This
is the time, when the ones who had invested in equities and held on to it, feel
vindicated. The past years have been tumultuous but I personally invested
continually and today my feeling is not that of but vindicated, but that of
assurance. Nothing as changed in the model since I began investing more than 2
decades ago. My first investment was in 1993 or so, in the Morgan Stanley
mutual fund. This was the first time such an idea was marketed and I remember
public frenzy to invest in it. It was supposed to be first come first serve,
people stood in long que for hours together (heard people stood overnightJ),
what followed was my first learning experience.
There is not dearth of
opportunities. It’s never an opportunity missed. Since then I have attended and
read numerous behavioral investing classes and books. It’s taken a long time
before my old faiths were broken and new ones instilled. Looking back, I really
enjoyed losing money, the wealth of information that alone has taught me
is inexplicable.
Today I stand totally
confident, that equity is one of the best opportunities in our generation,
provided one has developed the right mindset or philosophy. To me the most
important ingredient to be successful in investing, is to develop the right
philosophy. There is no other financial sophistication required. The world just
comes around.
There always exists a
possibility of Market making a huge advance as much as it may go in for a
significant unexpected collapse, making the returns in the range of its
average. Where then do we get to lose huge money? It is very difficult, a task
that can only be accomplished by the over thinking monkey mind. Learn to master
it and success is our way.
Coming to more mundane
stuff, I am currently taking an exposure in small company which is operating in
a murky industry, where there are no scruples. I stumbled upon this company
surprised by the way the promoters handled this business, so very different and
refreshing from the heard. This is very small cap company, hence the reward
risk ratio is not very encouraging and I am hoping to see some corrections. I
am fairly bullish that this is going to be a multi-bagger with zero debt on its
balance sheet. More on it soon.
The markets have run
up very fast in Anticipation, a normal one to follow Despair. (Please see I am
oblivious here about the reason.) Does it mean the market is riskier than what
it was 6 months ago? The answer to me is NO. If you say it is risky, it always
was and will always be.
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