2)Gul Tekchandani
Chief investment officer, Sun F&C Asset Management
Every time I blunder in the market, it's because of excessive greed.
When share prices move up and I hear favourable stories, I don't think
of selling and always hope to make more. I remember buying shares of a
plastic furniture company at Rs 30. I had analysed the company and
predicted the stock would go up to Rs 90. I was right: the price touched
Rs 110. That's when I started hearing stories of the company doing so
well that the price would touch Rs 200. So I decided to hang on, in
spite of knowing better. Today, the stock trades at Rs 6.
Lessons:Discipline is the key.The market has a mind of its own, one
which is quite likely to confuse investors. You cannot make money in the
market by acting on market rumours. Listen to the stories, but do your
own research–and do it thoroughly. Make your buy or sell decision based
on your analysis of the company, not on what others have told you.So, if
you have invested in a company for the long term, and the price falls in
around three months, don't change your strategy. The company's
fundamentals have not changed–it's the market that's volatile. In the
long term, the fundamentals will reward you.Keep track of your
investments. However, investing for the long term does not mean you
forget about your holding. Stay alert, and monitor your stocks with a
view to improving your returns. Keep an eye on the changing economy,
because the fundamentals of a company are dynamic and change with the
overall economy.
No comments:
Post a Comment