Comments on: The Re-education of Nikhil Pahwa http://www.nikhilpahwa.com/2006/06/03/the-re-education-of-nikhil-pahwa/ In the realm of ideas, everything depends on enthusiasm; in the real world, all rests on perseverance Thu, 09 Sep 2010 01:44:01 +0000 http://wordpress.org/?v=2.5 By: The Unrest Cure http://www.nikhilpahwa.com/2006/06/03/the-re-education-of-nikhil-pahwa/#comment-442 The Unrest Cure Fri, 09 Jun 2006 02:30:00 +0000 http://www.mixedbag.in/2006/the-re-education-of-nikhil-pahwa/#comment-442 My initial reaction is one of panic. Then I call up my RM and get his take, which is always a short term one. Then I think to myself - "I'm already in the green. Whatever I have is a low-risk blue chip. The advantage of a correction is that the when it recovers, money that had moved out of mid caps and small gets transferred to the heavy weights." I keep going back to a statement I read in the 'the new buffetology' - if you own a business that is solid and is doing well, why would you want to sell off? I've realised that I'm more of a bear than a bull. I'm keen on bottom fishing, but for the life of me, I don't know what the bottom is. I don't think anyone does. The earlier perception was the mutual funds can't sit on cash for too long, so the market is going to recover. Just wondering - have redemption pressures hit Indian MF's? At the end of the day, this is a consequence of global meltdown and fast money being pulled out. We'll survive. Thanks. :) My dad bought Hero Honda at the IPO, and we sold it a couple of years ago because we'd set a target. I got badly burnt because of hasty selling after the pre-budget KP Rally at the beginning of this century, where I bought in without much thought. I keep hearing about tuiton fees to the market, and I guess that was where I paid mine. As much as I'll panic, I'll probably only take the money out if and when I need it. Still in the green... and very very very proud of my faith in Reliance, when I picked it up at 479 at the height of the Anil-Mukesh cold war. My initial reaction is one of panic. Then I call up my RM and get his take, which is always a short term one. Then I think to myself - “I’m already in the green. Whatever I have is a low-risk blue chip. The advantage of a correction is that the when it recovers, money that had moved out of mid caps and small gets transferred to the heavy weights.”

I keep going back to a statement I read in the ‘the new buffetology’ - if you own a business that is solid and is doing well, why would you want to sell off?

I’ve realised that I’m more of a bear than a bull. I’m keen on bottom fishing, but for the life of me, I don’t know what the bottom is. I don’t think anyone does. The earlier perception was the mutual funds can’t sit on cash for too long, so the market is going to recover. Just wondering - have redemption pressures hit Indian MF’s?

At the end of the day, this is a consequence of global meltdown and fast money being pulled out. We’ll survive. Thanks. :)

My dad bought Hero Honda at the IPO, and we sold it a couple of years ago because we’d set a target. I got badly burnt because of hasty selling after the pre-budget KP Rally at the beginning of this century, where I bought in without much thought. I keep hearing about tuiton fees to the market, and I guess that was where I paid mine.

As much as I’ll panic, I’ll probably only take the money out if and when I need it. Still in the green… and very very very proud of my faith in Reliance, when I picked it up at 479 at the height of the Anil-Mukesh cold war.

]]> By: whitelight http://www.nikhilpahwa.com/2006/06/03/the-re-education-of-nikhil-pahwa/#comment-441 whitelight Thu, 08 Jun 2006 22:54:00 +0000 http://www.mixedbag.in/2006/the-re-education-of-nikhil-pahwa/#comment-441 �It's absolute crap that people need to spend 60 hours a week analyzing companies, ... All you need are a few stocks to make money. If you find one stock a year, that's plenty. When I was running Magellan I had to find one a week but that was because I had billions of dollars. The average person needs only a few good stocks in a lifetime.� Another Lynch classic �It’s absolute crap that people need to spend 60 hours a week analyzing companies, … All you need are a few stocks to make money. If you find one stock a year, that’s plenty. When I was running Magellan I had to find one a week but that was because I had billions of dollars. The average person needs only a few good stocks in a lifetime.�

Another Lynch classic

]]> By: whitelight http://www.nikhilpahwa.com/2006/06/03/the-re-education-of-nikhil-pahwa/#comment-440 whitelight Thu, 08 Jun 2006 22:36:00 +0000 http://www.mixedbag.in/2006/the-re-education-of-nikhil-pahwa/#comment-440 Dude, if you are a real investor you should never get spooked by falling markets. Like you said you have been in the market since the last five years. Do you think it is worth panicking and getting out now, when we are so close to the bottom!? My dad has been in the markets since 1985. He has seen some hellish times and has never sold. Stocks like Gujarat Ambuja, SBI, Hindalco, Saw pipes, Shree Cements & Jindal Steel were bought at issue price by my father. All these stocks have compunded annually by average 32-35% in the last decade and a half!!!! 25,000 rupees of today's money(after adjusting for inflation) invested 15 years back is worth 10 lakhs now(and was 16 lakhs at 12500 levels). Nothing can match equities in the long term. And trust Peter Lynch when he says "I've found that when the market's going down and you buy funds wisely, at some point in the future you will be happy. You won't get there by reading 'Now is the time to buy." Not only happy, but very proud too. Dude, if you are a real investor you should never get spooked by falling markets. Like you said you have been in the market since the last five years. Do you think it is worth panicking and getting out now, when we are so close to the bottom!? My dad has been in the markets since 1985. He has seen some hellish times and has never sold. Stocks like Gujarat Ambuja, SBI, Hindalco, Saw pipes, Shree Cements & Jindal Steel were bought at issue price by my father. All these stocks have compunded annually by average 32-35% in the last decade and a half!!!! 25,000 rupees of today’s money(after adjusting for inflation) invested 15 years back is worth 10 lakhs now(and was 16 lakhs at 12500 levels). Nothing can match equities in the long term. And trust Peter Lynch when he says

“I’ve found that when the market’s going down and you buy funds wisely, at some point in the future you will be happy. You won’t get there by reading ‘Now is the time to buy.”

Not only happy, but very proud too.

]]> By: The Unrest Cure http://www.nikhilpahwa.com/2006/06/03/the-re-education-of-nikhil-pahwa/#comment-439 The Unrest Cure Thu, 08 Jun 2006 19:50:00 +0000 http://www.mixedbag.in/2006/the-re-education-of-nikhil-pahwa/#comment-439 whitelight: man, I'm not taking any risks. I think the media focus is going to scare a lot of people off the markets forever, at a time when they should be looking at a long term. I'M on the verge of panicking now, and my dad's also remained in the market only because of me. I still believe that the market will fall to and fluctuate around a fundamentally justifiable level in relation to developed markets. Shekhar: Thanks. Suddenly things gone out of whack and all the reading has been put on hold for research and study. whitelight: man, I’m not taking any risks. I think the media focus is going to scare a lot of people off the markets forever, at a time when they should be looking at a long term. I’M on the verge of panicking now, and my dad’s also remained in the market only because of me. I still believe that the market will fall to and fluctuate around a fundamentally justifiable level in relation to developed markets.

Shekhar: Thanks. Suddenly things gone out of whack and all the reading has been put on hold for research and study.

]]> By: mrajshekhar http://www.nikhilpahwa.com/2006/06/03/the-re-education-of-nikhil-pahwa/#comment-438 mrajshekhar Thu, 08 Jun 2006 18:25:00 +0000 http://www.mixedbag.in/2006/the-re-education-of-nikhil-pahwa/#comment-438 if you can get it, david halberstam's the reckoning. a superb account of how the jap screwed the american car industry. more on cars. "where the suckers moon" by randall rothenburg. subaru has just entered the us. and is looking for an ad campaign that can save them from automotive anonymity. the book is partly an account of the ad pitches the company sits through, each from an agency that exemplifies a certain approach towards advertising -- long copy vs mnemonics vs edgy... and then, about the process of creating the campaign itself. the best book i have read on advertising. bar none. on manufacturing. 21st century jet. making of the boeing 777. the first plane to be designed entirely with CAD. anything by drucker. the predictors. you will love this. a bunch of chaos theory whizkids use that to crack the stockmarkets. anything by michael lewis (especially since you seem to be liking barbarians at the gate). hope this helps... shekhar if you can get it, david halberstam’s the reckoning. a superb account of how the jap screwed the american car industry.

more on cars. “where the suckers moon” by randall rothenburg. subaru has just entered the us. and is looking for an ad campaign that can save them from automotive anonymity. the book is partly an account of the ad pitches the company sits through, each from an agency that exemplifies a certain approach towards advertising — long copy vs mnemonics vs edgy… and then, about the process of creating the campaign itself. the best book i have read on advertising. bar none.

on manufacturing. 21st century jet. making of the boeing 777. the first plane to be designed entirely with CAD.

anything by drucker.

the predictors. you will love this. a bunch of chaos theory whizkids use that to crack the stockmarkets.

anything by michael lewis (especially since you seem to be liking barbarians at the gate).

hope this helps…
shekhar

]]> By: whitelight http://www.nikhilpahwa.com/2006/06/03/the-re-education-of-nikhil-pahwa/#comment-437 whitelight Mon, 05 Jun 2006 20:28:00 +0000 http://www.mixedbag.in/2006/the-re-education-of-nikhil-pahwa/#comment-437 very true. F&O- are just like double edged sword. one needs huge cash to pay for the mark 2 market margin if your view misfires. but is a big addiction. you made hell lot of money in very short time and start to think same would happen every time. one lesson that i have learnt- if long in futures always buy a put option. very true. F&O- are just like double edged sword. one needs huge cash to pay for the mark 2 market margin if your view misfires. but is a big addiction. you made hell lot of money in very short time and start to think same would happen every time. one lesson that i have learnt- if long in futures always buy a put option.

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