Sometimes silence speaks much more than words. Since my last post, nothing much has changed in terms of fundamentals. People on the inside already know what is going to happen. Things are just starting to take shape. I have always maintained that the best way to win an argument is not by arguing, but by action. I have seen people wasting time arguing amongst themselves about how the stock they are investing is much better than another stock, why waste time when you can make money instead by investing? We invest not to prove someone right or wrong or for the sake of academic theories, but to create wealth.
Over the years, things have become easier for people like me – long term value based investors. Thanks to the explosion in technology, internet forums and business news channels more and more people are unable to think long term. This has led to wild and violent falls in stock prices of as much as 25% on a single day, just on the basis of some negative news or court cases, which might be of a temporary nature. Internet trading makes people take decisions within seconds – this was not the case earlier. Because of all this we can take advantages of such situations.
For example I remember when analysts across TV channels were criticizing Hindalco for taking over Novelis. Anybody who invested in Hindalco, that time would have been a very happy man. It has been a good company for me and has added to my Happionaire experience. The AC studio sitting analyst will know much less than someone who has put his blood and sweat to build a business.
Once again, when markets are rising most people feel tempted and a sense of desperation to rush in a put money. They feel left out, and can’t resist temptation to buy. Over the years, anyone who has been a part of the market will tell you how dangerous such panic buying can be. Money doesn’t come to people who are constantly scared and afraid. Be open, happy, large hearted and confident – you will automatically start attracting wealth.
The best investors are the ones who do the least amount of activity. To be a good investor, you need to have hobbies and interests outside of investing or still better would be to run an actual business. Warren Buffett plays Bridge for over 12 hours every week. I love writing and getting people addicted to the right type of investments. Sitting in front of a screen with numbers and watching the business channel 24 hours, isn’t really what a fulfilling life is about and is definitely not a great and recommended way to create wealth.
As the crisis develops in Europe, UK and in parts of the Middle East, a lot more money has been flowing from there to India. A lot of NRIs there are afraid of a falling Euro, Pound and unsure of what will happen to the Dollar. Plus, parking their money in a fixed deposit is not giving them any interest, similarly the real estate of stock markets, aren’t exactly promising.
This money if invested rightly will obviously give much better returns and will also be a safer long term choice. But at the same time, if invested in an unbalanced manner and on the basis of ‘tipsters’ will definitely lead to huge losses.
I am reminded of something very relevant to every investor in today’s global economic environment. When Lord Krishna offered the choice between having his entire army or just himself alone, to the Kauravas and Pandavas just before battle, we all know that the choice of the Pandavas was the wiser one. Arjuna chose Lord Krishna to be on their side, and was the charioteer filled with universal wisdom and knowledge, while Duryodhana chose a massive army of soldiers and in-spite of this lost.
Every investor today needs to forget having an army of advisors and watching hundreds of news channels, but just needs to have the power of wisdom and knowledge with him. Probe deeper inside you and you will find it. It is universal and within all of us. Cut out the noise around you and listen to the silence.
Soon when the world panics, it will be once again time for a select few to create extraordinary wealth. I hope each and every Happionaire uses this opportunity.
Keep smiling and happy investing!