAG and they found one rice of gold. Looking at this Beggar started crying loudly. He was unhappy till now but now he was crying like anything. His wife asked what happened. Beggar told the whole story and said – he should have given whatever rice he had to the king. Had he given all the rice – he would have got an equal amount of rice in gold. But now nothing can be done. 

 

How does this apply to the small investors?

 

Small investors have a typical behaviour. They always say they will buy when the market goes down in future. But when the market goes down – they don’t buy. When the market goes up – they start cursing their luck for not buying shares when the market was down.

 

Can you relate this to the BEGGAR’s experience? 

 

This is the reason they remain small investors for generations. 

 

What is our call? 

 

Investing is the best when the market is giving the discount. Current market is giving discounts. Find out all the companies which have sound business / good results and effective management and buy them in all dips. 

 

You will not cry like a beggar when the market goes up next time. 

 

If you have a dilemma in what to buy – you can take our inputs. 

 

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

 

Learn a Lesson. Live with Passion & Invest with Reason.

 

Hitesh Parikh.