Monday, July 26, 2010

It is very hard to make profit in stock market..It looks hard to believe this sentence but it is true.Making profit for 4-5 months is possible but to sustain for years togather is very hard.That is difernce between Wareen Buffet and a simple investor.Warren Buffet is a great money is very hard to compound money for so many years and that is why Berkshire stock price is quoted so is the good will of Warren Buffet that is gving it a big discounting.
As soon as we have some profit, we start venturing in unchartered teritories, like playing in Futures and Options, day trading etc  and the end result is, we lose all the profit earned through make sure that you do not lose what you have earned so easily.
It is not easy to do away with this.Earning in ST is a very big greed one need to avoid.Human as a nature wants to make money fast without any hard work.
That is why I had always said, sell 50% as soon as the stock doubles and take your money out.To capitalize on your profit is a very very hard thing to do.So don't let any oppertunity go to capitalize on making profit and at the same time holding on to the WINNERS.......and for that remember not to sell the whole holding.Keep some for higher return.Selling everything makes no sense.

It is now coming directly from the horses mouth.....that we can cross previous high this year itself....Yes, Rakesh Jhunjhunwala has said that on money control to Udayan.....
I have written here many times but I got some advice.....that market is about to tank and we will see repeat of 2008 , then what will I have to say!
One of the readers also wrote me that July is going to be the worst month and then will be the chance to buy stock at bottom price....instead , market made a new HIGH and I hope that reader will have that much of courage to come out and accept that he was wrong in his prediction and that he needs to believe that it makes no sense for timing the thing is, buy when you see a value....don't look at the market......
I can see , many HNI's , experts and big investors and veteran people has missed buying stocks , just only on fear of global economy drifting on with double dip recession.
I heard RJ on CNBC and when he says that atleast he do not see any such recession in next 1 year, I think he has got more access and information then we have........
and let me write here if there is not going to be a big problem in next 1 year then we will see 30k before any bad news comes out .......I reiterate, we can see 30k before we see a good correction.....I may prove wrong on my prediction....
I know there are people who are always sceptic about anything.They always live in a fear atmosphere and they will always come out with that view......and I also know that some readers do not like atall my bullish view.....but I think , I have discussed in length why I am bullish or why there cannot be a double dip recession......but as I said, those who are bearish will always see those reason and also will see that in charts and will bring out patterns that will coinside with their view......


  1. Dear Rajeev,
    Nice to read your bullish views as always. Hope you are doing good and relaxing at your native place.

    I have some very good news on PSL Ltd.

    The shareholding pattern of june qtr for PSL is not yet out.
    However just check the announcement made by Reliance Mutual fund on Saturday. They now hold around 50,90,000 shares which is close to 9.5%

    Now just compare it with the march qtr shareholding pattern. Reliance Mutual Fund has added more than 7 Lakh shares in the last three months.

    I have a strong feeling that it is because of this accumulation that the price was kept low. And now that they have come out with the disclosure the share price will now reflect this reality.

    We all have known PSL to be an undervalued gem. What better confirmation than Reliance Mutual, who have the best knowledge about Indian companies, now owning close to 10% stake in the co.

    And also note that just a year back they owned 0 % stake. So 0% to 10% in one year goes to show how confident they are about the prospects of PSL going forward.

    Rajeev, you have always been ahead of the markets in discovering hidden gems. Thank you.

    (I have copied it from my profile in MMB)

  2. Dear Rajeevji ,

    I hold KCP right from the time when it was high around 450. Currently it is trading at 300 and stock is going for a split. What do you suggest ? Should go for stock rotation or keep the same. It IS A good dividend paying company.
    Thanks for your recommendations.