The name of this article sounds quite familiar....Isnt it? At least so within the investor and trader community.......Yes......you guessed it right......This is the book written by Benjamin Graham, which influenced the great Warren Buffett to make a career in trades and investments......The question is how do I know? Well, thanks to so many biographies written on Warren Buffett these days, we all (millions of investors worldwide) have become the so called "Intelligent Investor"........Huh!
Almost every other day, I hear people say "Why do you look into technicals....Dont look into the prices.....Look into the value of the company.......Try to follow the Great Warren Buffett....I look into the comapany valuations.....I look into the P/E, Book Value, Management, etc etc"......
Then they will come and say "Hey, the markets have crashed.......Company X now has a great value, its P/E has come down, it is an excellent stock......I am going to invest in this now, since I missed it in the last bull market and I will become a millionare in 5 years.....I am a long term investor....." Doesn't these sound childish? At least to me, it does......Its as if reading few books on Warren Buffett will make all investors the Next Warren Buffett......Its like assuming a budding young cricketer blindly following the walks and talks of Sachin Tendulkar will score the next 10000 runs in test cricket......
If investing in stocks after it has corrected would give you excellent return, then think of a person who had invested all his wealth in HFCL after its 2000 initial crash from 2500 odd levels to 1500......That fellow has probably lost everything by now.......
Dear friends, I might be wrong but to my mind Mr. Buffett never used to invest just like that.......He used to pick up stocks from nowhere......Eg, he invested in PetroChina when the stock was not listed and sold it when it listed with Trillion $ market cap.......To my mind, the key to become a successful trader and investor, is the right attitude....the capacity to think beyond the four walls of your room.......Find the company where others could possibly not think before you.....Listen to your own plans and create your own methodolgy.......
Always remember, if diamonds were as plenty as pebbles, they wouldn't have been so valuable.........
Almost every other day, I hear people say "Why do you look into technicals....Dont look into the prices.....Look into the value of the company.......Try to follow the Great Warren Buffett....I look into the comapany valuations.....I look into the P/E, Book Value, Management, etc etc"......
Then they will come and say "Hey, the markets have crashed.......Company X now has a great value, its P/E has come down, it is an excellent stock......I am going to invest in this now, since I missed it in the last bull market and I will become a millionare in 5 years.....I am a long term investor....." Doesn't these sound childish? At least to me, it does......Its as if reading few books on Warren Buffett will make all investors the Next Warren Buffett......Its like assuming a budding young cricketer blindly following the walks and talks of Sachin Tendulkar will score the next 10000 runs in test cricket......
If investing in stocks after it has corrected would give you excellent return, then think of a person who had invested all his wealth in HFCL after its 2000 initial crash from 2500 odd levels to 1500......That fellow has probably lost everything by now.......
Dear friends, I might be wrong but to my mind Mr. Buffett never used to invest just like that.......He used to pick up stocks from nowhere......Eg, he invested in PetroChina when the stock was not listed and sold it when it listed with Trillion $ market cap.......To my mind, the key to become a successful trader and investor, is the right attitude....the capacity to think beyond the four walls of your room.......Find the company where others could possibly not think before you.....Listen to your own plans and create your own methodolgy.......
Always remember, if diamonds were as plenty as pebbles, they wouldn't have been so valuable.........
No comments:
Post a Comment