Comments on: How much can you lose in equity?

By: subra

subra — Fri, 27 Jul 2012 14:16:14 +0000

http://in.finance.yahoo.com/news/how-much-can-you-lose-in-equity-.html

By: gautham

gautham — Fri, 27 Jul 2012 03:20:21 +0000

Subraji,
I assumed so looking at the tone of the responses. Glad it didn’t.

Sukumar, In one of the recent posts he warned users about blindly copying his stock picks. The same can happen with these rules too right?. I was making a point that, the business is the first thing one should look at while investing. This is nothing new. The legends lynch,fisher,buffet advocate on the same. Not so in case of graham who believed mainly in intrinsic value. (which even buffet didn’t like later on)
Anyways looks like you don’t like if someone expresses his/her views.

Btw sorry for dragging this. Just wanted to clarify. My last post here.

By: subra

subra — Thu, 26 Jul 2012 14:52:58 +0000

gautham

to hurt you should love first, right? I am just clarifying – a stranger cannot hurt….To hurt there has to be a financial or an emotional relationship.

A guy passing by CANNOT hurt – as simple as that.

By: gautham

gautham — Thu, 26 Jul 2012 14:37:30 +0000

@Sukumar. somehow I missed your post. even my post was for someone who is entering the market. well, if one doesn’t know what he/she is buying, why he/she is buying and at what valuation, then one shouldn’t take direct equity route. that was what i was trying to say. to identify moat, one doesn’t need an MBA. perhaps lynch’s one up on wall street ?

By: gautham

gautham — Thu, 26 Jul 2012 14:11:08 +0000

hmmm. its good that those strategies worked for you.. my point was that for readers who wants to start investing (not trading), it may not be the right way to go about it. of course its my opinion and opinions differ. it seemed to have hurt you. my apologies.

i liked what MangoMan mentioned in the moral of the story in his post. that is exactly the majority of the retail investors do.

sorry. for some reasons i am used to refer to fisher as phisher !.

By: MangoMan

MangoMan — Thu, 26 Jul 2012 13:26:52 +0000

Surely the questions are from the brilliant lot
My own brilliance took center stage few years back, when i invested in a single (yah just 1) share of Subex at 650 odd. Of course the trading/demat a/c was sold to me by icici. I used to work in the same domain as Subex’s business during that time. What could go wrong with that brilliant Lynch concept of investing in what you know.

First thought of stop loss hit me, when the stock was around 300. But icici made my day saying, the amount is lower than what i can sell in a single transaction. So i had to stay put.Now the stock is trading at a princely sum of 20/-. Let’s not bother to calculate the %tage loss.

Also, in the few years while i was just holding the single share i also kept on paying icici for annual maintenance charges (roughly 500/- ?).

Only foolish thing, which i did was, i just bought one share and never averaged. Had i bought shares worth few thousand rupees, am sure by this time i would have already written obituary to stock market and investing in only FD’s and PPF.

Moral of the story for me. I didn’t have stop loss ? Naa…. it is, I didn’t know a damn thing about the company and how to evaluate it’s economic performance.

Regards

By: Pawan W

Pawan W — Thu, 26 Jul 2012 09:36:14 +0000

Good one, I liked this post and the way you explained.
BTW I am a regular reading on this blog for quite some time and this is my first comment.

By: Jitu

Jitu — Thu, 26 Jul 2012 06:46:07 +0000

Informative…..liked the article and the last para…well just too good….

By: Mira D

Mira D — Thu, 26 Jul 2012 06:24:11 +0000

Good one, Subrabhai.
I will reserve the rest of my comments.

By: shrinivas

shrinivas — Thu, 26 Jul 2012 06:16:03 +0000

25% limit is a good limit, I have seen so many stock-prices fall so freely that I have lost 90% of the value and still not recovered. Fundamentals may be good, but once you lose 90% of the value, it takes forever to recover that and you are better off taking loss and investing elsewhere.