My blunders continued….

Over the last few months, I think I have underperformed the market. No clue simply because I do not remember ALL the transactions that are worth comparing.

Let me clarify. I do trade on the portfolio that I hold. So if say I have 5000 Cummins and I feel it is over priced at 535, I may sell it off, HOPING to buy it back at say Rs. 25 lower. This reduces the cost of the holding, and apart from the dividend improves the long term yield on the shares held.

So I did do a few transactions – and generally made money or making money as of now. However I may do it on say 1000 shares instead of doing on the whole portfolio.

Using this strategy had been useful. However in a sudden rush of blood I went and bought Hindustan Oil Exploration at a price of Rs. 102. This share is now at Rs. 30 or thereabouts. One transaction whether smart or no has taken me to the cleaners – or so to say!!

I also did some things – like buying Speciality Restaurant – at a price of Rs. 155, but had the LUCK of selling it off at 182….(well not purely luck, saw volumes developing, so sold off)….but even now it is at a HIGH PE …so it was a foolish decision but got lucky…

Bought Bharti at 281, then saw it going down yesterday to 277….keeps me bullish still….

MISTAKE? Not keeping a stop loss. BUT HEY I AM AN INVESTOR….why should I keep a stop loss?

It is a during such times that you realize that one need not call oneself a trader, investor, speculator, value investor, growth seeker – after all one is in the markets to make money.

The maximum amount of money that I have made in equity markets is by wearing the hat of an investor. In fact being an investor has helped me in my training bit as well. Sure, when I am training people in a brokerage house, I have problems saying trading is better than investing.

But hey remember he who pays the piper calls the tune!

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7 Responses to “My blunders continued….”

  1. very funny , but real indeed! i thought it happened my case only ,holding investment without stoploss!

  2. And I had NO idea Idea and RComm were going to soar after I sold them… isn’t this a commodity business? isn’t there a regulatory overhang? penalties?
    But yet, but yet…

  3. glad to know that even an expert like u is losing some money :p

  4. Subra,

    you are lucky that you were not stuck in some midcaps which now are penny stocks in matter of few months, like Opto circuits, IRB Infra , Sintex (A segment), somehow i feel all Indian companies are not worth investing and better to put the money in debt as you never know and just in few days all your value will be eroded, see recent case of G Gems, its very dificult now to identify multibaggers like cummins, coro, Karur etc.

    Index is no where since 5 years, inflation is eating the money, very scary outlook.

    planning to buy two stocks now for few years and relax…ICICI bank and Tata Coffee.

  5. one more problem with indian equity investment is, i think, prevailing, ever increasing black money economy. it is seen that it exists in almost all corporate companies. so some part of profits go into the promoters’ coffers , leaving less or nothing for equity investors

  6. I use to hold Opto Subra Sir. Although the model still looks attractive; the way the management worked on the debts, working capital and free cash- it was very disappointing.

  7. Rakesh created empire__how?

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