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22 August, 2007

SELLING OUT MEANS SHELLING OUT

The wild swing of stock market is putting us in defensive mood. Nobody is certain in which direction the stock market is going to take its next course. Pundits are of the opinion that it may further go down in a month or two for some weird reasons which are very complex to comprehend for a RSHI.
Now the question from small investors is: "Should we sell out everything we have in market to cut further losses?"
Now the answer is a "No, absolutely not".
The reasons are:
  • The present volatilities are the inherent characteristics of any stock market in short term perspectives. We should not worry over it. It is shown historically stock investment in long term perspective has always yielded positive gains. It is more so in the emerging markets.
  • Let's take, we have sold out our position in order to reinvest when the market is at bottom. So that when the market goes up our new investment will go up. Selling high and buying low, Simple logic. But can anybody correctly identify the bottom. answer is again a "No". The seasoned investor never tries to achieve this particular feat. We small investors mostly end up buying above our selling price. One famous pundit said once that it is a fallacy for a small investor is that, they always end up buying high and selling low.
  • Timing the market is nothing short of gambling. The odds are always heavy in gambling. So if we are not sure what the market is going to be tomorrow, we should simply stay invested till the wild YO-YO of the market is over.

20 August, 2007

THE BIGGEST BULL RAKESH JHUNJHUNWALA

There is only one Rakesh Jhunjhunwala in Indian stock market.
He is an iconic figure and has evoked lots of interest among the small investors. He said to have made his investment decision rationally, not out of fear or greed. I have come across his latest portfolio (July, 2007) at www.indiastreet.com, so could not resist noting it down for future references.
Company
%Stake
Shares
Price
Value
Praj Industries
10.72
9,000,312
436
393
Titan Industries
6.68
2,966,062
1300
386
Nag. Construction
6.6
13,750,000
196
269
CRISIL
7.63
550,000
4083
225
Lupin
3.5
2,817,000
712
200
Bilcare
11.62
1,650,000
1132
187
Pantaloon Retail
1.66
2,330,895
504
118
Karur Vysya Bank
4.83
2,606,808
351
91
Geojit Fin. Ser.
8.61
18,000,000
46
82
Prime Focus
6.94
882,500
890
79
Shushan Steel
2.35
1,000,000
738
74
Bharat EarthMove
1.47
538,767
1197
64
Hind. Oil Explor.
3.9
3,056,605
136
42
Viceroy Hotels
13.08
3,750,000
99
37
Aptech
2.04
879,775
368
32
Infomedia India
5.37
1,056,062
282
30
HEG
3.17
1,273,588
222
28
Punj Lloyd
1.93
1,008,000
273
27
provogue (India)
2.51
480,000
552
27
Geometric Soft.
3.51
2,175,000
118
26
Ramsarup Inds
9.22
1,615,020
146
24
REI Agro
2.16
970,295
203
20
Hercules Hoists
5.66
90,572
2110
19
Zenoteeh Lab.
3.87
1,116,381
170
19
Jhunjhun. Vanas.
41.11
3,083,200
54
17
Gemini Comm.
8.16
715,175
220
16
Agro Tech Foods
4.31
1,051,200
148
16
Mid-Day Multimed
4.47
2,250,000
48
11
Sarla Performanc
10.61
737,375
113
8
La Opala RG
18.66
1,977,382
38
8
Basant ,ll.gro Tech
8.8
701,000
53
4
Alphageo (India)
1.62
80,000
406
3
Century Extrus.
16.64
7,820,842
4
3
Rameo Systems
1.01
154,755
159
2
TTK Prestige
1.1
125,000
136
2
Orissa Inds.
32.38
2,356,875
6
1
Jindal Stainless
0.07
90,305
152
1
Maadhav Granite
1.4
125,000
101
1
Gomti Finlease
35
1,050,000
11
1
Frontline Corp
19.05
952,280
11
1
Vadilall nds.
2.86
205,578
47
1
Gangotri Iron
7.18
309,460
31
1
JSW Steel
0.01
13,124
699
1
OCL India
0.13
58,333
154
1
Pochiraju Industries
1.74
312,000
25
1
Nicco Parks
3.15
147,333
48
1
Yash Papers
3.27
708,804
9
1
Direct link: here.