About a year back we were all perhaps not so optimistic about the markets. Now we all are optimistic – what this means is the risk in the market has increased !! Risk is counter intuitive and it has always been like that for a long time.

About a year ago when I saw the prices of auto and FMCG scrips I was happy to sell them. Specifically I was happy to sell Colgate at 430, Gillette at 900, Ashok Leyland at 49, Tata Motors at 600,..and there were many others too…..so I called my broker. Thank God not doing it online has its advantages – there is a counter-view to all your decisions :).

Other than 400 shares of Ashok Leyland (which he had made me buy in 1995, 2002, and 2008 at sub-20 prices) all other shares stayed. Even in Ashok Leyland 3600 shares stayed :).

If you see today’s price you understand the value of a second opinion of a person whom you trust……..and the brokerage that I could have ‘saved’ (presumably it would be cheaper) is not worth the trouble….surely all of you agree?

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  1. Liked the above comment from M S PANJWANI.

    What i understood –> Long Term is good !!! Take advise from whom you trust !!! and believe in his advise if you trust him !!! Never follow herd mentality !!!

    Understanding is not because of this alone article but after impact of reading all your articles Subraji.

  2. Dear mr. subru,

    I dont know how capable you broker is, but gnerally they do much analysis and only go by what they hear. Then wouldnt this “secod opinion” equate to taking “tips” which you suggest to avoid?

  3. No Radical. The closest I have come to is to disclose his initials. In about 2 years his daughter will be married – and he will quit. He does 3-5 hours of meditation, gives discourses on Jainism (twice a week), does Reiki, broking is just there….

    I have said elsewhere – his fee for doing all this is not very high. But in this day and age where the airwaves are full of “choose any fund manager who charges less” very few people think it worthwhile trying to earn HONEST money giving advice. Most of them prefer private deals with a 10-20% cut of from the profits. God bless people who say such things on tv. God bless index funds.

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