Thursday, November 23, 2006
Patience...
“Once we act, we forfeit the option of waiting until new information comes along. As a result, not acting has value. The more uncertain the outcome, the greater may be the value of procrastination.” - Peter Bernstein
Patience is a key element of success. – Bill gates
The outcome we are waiting for: The Markets to Tank (Correct or Consolidate are mere euphemisms)
Till when one we should wait: Well before the markets open opportunities of investing in stocks you like as low as 0.5-0.75x.
The higher the markets go from these levels (13,600) – the greater will be the fall, the greater the value of procrastination. And yes while you might be saying that there is no bad news around , why should the markets tank.- the fact is it is somebody who has to one day say that the KING is NUDE, and it could be a kid.
So collect all your cash, so that when others are panicking you are gathering your favorite picks.
And Yes WAIT!!! WAIT!!!! WAIT!!! WAIT!!!
Monday, November 06, 2006
Markets- Dizzying Heights
People like crowds. The bigger the crowd, the more people show up. Small crowd, hardly anybody shows up. -Gallagher
The same is so true for the stock markets….when they are going up and everybody wants to play the game. Many of them are their just because everybody else is their…because being invested in the markets is the in thing. When everybody is buying multi-baggers, why should one stay away and all concepts of risk are thrown out in the dustbin.
The way to make good money in a Bull market-
“Avoid making bad investments – dump 90% of the stock ideas in the bin without even reading them.
The current state of the Equity markets can be summarized by:
There are moments when everything goes well; don't be frightened, it won't last. -Jules Renard
Trading at 20 times trailing earnings – the markets scare me but I have not been here long enough to know a lot about it but I know one thing better be scared than lose. They are good ideas still…but I know they will be better ideas once there is no crowd.
The same is so true for the stock markets….when they are going up and everybody wants to play the game. Many of them are their just because everybody else is their…because being invested in the markets is the in thing. When everybody is buying multi-baggers, why should one stay away and all concepts of risk are thrown out in the dustbin.
The way to make good money in a Bull market-
“Avoid making bad investments – dump 90% of the stock ideas in the bin without even reading them.
The current state of the Equity markets can be summarized by:
There are moments when everything goes well; don't be frightened, it won't last. -Jules Renard
Trading at 20 times trailing earnings – the markets scare me but I have not been here long enough to know a lot about it but I know one thing better be scared than lose. They are good ideas still…but I know they will be better ideas once there is no crowd.
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