Arbitary Obsessionist's Blog : Ambition is redundant. In life, mission is everything.

Your attitude is your INVESTMENT

leave a comment »

I must say, I have been very very fortunate to have read INTELLIGENT INVESTOR by Benjamin Graham.
And as Warren Buffet said – “It’s by far the greatest book ever written on investing.”
And as you all know, there is no point doubting God’s own words…
;-)For me the I2 (that’s what I love to call INTELLIGENT INVESTOR), has been more of a workbook than just a book. It’s the constant guiding beacon for my investments as well as provides me with a larger-than-life playground to test my investing experiments.

So let’s get down to business of investing.

What is actually investing?
An investment operation is one which upon thorough analysis promises safety of principal and adequate returns. Operations not meeting these requirements are speculative.
An investor must always recognize the existence of a speculative component in his holdings. And it his job to keep the speculative component under check.

Now I ask – Can you predict the market movement?
It makes sense to believe you can predict something only if it actually is predictable. Right? And market is fundamentally unpredictable. It’s so because the market depends on the forces of demand and supply and these in turn depend on minds of people. Then how the hell can you even try to predict the behaviour of something as unpredictable as the mind of a large group of individuals?
But one thing is for sure – markets will fluctuate 😉 …and that is obvious.
What we need to do in the market is to buy from the pessimists and sell it to the optimists.

And no matter how careful you are, the one risk no investor can ever eliminate is the risk of being wrong.
And actually speaking, successful investing is all about managing risks and not avoiding them.

Some stupid people believe in something more stupid called luck. Behind this luck, lies the fundamentals of planning, preparation and execution.
One must be sufficiently prepared, when the opportunity knocks on the door. You must have the means, the judgement and the courage to take its advantage.

And what happens when you leave everything to chance and speculate in the market – all of a sudden you don’t have any more luck. You get painted red in the market.

So what I would suggest is that be prepared to do your homework before investing because it requires a great deal of preparation, boldness and caution to make a great fortune, and when you have got it, it requires 10 times as much wit to keep it.

And listen…

…there will never be an invitation to make profit….

So be prepared….


Written by Dev

October 26, 2007 at 9:34 am

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: