Saturday, March 15, 2008

When Others Are Fearful- It Is Time To Get Greedy!

Lately due to the recent market correction, several stocks have become great value buys. Some of these might be known to you, while others are still relatively unknown. These stocks are great value, because they are being offered at less than half of what their assets are worth. Buying them today would mean that you are buying something which is worth at least two or even three times more than what you are paying for it.

Most people at this moment are filled with fear and thus letting value investors like me to buy in a very comfortable manner. These stocks which I am investing in are long term picks and should give average annualized returns approximately in the range of 35%-40% if we are extremely conservative. The power of compounding also must not be forgotten. For instance every $1650 invested in Wal-mart in 1971 would be approximately $ 3 million in 1991. People who create wealth do things that others don’t, and don’t follow the herd.

There are countless such examples, which prove good companies bought at cheap valuations can truly give amazing returns, irrespective of what analysts say. If we ask 5 analysts what they think about a particular company, we will get over 50 views. Each analyst will tell you something different every single day based on the stock price. I find it strange when some of these people come on TV and say, sell when the markets go below X and buy when they go over X. Why would somebody sell when things become cheaper and buy when they become more expensive?

Once again when I am buying stocks, I don’t like too much hype around them because it usually leads to unnecessary price rises. If I plan to accumulate a stock over a period of three to six months, I would rather hope prices go down rather than go up so I can buy cheap.

Based on the several requests I got, I have decided to let a select few of you invest with me only after making sure that you understand fully the fact that we will be investing in companies for the long term.

In case you are interested in investing, please send me an e-mail at and do mention a bit about yourself, the amount of risk you are willing to take and the capital you are looking at investing.

Irrespective of whether you invest with me or not, I assure you that certain universal principles of investing in value on the basis of knowledge remain eternal.

Keep smiling and happy wealth creation!

Yogesh Chabria
© Happionaire

Find out what Happionaires have to say about The Real Economy vs. The Stock Markets.


Anonymous said...

I have sent you an e-mail sir, I really hope I am able to invest with you. I too believe in value and long term investing.

Anonymous said...

Sir, I have sent you an e-mail telling you about myself and how much I plan to invest also. Please accept my interest to invest with you.

Shirish said...

Its indeed time for investing in fundamentally strong companies whose valuations have now come to very reasonable level. I think the collective effect of USA lowering interest rates, tiding over of subprime crisis and passing of Indian elections will take place by Q3 or Q4 of FY08-09.

I think it is also time to review your portfolio and make necessary changes as the cost of doing it will be lower at this time.

Happy Investing!

Anonymous said...

Yes, I absoutely agree with you Shirish. (My agreement with Yogesh is eternal! :-) )

And Yogesh please do pay attention to my e-mail too! I would love to have you invest my money for me.

And Happy Investing and Happy Living!

(And also "Hey" for g. my lovely gal buddy!)

Anonymous said...

Yes Yogesh. I agree with this value unlocking word.Everyone should be greedy now to take over the challenges and reap the fullest benefit over the period when the sentiments turn green. Also everyone should have to learn the art of patience and really have to tolerate the pains when our stocks turns even red after our purchase. Patience here doesn't mean waiting for a day or a month or a year and it could be more than that. We have to Keep invested in our invested laggards if the valuations gets even cheaper. But remind here be stock specific and dont average out too early for 1 digit percent changes.
Am i right Yoga?

zarir wadia said...

Dear yogesh,
How are you planning to invest with others? I have remained a mutual fund investor till now and never bothered to open a demat account. Now maybe I need to do that as help is available from your side.

Anonymous said...

(hey sameera, all the best with your investments and hope you get selected.i'll put in a word for you :D take care girl)

akaps said...

Hi I would like to invest with you.

Bharath said...

Dear Yogesh,

I have sent you an email sir. I wish to be guided by you and learn from you.!

Warm regards

sacchie said...

Hi Yogesh,
I completely agree with you and have sent you a mail in this regard.
Also, one of the problems I am facing is what are the levels, at which a person should average a stock.


Hi yogesh sir, I want to invest with u. please accept my request to invest with u sir.