The more I meet ‘investors’ (they think they are investors) who seek alpha (like my friend SS says – since they do not keep accounts they do not know) and some who even claim that they get alpha….here is a list of shares that I destroyed yesterday:
Computer Point, Chokani International, Chimique Laboratories, Svadeshi Mills Limited, Shaan Interwell Ltd, Maikal Fibres, AMEI Power, Krishna Filaments. Collective value NIL. Cost price: A couple of lakhs in the 1990s.
So on an opportunity cost basis worth at least a million if not more…and like the Englishman says “One day if we can laugh at our mistakes……”
Well these are the costs of seeking alpha. These shares were bought because a cousin’s friend said it is a good buy. One was because a friend’s cousin said it is a good buy. One because the Chairman was buying (I got carried away by titles in my younger days – did not realise that if you create the company, YOU HAVE TO be the Chairman – after all nobody else will :). One chairman used to call himself a partner of a big CA firm. He was actually only a Director. LOL.
One company was raided on the basis of information provided by his brother in law. There was Fera violation, Income tax violation, …the works.
One company Chairman laughed when I asked him if was in trouble. One month later he committed suicide. I have not mentioned his company name – his children are still around. Simple decencies for a guy who stole money from all and sundry but did big time charity 🙂 (if u can call distributing stolen money charity).
The worst thing is not only I lost my money I also lost it for some of my friends, relatives, sister, father, cousins, ….naively believing alpha chasing is fine. I still find many people chasing alpha….now as the Englishman says ..”I hope I can laugh…..”
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