There are some people who call me and ask me to review their portfolios. I no longer do that – I used to do it in the past. It is a thankless work with no reward for doing a good job.

However here are some characteristics:

  • Mostly these are inherited portfolios where the kid/ younger brother knows nothing about why a share was bought or sold. So they do not know the difference between a Nirlon vs a MRF – except that they have an amazingly different price.
  • They are in denial. ‘My father told me never to sell Tata Steel’ or some such shit. I know one man sitting on Patheja Forging hoping it will come back to Rs. 300 -which is aka denial.
  • Urgency: Subra shall I sell some MRF and buy some GMR Infra? it has fallen a lot. What can one say about such DIY geniuses who prefer direct investing and not mutual funds?
  • Denial that they have only inherited the portfolio, but the DNA did not give them the full Dna – the portfolio management skills of the parent was not inherited even in part. Most of such people are better off in Index funds if they have to do a DIY.
  • Bargaining with me!! – ‘Subra I realize I should not have bought GMR at 66, but at 33 is it too bad? And I go “dude, its your money, please feel free, my only request is ‘do not tell anybody that I am advising you!!
  • Resignation: “My portfolio is ruined” – at some stage they get into a resignation or depression, and their response is almost suicidal..

maybe there are others…I could think of just this many….

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  1. LOL – ‘do not tell anybody that I am advising you’, they just want a sounding board in you! They wanna see a nodding head at their ‘brilliance’ and somehow their trade call now has 100% extra weight!

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