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…

lol…………lol……………