Hypothetical conversation between a GOOD INVESTMENT adviser and a potential client….
Circa 2007 end:
Client: Mr. Adviser I have some shares in my portfolio can you please tell me whether I will make some money on them!
Ad: Sure client, tell me which are the shares that you are talking about please?
C: The shares are Tata Steel, Bharti Airtel, Reliance Industries, and Hindalco.
Ad: wow, you have picked up good shares and when did you pick them sir?
C: Oh sometime in April / May 2008 at the mentioned prices: Tata Steel (900), Hindalco (183), Bharti Airtel (468) and Reliance (1285).
Ad: Well these are blue chips and I just saw that all the big large cap funds have these shares on THEIR portfolios…so these are really good shares.
C: Sir do you think I will make money on these scrips?
Ad: Of course, YOU will surely make money on all these scrips. In fact I am sure that in 5 years time these shares will be quoting at a much higher price.
C: Sir FIVE years!! Most of the advisers I meet are telling me that these shares will double in 3 years. In fact one adviser told me that Reliance will reach 2000 in 4 months time!
Ad: Can you wait for 5 years or are you impatient?
C: Sir that is not a problem, I can wait for a long time….should I buy more of the same?
Ad: No. Not really but however if prices come down by say 20% you should add another 1000 shares of the same….
NOW, 5 YEARS LATER IN 2013:
C: Mr Adviser can we set up a meeting?
Ad: Sure….do you want to invest more?
C: NO. ……just want to discuss my portfolio with you please…
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