Top Investing quotes!
Printed From: The Equity Desk
Category: Market Strategies
Forum Name: Buffet, Lynch and other legends - Investing Strategies
Forum Discription: DIscuss about the strategies followed by the great investors. Share an idea which would have impressed the masters. Try and bring their International experience into the Indian Markets.
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=808
Printed Date: 09/Apr/2025 at 9:25am
Topic: Top Investing quotes!
Posted By: deveshkayal
Subject: Top Investing quotes!
Date Posted: 15/Mar/2007 at 9:53pm
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The best assurance of continued growth, and high profit margins, comes back to this: the company should have a special niche in the marketplace, so that sales don't depend on offering a commodity item at a lower price than the competition's. It should, to a degree, dominate that niche. The best company in a marginal industry is worth more than the third-best company in a major industry. I'd rather own the shares of Hokuto, the leading mushroom grower in Japan, than of Mitsubishi Motor or Subaru." Ralph Wanger ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Replies:
Posted By: deveshkayal
Date Posted: 15/Mar/2007 at 10:19am
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Some succeed because they are destined to, but most succeed because they are determined to." Anon ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: deveshkayal
Date Posted: 16/Mar/2007 at 10:36pm
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"Bear markets happen for a simple reason. The owners of the merchandise can't get their asking price. The shortage of buyers forces them to lower the fare, until a buyer can be coaxed into making a deal. It's a common occurrence in retail. Stores have a bear market after every Christmas rush." John Rothchild ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: kulman
Date Posted: 16/Mar/2007 at 11:29pm
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Good thread, Devesh jee.
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 16/Mar/2007 at 11:35pm
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Nobody can predict interest rates, the future direction of the economy, or
the stock market. Dismiss all such forecasts and concentrate on what is actually happening to the companies in which you have invested.
Peter Lynch.
------------- '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 |
Posted By: kulman
Date Posted: 16/Mar/2007 at 11:50pm
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The single most comforting factor in holding a stock - is to see the price go up and that could also be the most deceptive one because it says that the stock is losing value.---Anonymous ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: deveshkayal
Date Posted: 16/Mar/2007 at 11:58pm
Kulmanji dont thank me...Thank that person to whom we have been doing till now...Basantji... ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: deveshkayal
Date Posted: 16/Mar/2007 at 12:25pm
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"When ten people would rather talk to a dentist about plaque than to the manager of an equity mutual fund about stocks, it's likely that the market is about to turn up. When the neighbours tell me what to buy and then I wish I had taken their advice, it's a sure sign that the market has reached a top and is due for a tumble." Peter Lynch, on his 'Cocktail Party' theory of market forecasting ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: omshivaya
Date Posted: 16/Mar/2007 at 5:22am
Wah Wah! Kitne Uttam Vichar hain!!
No...on a serious note, you are right Devesh ji. ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: us121
Date Posted: 16/Mar/2007 at 10:10am
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i recently came across a very good web page:
Excellent link for knowing about investment gurus and other investment related details ------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: kulman
Date Posted: 17/Mar/2007 at 5:13pm
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"Timidity prompted by past failures causes investors to miss the most important bull markets"---WALTER SCHLOSS ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 17/Mar/2007 at 5:25pm
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Owning stocks is like having children – don’t get involved with more than you can handle. The part- time stock picker probably has time to follow 8-12 companies, and to buy and sell shares as conditions warrant. There don’t have to be more than 5 companies in the portfolio at any one time - Peter Lynch ------------- '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 |
Posted By: deveshkayal
Date Posted: 18/Mar/2007 at 5:22pm
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Managements can be guarded, especially if they know we [Acorn fund] own a lot of their stock. But their competitors will usually talk freely about them. It's like trying to find out about a young lady you are interested in. If you ask her mother, you are certainly going to get a different perspective than you would if you asked the boyfriend she has broke up with. We like to hear what the boyfriend has to say." Ralph Wanger ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: basant
Date Posted: 18/Mar/2007 at 6:25pm
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Excellent thought Devesh but I use the girl's mother to find out what all similar minded girls in the locality (industry) are doing. We can therefore create opinions about specific girls (companies) once the general trend has been established. ------------- '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 |
Posted By: India_Bull
Date Posted: 18/Mar/2007 at 6:54pm
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Reverse is also True..
When Hundreds of people are talking about market going down further , its time to start buying.  ------------- India_Bull forever Bull ! www.kapilcomedynights.com |
Posted By: deveshkayal
Date Posted: 19/Mar/2007 at 2:54pm
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Buying and holding is far from the sure thing it's made out to be. It works in bull markets. It works if you invest regularly, in dribs and drabs, catching the ups and downs along the way. It works in mild bear markets, when the decline are quickly reversed. It may work if you've got twenty years to wait for stock to recover from a half-off sale. Otherwise, it's risky. It's very risky when you're holding stocks you bought at extravagant prices. It's extremely risky when your retirement depends on a positive result and you're planning to take up golf in a decade or less." John Rothchild ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: basant
Date Posted: 19/Mar/2007 at 3:10pm
Everyone cannot be (remain) rich at the same time. ------------- '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 |
Posted By: BubbleVision
Date Posted: 19/Mar/2007 at 3:39pm
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Absolutely Wonderful Quote Devesh....
Buying and holding is far from the sure thing it's made out to be. It works in bull markets. It works if you invest regularly, in dribs and drabs, catching the ups and downs along the way. It works in mild bear markets, when the decline are quickly reversed. It may work if you've got twenty years to wait for stock to recover from a half-off sale. Otherwise, it's risky. It's very risky when you're holding stocks you bought at extravagant prices. It's extremely risky when your retirement depends on a positive result and you're planning to take up golf in a decade or less."
John Rothchild I would add one more from the sage of omaha...
Its only when the tide turns ... we know who was wearing what! ------------- 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! |
Posted By: kulman
Date Posted: 19/Mar/2007 at 3:53pm
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Very true.
No matter how good a company is, your returns would eventually depend upon the price that you pay for the company. Higher the price, lower would be your return and vice versa---Anon
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 20/Mar/2007 at 6:21pm
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More money is lost listening to brokers than any other way - Michael Marcus. ------------- '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 |
Posted By: kulman
Date Posted: 20/Mar/2007 at 6:32pm
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"A stockbroker is someone who invests other people's money until it's all gone."---Woody Allen
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: kulman
Date Posted: 20/Mar/2007 at 9:04am
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The Only Way To Beat The Market, after adjusting for market risk, is to discover and exploit other investors’ mistakes.---Charles Ellis Note: Going by this logic, keep close track of actions of members of our http://www.theequitydesk.com/forum/forum_posts.asp?TID=359 - Lal pariwar !
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: deveshkayal
Date Posted: 20/Mar/2007 at 10:14am
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"An economic forecaster is like a cross-eyed javelin thrower: they don't win many accuracy contests, but they keep the crowd's attention." Anon ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: basant
Date Posted: 20/Mar/2007 at 10:47am
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My impression is that to make money, you have to hold a position with conviction. That is very difficult when you are following someone else. – Bruce Kovner. ------------- '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 |
Posted By: kulman
Date Posted: 21/Mar/2007 at 1:07pm
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My impression is that to make money, you have to hold a position with conviction. That is very difficult when you are following someone else. – Bruce Kovner.
------------------------------------------------------------- Hmmm.....The Master puts it like this:
My idea of a group decision is to look in the mirror.--- Warren Buffett
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: Mohan
Date Posted: 21/Mar/2007 at 9:57pm
LOL How Very true.
Also, very injurious to the crowds health. No Idea where the javelin is going to hit.
 ------------- Be fearful when others are greedy and be greedy when others are fearful. |
Posted By: basant
Date Posted: 21/Mar/2007 at 10:49pm
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When I trade, I don’t just use a price stop, I also use a time stop. If I think a market should break, and it doesn’t, I will often get out even if I am not losing any money. – Paul Tudor Jones. ------------- '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 |
Posted By: tigershark
Date Posted: 21/Mar/2007 at 8:51am
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as a general rule it is foolish to do what other poeple are doing because there are almost sure to be too many people doing the same thing-wiiliam stanley jones ------------- understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things |
Posted By: deveshkayal
Date Posted: 22/Mar/2007 at 11:44pm
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If you can find a company that can get away with raising prices year after year without losing customers (an addictive product such as cigarettes fills the bill), you've got a terrific investment."
Peter Lynch ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: kulman
Date Posted: 22/Mar/2007 at 11:55pm
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There is nothing quite like admitting you don't know anything to make people think you know something.--- Ed Seykota
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: BubbleVision
Date Posted: 22/Mar/2007 at 7:08am
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Wonderful Kulman...I had never heard this one! Thanks for printing it. ------------- 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! |
Posted By: omshivaya
Date Posted: 23/Mar/2007 at 1:27pm
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Yes that one is really original and true Kulman jee. ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: deveshkayal
Date Posted: 23/Mar/2007 at 3:38pm
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"Wall Street professionals know that acting on 'inside tips' will break a man more quickly than famine, pestilence, crop failure, political readjustments or what may be called normal accidents."
Edwin Lefevre ------------------------------------------------------------------------------
I m posting the quotes of people whose name is heard for the first time by me... ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: omshivaya
Date Posted: 23/Mar/2007 at 4:16pm
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Thx for that Devesh ji. Value of quotes is also important as the mouth it comes from. Thanks for the last one. ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: basant
Date Posted: 23/Mar/2007 at 4:48pm
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One of the best rules anybody can learn about investing is to do nothing, absolutely nothing, unless there is something to do – James B. Rogers, Jr. ------------- '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 |
Posted By: BubbleVision
Date Posted: 23/Mar/2007 at 11:54pm
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Devesh...I would really recommend you Edwin Lefevre 's book...The Reminances of a stock operator! Read it after the CA exams.. I read it once a year for the last 3 years! I have a soft copy of that one. If anyone wants then PM me. ------------- 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! |
Posted By: kulman
Date Posted: 23/Mar/2007 at 12:08pm
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One of the best rules anybody can learn about investing is to do nothing, absolutely nothing, unless there is something to do – James B. Rogers, Jr.
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Very true....
“It has struck me that all men’s misfortunes spring from the single cause that they are unable to stay quietly in one room”—Pascal ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: deveshkayal
Date Posted: 23/Mar/2007 at 12:30pm
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Thanks Bubblevision..will surely read it...i can easily get the e-book..but i want to take care of my eyes..I have heard the name of the book.. ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: BubbleVision
Date Posted: 23/Mar/2007 at 12:35pm
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"He will win who knows when to fight and when not to fight." Sun-Tzu If you know thy enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle." Sun-Tzu ------------- 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! |
Posted By: deveshkayal
Date Posted: 24/Mar/2007 at 12:13pm
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"When men speak of the future, the Gods laugh." Chinese Proverb ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: deveshkayal
Date Posted: 24/Mar/2007 at 11:23am
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"If you can't control your emotions, being in the market is like walking into a heated area wearing a backpack full of explosives." Charles Ellis ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: basant
Date Posted: 24/Mar/2007 at 11:50am
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Absolutely stunning thoughts. These are some real formulas for success. Who said there was no formula for success in investing? ------------- '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 |
Posted By: kulman
Date Posted: 25/Mar/2007 at 12:01pm
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Yes, you are right. If you notice carefully, these formulae for success however have Emotion as the common & deciding factor.
After all life (& markets) is nothing but Commotion of Emotion.
Kehte hain naa, do kaano ke beech mein jo jagah hain (vacuum?) woh maayne rakhti hain.
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 25/Mar/2007 at 12:09pm
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Everyone has brainpower to make money in stocks. Not everyone has the stomach. If you are susceptible to selling everything in a panic, you ought to avoid stocks and stock mutual funds altogether - Peter Lynch. ------------- '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 |
Posted By: deveshkayal
Date Posted: 25/Mar/2007 at 11:45pm
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"Investors may be quite willing to take the risk of being wrong in the company of others, while being much more reluctant to take the risk of being right alone." John Maynard Keynes ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: omshivaya
Date Posted: 25/Mar/2007 at 11:51pm
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That was an excellent one Devesh bete,err ji. ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: deveshkayal
Date Posted: 25/Mar/2007 at 11:54pm
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I request every TEDies to call me Devesh only. No ji's plz. ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: omshivaya
Date Posted: 25/Mar/2007 at 12:04pm
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Well, by now almost all TEDdies know this is one habit OMShivaya has not been able to forsake. Sorry!!!!
Dont Worry Be Happy ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: basant
Date Posted: 25/Mar/2007 at 12:59pm
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My first wife used to say, “We need a TV.” I said, “What do we need a TV for? Let’s put the money in the market for a little while, and we could have ten TVs.” – James B. Rogers ------------- '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 |
Posted By: kulman
Date Posted: 25/Mar/2007 at 9:06am
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My first wife used to say, “We need a TV.” I said, “What do we need a TV for? Let’s put the money in the market for a little while, and we could have ten TVs.” – James B. Rogers
---------------------------------------------------------
I know a person who when his wife demanded new gold bangles, instead put the money on MCX gold futures thinking of multiplying jhatpat way. He unfortunately lost it all & had to sell other jewelry to meet margin calls.
Maybe unique; but lesson to be learnt.
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 25/Mar/2007 at 11:17am
He divorced his first wife because she wanted to buya sofa set and JIm ROgers wanted to trade with that money. Now all wives should know what happens when they want to buy furniture against the husband's wishes. ------------- '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 |
Posted By: kulman
Date Posted: 26/Mar/2007 at 5:02pm
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This one is not really a quote on Investing, but it is very very relevant.
What we think, or what we know, or what we believe is, in the end, of little consequence. The only consequence is what we do---John Ruskin
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: deveshkayal
Date Posted: 26/Mar/2007 at 5:29pm
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"Never pay the slightest attention to what a company president ever says about his stock." Bernard Baruch ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: India_Bull
Date Posted: 26/Mar/2007 at 1:41am
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“The best time to buy is when blood is running in the streets.” —Rothschild, Nathan Meyer ------------- India_Bull forever Bull ! www.kapilcomedynights.com |
Posted By: kulman
Date Posted: 30/Mar/2007 at 12:35pm
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"To speak of day traders in any investment context is silly. These people are fulfilling a need for entertainment and are using the stock market for that."---Bill Nygren ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: kulman
Date Posted: 30/Mar/2007 at 10:59am
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With equity investments there is a direct relationship between popularity and risk. The more popular a stock or an industry sector has become, the higher the risk an investment in that area carries. Risk builds in any market as money pours into a particular vehicle. The more the money moves in a particular direction, the higher the risk. Risk is always a moving target, where as concepts such as Beta perceives it as static. In the 1950's it was accepted wisdom that bonds where a low-risk investment, but the 1970's proved this was basically nonsense. The perception of risk and real risk are entirely different things. Market psychology and mechanics make it that way. As people run from the risk that they see in the rear view mirror they tend to rush toward the risks they can not see. The best way to insulate your investments from risk is to avoid the crowd. ---Richard Losch
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: BubbleVision
Date Posted: 30/Mar/2007 at 11:02am
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"The eye of a master will do more work than both his hands." Benjamin Franklin ------------- 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! |
Posted By: basant
Date Posted: 31/Mar/2007 at 2:43pm
Kulmanji any idea on how to evaluate whether the stock is popular not?We always hear about this term "popular stocks" what the man on the street is saying/ buying but is there any way to find out whether Reliance or Balrampur Chini is popular or not?
One example which I thought of is that non popular stocks will always have very low liquidity. In other words a lower liquidity means that more people are not willing to trade and also it indicates that the stock holders do not think of the company as being a trading bet. They are not willing to frequently sell and buy. In other words they intend to hold the company for the longer term.
What ever money I have made in the markets the winners have come from very low liquidity stocks and the losers from highly liquid ones. In 1994 Infosys used to trade about less then 2000 shares a day - look at the volumes now! ------------- '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 |
Posted By: Vivek Sukhani
Date Posted: 31/Mar/2007 at 2:58pm
| Popular stocks can be found out by looking at the shareholding pattern of the company..... |
Posted By: Vivek Sukhani
Date Posted: 31/Mar/2007 at 3:03pm
| Thats why you will see a stock like Hindalco getting battered all around the park and a company like Bhushan steel and a sesa doing such wonderful jobs..... we all do cyclical/non-cyclical, visibility/non-visibility, blah blah blah etc etc......what it all matters in the end is how is the company managing the sanctity of its equity capital.... whether its trying to increase or reduce float...... whether it encourages ownership by small shareholders or not.....something like a MRF will never itself so easily available and hence its strength..... whereas as a JK Industries will do all sort of placements etc etc. and hence it trades less than its book value. |
Posted By: kulman
Date Posted: 31/Mar/2007 at 3:13pm
In my opinion, popular stocks could be defined as follows:
Nice to learn about this observation by you: What ever money I have made in the markets the winners have come from very low liquidity stocks and the losers from highly liquid ones ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: Vivek Sukhani
Date Posted: 31/Mar/2007 at 3:25pm
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excellent definition by Shri Shri Kulman |
Posted By: basant
Date Posted: 31/Mar/2007 at 3:37pm
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Nice to learn about this observation by you: What ever money I have made in the markets the winners have come from very low liquidity stocks and the losers from highly liquid ones _____________________________________________________
Still most of the analysts will blame the illiquid stocks if they were to fall with the markets and the general argument will be to stay into liquid ones and unless you are an institution or an MF managing other person's money you should never listen to that advise and I am neither of them!.
------------- '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 |
Posted By: tigershark
Date Posted: 31/Mar/2007 at 4:54pm
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what liquidity got to do with the performance ofa stock?expect for huge volumes ultmately stock performance in the long run will depend on corp performance so if an highly illiqud stock does start to deliver consistently on its numbers then ultimately liquidity shall come most of todays managements do keep an eye on their stock prices maybe even on a daily basis. ------------- understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things |
Posted By: basant
Date Posted: 31/Mar/2007 at 5:04pm
In this case I was talking only about the "liquidity" aspect of a stock and nothing else. Bharti was a 35 bagger with huge liquidity and you could not buy 500 shares of Trent at Rs 150 without bidding up the price 3%. But my argument was to talk ONLY from the liquidity angle because a lower liquidity suggests lower participation and hence makes a stock look unpopular.
Sometimes this popular/unpopular liquid/illiquid Institution/punter are all meaningless because what matters is the business fundamentals but for a broad view of things I prefer being with illiquid stocks because it gives you a perspective from a distance. Not that I would buy a stock which is illiquid but if I am buying it and it is illiquid I consider it better rather then the other way round. ------------- '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 |
Posted By: kulman
Date Posted: 31/Mar/2007 at 6:15pm
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Mr Gul Tekchandani describes it very well. He mentions the term "pariah" & recommends buying into them.
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 03/Apr/2007 at 7:53pm
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Viewed individually each company’s capital investment decision appeared cost effective and rational; viewed collectively the decisions neutralized each other and were irrational (just as happens when each person watching a parade decides he can see a little better if he stands on tiptoes) - Warren Buffet. ------------- '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 |
Posted By: deveshkayal
Date Posted: 06/Apr/2007 at 7:46pm
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The Washington Post Chairman and CEO, Don Graham said in a speech in 2004, "Quarterly earnings are not in the top 100 things you should care about if you want to value the company.If you care about that sort of thing,you shouldn't own our stock". ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: kulman
Date Posted: 08/Apr/2007 at 1:54pm
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Here's another interesting view.....
Mr. Market: The sequel
Benjamin Graham created the fictional character ‘Mr. Market’ and used him as a metaphor for the sometimes irrational behavior of investors. In Graham’s story about Mr. Market, the reader is asked to envision Mr. Market as his volatile business partner. Mr. Market, who has a history of emotional instability, periodically offers to sell his half of the business (or to buy the reader’s half) at wildly gyrating prices, even though there are no fundamental changes in the business’ inherent value. The point of Graham’s story, of course, was to illustrate that just because other investors offer to buy or sell stocks (i.e., ownership in businesses) at high or low prices, it doesn’t necessarily mean that there is anything inherently terrific or worrisome with the businesses in question. In short, astute investors would be wise to take advantage of Mr. Market’s volatility, not to heed his constantly shifting opinions.
In
In this story, imagine that Mr. Market moves into the house next to yours. Suppose further that Mr. Market has the unusual habit of each day offering to buy your home — at a price of his choosing. Basically, Mr. Market rises early each morning, quickly determines what he thinks your house is worth, writes that amount on a note, and then places his note on your front door. As you leave your home each day you see Mr. Market’s offer, and given his chronic instability, the price he quotes changes dramatically from one day to the next. On Monday, Mr. Market might offer $1,000,000 for your home, yet on Tuesday the price he quotes could be only $750,000. On Wednesday his price may be back to $1,000,000, but on Thursday his offer could plunge to only $500,000. Perhaps on Friday Mr. Market’s note would show a price of only $99.95! (He might have visited Wal-Mart the prior evening.) Do you think you’d be especially worried when Mr. Market wrote a very low figure? Chances are that you wouldn’t — for good reason. If you really wanted to sell your home, and if you were willing to list it and take the time necessary to find a qualified and appreciative buyer, you would be able to sell your home for a fair price.
Of course, if for some reason you felt that you absolutely had to sell your home within minutes, then Mr. Market’s low price could be a cause for concern.
It’s the same with investing in stocks. If you feel the need to sell your stocks within minutes, then you should be concerned if current marketplace prices seem unrealistically low. However, if your stocks have a far greater inherent (or intrinsic) value, and if you can afford to patiently wait until markets regain their senses, then the stock prices one sees today should not be cause for worry.
Indeed, to the extent that an investor can spot good values, has patience and has funds available to invest, unrealistically low stock prices not only do not present a problem, they actually present an opportunity!
In short, whether Mr. Market represents a volatile business partner, an eccentric neighbor or the mass of other investors, the astute investor is best advised to take advantage of Mr. Market’s emotional instability, not to heed it.
---JV Bruni ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: BubbleVision
Date Posted: 08/Apr/2007 at 2:58pm
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"The opportunity of a lifetime must be seized during the lifetime of the opportunity." - Leonard Ravenhill ------------- 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! |
Posted By: BubbleVision
Date Posted: 08/Apr/2007 at 3:06pm
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The key is consistency and discipline. Almost anybody can make up a list of rules that are 80% as good as what investing gurus taught. What they can't do is give (people) the confidence to stick to those rules even when things are going bad." ------------- 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! |
Posted By: Vivek Sukhani
Date Posted: 08/Apr/2007 at 6:46pm
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"You get recessions, you have stock market declines. If you don't understand that's going to happen, then you're not ready, you won't do well in the markets." Peter Lynch |
Posted By: Vivek Sukhani
Date Posted: 08/Apr/2007 at 6:46pm
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I've found that when the market's going down and you buy funds wisely, at some point in the future you will be happy. You won't get there by reading 'Now is the time to buy.' Peter Lynch |
Posted By: Vivek Sukhani
Date Posted: 08/Apr/2007 at 6:48pm
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The financial markets generally are unpredictable. So that one has to have different scenarios.. The idea that you can actually predict what's going to happen contradicts my way of looking at the market. George Soros |
Posted By: Vivek Sukhani
Date Posted: 08/Apr/2007 at 6:49pm
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Wall Street people learn nothing and forget everything. Benjamin Graham |
Posted By: Vivek Sukhani
Date Posted: 08/Apr/2007 at 6:51pm
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"The one principal that applies to nearly all these so-called "technical approaches" is that one should buy because a stock or the market has gone up and one should sell because it has declined. This is the exact opposite of sound business sense everywhere else, and it is most unlikely that it can lead to lasting success in Wall Street. In our own stock-market experience and observation, extending over 50 years, we have not known a single person who has consistently or lastingly made money by thus "following the market." We do not hesitate to declare that this approach is as fallacious as it is popular." Benjamin Graham Sorry Bubble, not my opinion but a quote by the person who wrote the Bible for investors
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Posted By: BubbleVision
Date Posted: 08/Apr/2007 at 7:34pm
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No problems Vivek...Actually this is what I want. As long as the markets do not believe in any method, that is the time it works the best. When everyone follows one method...It stops working, or atleast the results are diluted!!!
May be now is the right time for this quote...in this thread!!!
The call of the countertrend... - William Eckhardt ------------- 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! |
Posted By: basant
Date Posted: 08/Apr/2007 at 7:47pm
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Yes Bubblevision I remeber you having put in that post earlier. This is really a phenomenal thought. We know how people argue on this basis. It has come down should we buy or it has gone up should we sell!!!
The problem starts because people look at just price and nothing else. For instance a typical argument would be It has gone up 40 times not realising that the EPS has also gone up 20 times!!!
http://www.theequitydesk.com/forum/forum_posts.asp?TID=264 - Infosys went up some 3000 times in the last 14 years and each time it made a new high it would have looked that "trees do not grow to the skies". True they don't but they also do not grow just 10 feet (read 10 times) and then stop!!! ------------- '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 |
Posted By: BubbleVision
Date Posted: 08/Apr/2007 at 7:59pm
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Absolutely BasantJi...
------------- 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! |
Posted By: kulman
Date Posted: 08/Apr/2007 at 8:38pm
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Basant jee had posted this earlier....but this quote deserves a place of its own on this thread....
There are no short-cuts in life or markets. At least that's what I've learned based on personal (paid fees for that) as well as other's experiences (free of cost learning) .....
"Investing should be dull, like watching paint dry or grass grow. If you want excitement, take $800 and go to
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: omshivaya
Date Posted: 08/Apr/2007 at 8:51pm
------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: BubbleVision
Date Posted: 08/Apr/2007 at 9:01pm
Om....looking at a compounded growth rate (Ex Inflation) over that period of time...the returns would be very very ordinary. BasantJi...aapka calculator ki darkaar hain!!
Also, From what I have read, similar statement was said about Rome (Roman era), when it was the capital of the world!!!
By no way, I am critising "John Templeton", as meri aukaad hi kya unke saamne.
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Amateurs Focus on Rewards. Professionals Focus On Risk! - Harald Anderson
Excellent!!
=========== ------------- 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! |
Posted By: omshivaya
Date Posted: 08/Apr/2007 at 9:04pm
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That is also the reason why I posted it here, since it came from the mouth of someone who owns a page at TED. It was a quote so I posted it on our quotes page.
You are pretty right to an extent. Hope it's okay me posting it here, since I thought TEDdies should know who said that  ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: omshivaya
Date Posted: 08/Apr/2007 at 9:21pm
This one is more broader in sense, including investing:
------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: BubbleVision
Date Posted: 08/Apr/2007 at 9:23pm
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Om ....It is absolutely OK....
------------- 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! |
Posted By: psimajin
Date Posted: 08/Apr/2007 at 11:22am
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“The cult of the stock market was, in the end, the greatest fantasy in an age filled with illusion.” The Great Bull Market: Wall Street in the 1920s |
Posted By: kulman
Date Posted: 09/Apr/2007 at 1:58pm
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I like to think of the process of investor sentiment becoming more positive as ‘burning’ pessimism — much like automobiles burn gasoline. In autos, when gasoline is burned it changes from one form (gas) to another (oxides of carbon and nitrogen, heat and kinetic energy), thus powering the vehicles. When cars run out of gas, they stop. In the case of stocks, the ‘combustion’ of pessimism changes its form (to optimism), and this change powers stock prices higher. When we run out of pessimism to convert to optimism, stock prices stop rising. In short, pessimism is the fuel of bull markets. It makes sense that if we want to take a long drive, we should have a full tank of fuel. Similarly, for stock prices to rise a great deal, a full tank of pessimism will be required.
In sum, if you tend to think like many other investors and if you are feeling pessimistic, this is a good situation — it means that there is already a good deal of pessimism available to power a long bull market. When pessimism is plentiful, all that’s necessary to start the process is an appropriate spark. ---JV Bruni------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: BubbleVision
Date Posted: 13/Apr/2007 at 3:34pm
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“When dealing with people, remember you are not dealing with creatures of logic, but with creatures of emotion, creatures bristling with prejudice, and motivated by pride and vanity” Dale Carnegie (American lecturer, author, 1888-1955) ------------- 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! |
Posted By: BubbleVision
Date Posted: 17/Apr/2007 at 4:52pm
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"Perception of the future price has a tendency to be serially dependent with the recent past. The more dependent perception becomes the more independent price will be."....Soros
------------- 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! |
Posted By: BubbleVision
Date Posted: 17/Apr/2007 at 4:53pm
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"Price makes news, not the other way around. A market is going to go where a market is going to go"
-- Peter Borish, former second-in-command for Paul Tudor Jones ------------- 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! |
Posted By: tigershark
Date Posted: 17/Apr/2007 at 5:11pm
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THOSE WHO HAVE KNOWLEDGE DONT PREDICT. THOSE WHO PREDICT DONT HAVE KNOWLEDGE.lao tzu-----sixth century chinese sage. ------------- understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things |
Posted By: deveshkayal
Date Posted: 17/Apr/2007 at 7:48pm
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"When your views are truly contrarian, they are inevitably uncomfortable. Courage and the ability to withstand pain are required".- Michael Steinhardt ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: deveshkayal
Date Posted: 18/Apr/2007 at 3:49pm
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Fools try to prove that they are right. Wise men try to find when they are wrong. - Dickson G. Watts
When in doubt, do nothing. Don’t enter the market on half convictions; wait till the convictions are fully matured.- Dickson G. Watts
------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: sanjay3
Date Posted: 30/Apr/2007 at 12:14pm
| "October. This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August, and February." |
Posted By: kulman
Date Posted: 15/May/2007 at 12:00pm
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“The illusion of knowledge is the tendency for people to believe that the accuracy of their forecasts increases with more information. So dangerous is this misconception that Daniel Boorstin opined, "The greatest obstacle to discovery is not ignorance-it is the illusion of knowledge." The simple truth is that more information is not necessarily better information. It is what you do with it, rather than how much you have, that matters.--- http://www.go2cio.com/articles/index.php?id=2247 - John Mauldin ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 15/May/2007 at 10:00am
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The simple truth is that more information is not necessarily better information. It is what you do with it, rather than how much you have, that matters
__________________________________________________
Bang on. Sometimes It helps us take a areial view of a company rather then actually go and sit in there with the finance controller. I have protected many profitable positions by not going too deep into a company's financials- Seems funny to write this but this has been my experience. ------------- '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 |
Posted By: kulman
Date Posted: 01/Jun/2007 at 9:30pm
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“Where an intermediate stand is taken, the result will usually be confusion, clouded thinking and self-deception.”---Benjamin Graham ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: Vivek Sukhani
Date Posted: 01/Jun/2007 at 9:54pm
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Graham developed his core principles, which are at least as valid today as they were during his lifetime: • A stock is not just a ticker symbol or an electronic blip; it is an ownership interest in an actual business, with an underlying value that does not depend on its share price. • The market is a pendulum that forever swings between unsustainable optimism (which makes stocks too expensive) and unjustified pessimism (which makes them too cheap). The intelligent investor is a realist who sells to optimists and buys from pessimists. • The future value of every investment is a function of its present price. The higher the price you pay, the lower your return will be. • No matter how careful you are, the one risk no investor can evereliminate is the risk of being wrong. Only by insisting on what Graham called the "margin of safety"—never overpaying, no matterhow exciting an investment seems to be—can you minimizeyour odds of error. • The secret to your financial success is inside yourself. If youbecome a critical thinker who takes no Wall Street "fact" on faith,and you invest with patient confidence, you can takesteadyadvantage of even the worst bear markets. By developing your discipline and courage, you can refuse to let other people’s mood swings govern your financial destiny. In the end, how your investments behave is much less important than how you behave. |
Posted By: Vivek Sukhani
Date Posted: 01/Jun/2007 at 10:02pm
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"while enthusiasm may be necessary for great accomplishments elsewhere, on Wall Street it almost invariably leads to disaster."-Benjamin Graham--------very muvh in sync with what bubble says....a great defence is what is necessary to succeed here and not great offence..... |
Posted By: smartcat
Date Posted: 01/Jun/2007 at 10:22pm
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A classic Warren Buffet quote on use of leverage in stock investments -
It's only when the tide goes out that you learn who's been swimming naked.
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