It is amazing how people will not do simple things to make money! Start early, index your investments, do not interrupt the compounding process…..but will continue to do stupid things.
In 1600 it was tulips, in 2012 it was Social Media!
The fall in market capitalization of Groupon is about US $ 20 billion, and hey Facebook fall is US $ 34 billion….
By any stretch this is not small change. The market capitalization of ITC is about US $ 35 billion. Does this comparison show you the extent of the fall?
Who has lost money in the process? Yup Tom, Dick and Harry.
What worked? Media hype! ‘800 million people are on FB’. Fantastic, will somebody please, show me the cash flow please?
It is the next Google in the making. Great. Who made the tons of money in Google? the initial investors and funders.
When you are asked to invest, the HOLY GRAIL is simple “Boss, show me the cash”.
The stock exchange’s role has changed. It is no longer a place to ‘raise’ money. The market is now an end in itself. Market capitalisation, the spread, transactions, are FnO products available?….)
Who pays the price? Bali ka bakra.
So when there is an IPO, see why the company is going public. T C S was a good issue, Biocon did not add too much value to the investor. Coal India is running a -ve return for its dollar investors. NHPC is running a loss for all its investors!
Be godammn careful when you sign the cheque. It is your money, dammit….
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