Ramesh- Don’t Dare to try this again

Ramesh- Don't Dare to try this again

Ramesh, on the brink of commiting suicide got saved by Munna Bhai, Munna Bhai consoled him and infused him with the spirit to muster courage and tell his father everything,

What ‘everything’- Ramesh squandered all his father’s in the by investing unwisely. Unwisely denoting lack of a business perspective investment

Ramesh is no exception; we all come under the same breed of following the herd mentality and making speculative investments, thus giving enough space to people with a long term business perspective

What do you think could be the rationale behind Ramesh’s such pathetic fallacy, well quite blatant it would be to state that Ramesh led his money run on two emotions – Fear and Greed, It was his greed that provoked him to buy over priced stocks and his fear that induced him to sell under- priced ones

People become too easily susceptible to fear and greed and this ruins their investments thus providing harvest in which people equipped with financial intelligence reap. is highly volatile in the short run, it is manic depressive, with irrational mood swings, driving the price to surprisingly high and foolishly low.

Patience seems to be the biggest game changer in, people who are patient enough to hold investments for long make good profits, however who are very restive seem to end low

Another important aspect is to very well understand the transaction that you are making- many people like Ramesh are very reluctant to know about the nature, business economics, management of the company, they just call their brokers who do the needful for them. But what they forget to reflect is that brokers work for themselves- their mouth-watering ‘commission’

The phone kept ringing, finally Ramesh took the call, and to his surprise it was his enthusiastically shrieking out loudly – buy the shares of ABC ltd, do it sir, the train is pulling out of the station, and Ramesh hurriedly without giving a thought to his words, inflatedly states- yes Syndrome

But after six months it’s the same broker with a morose tone calling Ramesh- sorry sir but nobody can stop the earthquake, so is, something very unusual has happened and your shares prices have stooped too low to fetch you any profit

But you know what is the biggest irony , the broker is very happy because he is getting paid irrespective of the fact where the market stands, because he has so many people like Ramesh

So my friend , if you seemed to be very interested in investing in the markets , be assured of one thing that in the short run is just like a casino, where people gamble on short term fluctuation, you make profits initially but at the end of  the day you have only peanuts in your pocket, so be patient make smart moves and don’t be a participant of another rat race , invest from a business perspective and you could one day definitely be acclaimed with the title of Indian Warren Buffett

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