Wednesday, May 28, 2008

Crossword Event, Never Selling At A Loss And More!

Lots of new things have been happening and that is what is causing the number of unanswered e-mails in my in-box to rise exponentially.

I loved meeting so many of you on Saturday at our event at Crossword. It was very nice to see such a diverse group comprising of people of all age groups being immersed in a talk on investing. In fact I ended up staying much longer than expected, as so many of you had lots of questions and ideas to share. It makes me very happy to know that people truly are interested in knowledge and learning more. I'm happy that more people have started taking interest in their financial well being. I would like to apologize to all those people who had to stand through the entire event as there was a limitation of seating.

Also I think I should be getting the award for the world’s worst hand writing! All those of you who got your books signed, would surely root for me to get the award!

Lots of interesting ideas were shared, and I got to learn a lot too. All those who did not get the opportunity to attend the event, please do not worry as we will be having more such events and also I shall be sharing all the ideas and tricks of the trade discussed here.

We had discussions about value buying, Chabria-Cola, competitive investing, balance sheet paper quality, inflation, air-conditioning, markets and more.

Just a small thing I would like all of you to think about. Several new investors imagine that returns in the stock markets are instant and quick. This is not at all true, if you look closer at some of the world's best investors, you will see how most of them do tend to go in red as soon as they invest, what they have is conviction and patience. Study what happened to Warren Buffett's investment as soon as he bought into Coca-Cola several decades ago. Did it go up as soon as he bought it or did it go down? You will find out that conviction and patience are very important after you have done adequate research.

Why do I keep saying these things? Because succeeding as an investor is more about the psychology than just pure financial terms. You can simply put any financial term in Google and get the definition and meaning. Millions and billions of people can simply learn those meanings, but the main thing that decides who wins and who loses is the thought process. Did you know one of the reasons Mr. Warren Buffett has created so much wealth, is simply because he refuses to sell at a loss. He has rarely ever sold any stock at a loss and at times has held on to stocks which are making a loss for several years, because he believed in the fundamentals. Stock markets are not rational because they are based on human psychology.

I just had one question for all of you. Do you think men and women think differently about money, finance and investing? If yes, please let me know what these differences are. Do you have any personal experiences or examples to share? Share your ideas in our comments section. I might end up using a few of your ideas, in our next book.

Have a great day and keep wearing that lovely smile on your face!

Yogesh Chabria


Do you feel most of the money is made when you buy?


Anonymous said...

Hi Yogesh,

I loved the event and loved your sense of humor. It is very nice, because it helps people like me learn more and understand investing better. I have never invested before, and just your voice and what you were saying got me attracted to listen to you.

I had just come their for a regular bookshop visit. This is destiny that I had to hear you and now will start investing slowly.

You are doing great work for millions of people like me who can finally start benefiting from the stock markets.

Keep making us smile.

Anonymous said...

Oh coming to women and men and investing. I fin men willing to take more risks than men. No wonder so many men become multi-billionaires and at the same time so man men also become bankrupt. Am curious to know what tohers feel.

Anonymous said...

Glad you made this post Yogesh.

I agree Girish. I got very impressed with Yogesh's personality and also humbleness. It was very funny when Yogesh told us how he was nervous, and even slightly pretended to be nervous. I'm sure he wasn't and was just trying to make us smile and feel comfortable.

Really made us think more for ourselves.

Coming to women, I feel women are not too bothered about money as it is still not their main goal in life. Love, marriage, family is more important to them according to me.

Anonymous said...

Oh, just one question if the person who told us about the solar company is looking at investing at the event. If you are reading this please let us know the name of the company, as I couldn't understand what was said.

It was a great way to spend Saturday!

Adv (Dr) Lalkumar said...

Hi Yogesh,

What I feel is men are concerned about long term investment to have money for their future liabilities, whereas women are happy to have money for their immediate and comfortable living style of having a good house, car and other luxury items. I am not generalising this fact, there ought to be exceptions.

Adv Lal

Chirag Joshi said...

Hi Yogesh,

Let me tell you something as per your definition women can be better investor and analyst than men as they have more patience and sense of responsibility particularly indian women.

But it sad that in india women's are not getting the chance to take this kind of decision(Financial) so but time is changing. And certainly they will prove better investor.

Anonymous said...

Regarding men and women perceptions of money and finances I would say men always think of money no matter what he do. He may not be much literate about investing but he think he knows better than persons he met in his everyday life. Women, on the other hand, have many things to think about apart from money and finances. Like, love, care, household management, shopping, meeting her job demands, not to mention her kids and husband demands, food and well being of others etc. The time she is left with , she than thinks about money. This is my personal experience as in my family, out of 4 members (including me) 3 are women, my mother-my wife-my 3 year old daughter.

Anonymous said...

Hi Yogesh,
It is a quite interesting topic that men and women think differently on investment. Most of the men are ready to take risk whereas women very rare .Women like to have billions of money not taking risk but by any windfall or sudden luck over the night.They are not ready to move away from their comfort Zone. Men think of better financial future of all but women very much think about their future only.
By Yogesh

The Happionaire™ Blog said...

It is interesting to read your views on the way men and women look at money and investing.

I have been interacting with several women and trying to learn more from them and I have found lots of interesting things. I have started writing all these for one of our books planned under The Happionaire series.

Will keep you all updated on what happened there!

Thanks for sharing your lovely ideas!


Anonymous said...

The answer is yes.

Being a woman myself i had to answer this question as it seemed very natural for me to answer. I had been thinking this way for quite a long time. The reason being my husband understands finance very well and i am quite dumb in finance despite scoring 95% in maths in my graduation.Both of them studied in B.E. (Electronics).

Many women know how to handle money, but i think women are not at all good at investing or understanding finance. I find hardly women talking about money or about their financial well being with their parents, friends or siblings. They are not trained to think that way. Where as men know they have to earn right from the beginning and they always think of profit which is where i guess finance starts. My husband learnt the art of investing which begins with savings when he was 10 years old and my younger brother made a profit of 400% by selling a flute (actual price 50 Rs) when he was seventeen years. This definitely raised my eyebrows as i was working in a new job and still not yet learnt how to save income tax. I never showed any savings for the first years because i was happy with what i get. I could not see what i was not getting. Where as my husband cribbed about what he was not getting. Hence he thought of ways to save it.

Also women start to learn finance in later years of their life and by that time they do not have their own source of capital.

Women don't think money can grow by investing in FD, banks or stock markets unless she had done learnt finance in her studies . They think of hard savings (without interest) . With inflation such savings will not help them.

Why are women bad at financing and investment?

1. They don't consider losses.

2. They don't think money can grow

3. They never think about inflation.

4. They are quite shy about talking money with parents friends and siblings.

They could be best in investing if they are trained in finance in their early years and taught to be more independent in finance. The reason is women have more patience and conviction than males.

The above is my view only considering the vast middle class / low class / few high class families which consists of majority of population in India.

Still there are handful of women who are good at handling money , good at investing and understanding finance.

These are my own experiences and no offence meant to any women.

Thanks for reading .

-- Radhika

Anonymous said...

Dear Yogesh,

I am reading about your views on share market and very impressed. I want to follow you in investments. I am going to buy your book also. Keep making me smile. I can not write more because lack of drafting knowlege. But one thing is sure that i will not ignored share market till your guidelines are available.