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tigershark
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Joined: 13/Oct/2006
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   Posted: 03/Aug/2007 at 5:06pm |
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Network - 18-- have TEDS REALISED how one qrts indifferent results have put SEEDS OF DOUBTS in many of our minds.ARE WE ONE QRT INVESTORS OR ARE WE LONG TERM INVESTORS introspection into each ones self is reqiured at this moment
Edited by basant - 03/Aug/2007 at 5:50pm
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understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things
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basant
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Posted: 03/Aug/2007 at 5:11pm |
Golden words.Remember a friend of mine who keeps saying that investing is 50% skill and 50% emotion problem is when a quarter's results are bad we are compelled to look at our skill through emotion.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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kulman
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Posted: 03/Aug/2007 at 5:21pm |
...problem is when a quarter's results are bad we are compelled to look at our skill through emotion.
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It's not only a bad Qtr, but the emotions are somehow proportional to the Market Price and also attached to our own buying price (called as Anchoring in behavioral finance).
In this process we often tend to forget the 'big picture' or the future earning potential of that business.
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Life can only be understood backwards—but it must be lived forwards
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catchsudipto
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Joined: 06/Sep/2006
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Posted: 03/Aug/2007 at 5:22pm |
have TEDS REALISED how one qrts indifferent results have put SEEDS OF DOUBTS in many of our minds.ARE WE ONE QRT INVESTORS OR ARE WE LONG TERM INVESTORS introspection into each ones self is reqiured at this moment
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Boss i believe its one of the best words to diff b/n long term and short term investor. Great Job. Keep it up 
Edited by catchsudipto - 03/Aug/2007 at 5:24pm
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Make your Life as simple as possible.
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tyler_durden
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Joined: 24/Oct/2006
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Posted: 03/Aug/2007 at 5:29pm |
Originally posted by kulman
...problem is when a quarter's results are bad we are compelled to look at our skill through emotion.
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In this process we often tend to forget the 'big picture' or the future earning potential of that business.
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Thats wat happens most of the time...people follow herd mentality...people will start selling now...and will try to jump in when prices will start to soar .... totally opposite of buy cheap sell dear
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If you aren't fired with enthusiasm, you will be fired with enthusiasm.
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basant
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Posted: 03/Aug/2007 at 5:42pm |
Remember how we used to debate about Pantaloon's valuation when it was at Rs 400 - margins, Reliance, rent etc. At Rs 530 we have forgotten all of that. 
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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deepinsight
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Joined: 18/Sep/2006
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Posted: 03/Aug/2007 at 7:08pm |
TV18/NW18:
While earnings were dissapointing - topline was actually quite encouraging. These kind of business models have a long enduring cash generating ability and growth trajectory in front of them.
On a broader sense: Negative QOQ trends can actually give warning for detoriating businesses or business models - and can be invaluable decision tools to protect capital or add to a position if one percieves it as short term in nature.
It could be interesting to focus on what variables to focus onon QOQ basis for that particular business to monitor -for value creation and risks.
This quarter results has quite clearly underlined the detoriating external conditions for exporters (IT services companies, Pharma, Gems, Garments) because of the rising Rupee against the USD. Now some companies are handling this challange better than others - but some companies may not be able to cope with this new challange.
Every quarter (even for many of us who are long term investors) one has to take the numbers and decide - to sell, do nothing or buy more - we hope that usually the outcome is do nothing or add more.
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"Investing is simple, but not easy." - Warren Buffet
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kulman
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Posted: 03/Aug/2007 at 7:19pm |
Great points deepinsight.
Another major issue is understanding the difference between company's financial performance & its stock price performance on the bourses. Though these two (stock price & earnings) have corelation over a long term, there are numerous other factors which affect the stock price in the short-to-medium term.
Human mind gets swayed by stock ticker prices more than anything else.
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Life can only be understood backwards—but it must be lived forwards
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