Sunday, May 9, 2010

Silent Investing

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!

Yogesh Chabria


20 comments:

Rakesh Mehta said...

It was wonderful to read your post after sometime. I read your posts many tiems and lots of times find messages within the lines. AM glad to have waited patiently and have also seen spurts in gold prices.

Anonymous said...

Now that I read your previous posts once again, I can realize how much sense you make Yogesh. Am just starting to see, how arguing to prove a point is useless and how ego is not something that is going to make me much money. I'm a doctor, so sometimes ego tends to get to us.

-Dr. S. Kapoor

Naresh Pisharody said...

Dear Yogesh Ji,
Here u come and how!
Thanks for you blog,
Naresh Pisharody

Ravi P said...

Hello Yogesh ji,

Again words of wisdom. I am glad and feeling much more confident after not investing in this rally. Now I see more value for my money and I know in coming days it will give me much more worth.

A simple thing happionaire's also mentioned in ITHW - When would you like to go on shopping, with sale or no sale?

The sale is approaching us pretty soon. Then would be the time to slowly start looking at our wishlist and start grabbing them over the time. We will pick our baskets and go on a shopping.

Once you're done, go away for a vacation or back to your work. Look at your shares once in a quarter and be informed. I am sure we all have a long journey together and we'll be posting our success stories soon.

Happy Investing!!

A True Happionaire

Vivek Sarin said...

Certainly kept me nodding in agreement. Your views resonate Benjamin Graham's strategies whose wisdom has been proven over the years with markt developments.

ravi makhija said...

Yogesh ji, I remember Hindalco, it really made me very good returns and in the last crash also I thanks to your support was able to make good advantage of it. Hoping to do the same. My best wishes to all other Happionaires here also for the same.

Shabu's said...

Dear Sir,

Excellent thoughts filled with the richness of your experiences in every word. Keep writing...

rajan said...

Dear Yojesh ji: As usual your blogs and thought provoking. Happy days are here again !

Anonymous said...

hi,

nice read . I am a big fan of happionaire way of investing . Already refred your book"cash the crash" to many of my friend. I sent you a mail 2-3 weeks ago . I know you are soo busy, please when you get time , do reply to my mail

regards
lijo

Anonymous said...

It's been a great guidance from well informed and experinced person like you Mr. yogesh. thankx a lot.
Hope Happionaire will make all HAPPY!
Ali

CCGemini said...

How come there no criticisers on your blog ....How unreal..

Jayant said...

It is the sacred duty of the bankers to obfuscate lies in the arcane jargon and continue cheating under the patronage of political class. The efforts of pulling the Real Estate Industry from the verge of collapse have proved futile and this is clearly reflected if we decipher (or try to) the cryptic statements issued to media. In case of one of the banks, the loans were restructured to the tune of whopping Rs 16,796 crore with the permission from Central Bank aka Reserve Bank of India.

Whether these crooks restructure my monthly EMI so easily without a blink? I doubt. Guys, please be patient and let this unseemly drama being played by the Banks and Real Estate Builders/Realty Companies unfolds. Let the RBI help their friends, let the media (TOI) try to pushing the virtues of Teaser Home Loan Rates, Affordable Homes down your throat but please don’t squander your life savings, hard earned money.


SBI net profit drops 21%
BS Reporter / Kolkata May 15, 2010, 0:37 IST


The country’s largest lender, State Bank of India (SBI), today reported a 21 per cent drop in consolidate d net profit for the quarter ended March on the back of higher provisions and operating expenses. On a standalone basis, net profit fell almost 32 per cent.


The bank's provisioning coverage ratio in the last quarter stood at 59.23 per cent, against 56.19 per cent in the quarter ended December 2009.

The Reserve Bank of India (RBI) has asked banks to raise the cover to 70 per cent by September 2010.

“We are in dialouge with the RBI on time period. Roughly, the provisioning requirement will be between Rs 3,500-4,000 crore ,” said Bhatt.

Last quarter saw Rs 1,062 crore of fresh NPA addition from corporates, while on the retail front, NPA reduced by Rs 332 crore.

Out of the standard restructured assets of Rs 16,796 crore restructured under RBI dispensation, Rs 1,616 crore slipped into NPA category up to March 2010, taking the slippage ratio for these to 9.62 per cent, the bank said in the statement.




Provision coverage ratio : It is a measure that indicates the extent to which the bank has provided against the troubled part of its loan portfolio. A high ratio suggests that additional provisions to be made by the bank in the coming years would be relatively low (if gross non-performing assets do not rise at a faster clip).

NPA ratio : The net non-performing assets to loans (advances) ratio is used as a measure of the overall quality of the bank’s loan book. Net NPAs are calculated by reducing cumulative balance of provisions outstanding at a period end from gross NPAs. Higher ratio reflects rising bad quality of loans.

Sunil said...

Hello All,

I must say that there is a mark improvment in peoples opinion over here ... that ALL'S NOT WELL.

Dr. Anil Mehra said...

Why would anyone want to crtisize someone who has been helping us learn for so many years and even now warned us from investing? I had invested in Gold when Chabriaji told us to at around Rs. 14,000 today it is over Rs. 18,500.

CCGemini said...

"How come there r no criticizers on your blog ....How unreal"..
Sunday, May 16, 2010

I was not expecting this to be published.......

rajesh said...

No need to waste time criticizing just enjoy the correction and try to invest and make money.

Anonymous said...

i hate you and your way of investings Mr. Chabria becauze you never give any tips or ways to make good quik returns. what the hell is use for this one year and two year investment knowedlges, most common peoples want to mak quick money fast returns and ejoy life. not become some old man and be retired with money. i jus started investing am in college but you are amongst the worst people to follow and read. wat the hell is the meaning of this whole post.

u might not accept this message but jus wanna let you know this is how i think.

Mahesh said...

I am disgusted by the person's comment's above about Chabria ji who has spent so much time to educate all of us. If anyone with intelligence paid attention, they would have surely learnt and also made very good returns. If you hate someone's ways don't follow him. Go and gamble your money away and at least learn to speak properly. It seems you are one of those people who come to the stock market to do 'satta' and gamble.

Naresh Pisharody said...

Hi Anonymous ,
Your comments are out of ignorance. Many of us would have thought your way when we started acquainting with the markets. 90% of the 'investors' loose money in the markets. They are people like you who have no inclination to learn and want to make a quick one. Believe me, please keep off the markets as you are likely to loose all your wealth, if u have not already done so. Markets are not for the ones in a hurry. Brokers might tell you otherwise and make you believe because that's their business. Wealth can only be created through knowledge and patience. Hope you keep your sanity while dealing with the markets.

CCGemini said...

Anonymous Saturday, May 22, 2010..Any way i like your frank remarks.But if you intend to make quick money send me your emailD on this post and I shall give you the addresses of race courses and casinos in India where U will be able to make very quick money.This just happens to be a wrong place for U...