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basant
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Joined: 01/Jan/2006
Location: India
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Posts: 18403
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   Posted: 24/Nov/2006 at 12:30pm |
I would not put Educomp in that category since its business is evolving. How about buying HDFC Bank from a loan taken from HDFC Bank and then repaying them. The Bank would charge 10% andf the stock should definetely grow at 25%!!!
But you cannot borrow against shares in excesss of Rs 20 lacs also that amount is not allowed to be put into the markets. What you do is genreally not looked at but buy solid companies like the HDFC twins and I am sure you would do well.
Edited by basant - 24/Nov/2006 at 12:32pm
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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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xbox
Senior Member
Joined: 10/Sep/2006
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Posts: 2001
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Posted: 24/Nov/2006 at 12:51pm |
One can always analyse historical events but future assurance can not be garrenttied by this.
Taking loans for share trading is bad and must be avoided in any circumstances. Right now we are at all time highs but even at lows one must avoid this practice.
My stand is very clear. Gamble only on own money.
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Don't bet on pig after all bull & bear in circle.
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go4lalit
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Joined: 27/Aug/2006
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Posts: 135
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Posted: 24/Nov/2006 at 3:27pm |
I think instead of taking a loan & paying EMI, if we invest the same EMI amount systematically (Possibly through SIP) , we should be able to generate decent return with less risk.
If we invest systematically, it would reduce risk. Taking loan & investing in one shot is definately not a good idea.
For example, whatever you pay as EMI, you can buy HDFC every month & if HDFC continues to grow at 25%, I am sure you will be able to build wealth.
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basant
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Location: India
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Posts: 18403
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Posted: 24/Nov/2006 at 3:43pm |
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Different concepts really just like buying your investment in installments.
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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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kaushalchawla
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Joined: 01/Sep/2006
Location: India
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Posts: 348
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Posted: 24/Nov/2006 at 4:07pm |
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Personally, I have been told by my Uncle to put only your money in share market and not the borrowed one. Because if you loose borrowed money, you will loose much more than just money.
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Warm Regards,
Kaushal
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BubbleVision
Senior Member
Joined: 05/Aug/2006
Location: India
Online Status: Offline
Posts: 3142
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Posted: 24/Nov/2006 at 5:24pm |
Harsh... i would like to advise you to be ready for an emotional Rollercoaster ... if you really take a loan to invest. It is not that it cannot be done... But it requires a whole lot of courage and Descipline to achieve big gains.
BasantJi... thanks for that link and your experience once again.
One Interview i will read again is of Martin Cook ... (in Market wizards -- third book).. who was in debt of over a Million Dollars .. and took a huge loan to trade.
Thanks a ton for initiating this discussion.
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You can't make money if you are unwilling to lose...It's like willing to breathe in but not willing to breathe out. -- ED SEYKOTA ....Read Disclaimer!
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BubbleVision
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Joined: 05/Aug/2006
Location: India
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Posts: 3142
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Posted: 24/Nov/2006 at 6:02pm |
BasantJi.... i would like to request you write something about Martin Cook's interview (particularly the loan incident when he called his mother ... and his mother's reaction (or the lack of it) gave Martin the confidence to trade)... here... Please..It will help all those who dont have the book.
I know that i am putting a lot of work on you..Apologise for that.
I would have done that but lack of energy in my fingers is a big constraint as i keep typing all day.... 
If anyone else has read the interview ... please post it .. it would be highly appreciated by all the members.
The conversation between Cook and his mother (during loan time) are worth reading ... even if i had to steal the book. They are AMAZING! It would really make a very good archive here in the forum.
Edited by BubbleVision - 24/Nov/2006 at 6:16pm
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You can't make money if you are unwilling to lose...It's like willing to breathe in but not willing to breathe out. -- ED SEYKOTA ....Read Disclaimer!
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India_Bull
Senior Member
Joined: 19/Sep/2006
Location: United States
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Posts: 2296
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Posted: 24/Nov/2006 at 7:08pm |
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I totally agree with you Basantji.HDFC and HDFC Bank are rock solid stocks..Though personally I feel ICICI is growing fast , worry is they are diluting equity..
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India_Bull forever Bull !
www.kapilcomedynights.com
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