The Indian Economy Blog

September 22, 2005

As With Jobs, So With Stocks

Filed under: Capital markets — Amit Varma @ 2:21 am

Gautam Chikermane has an excellent cautionary tale in the Indian Express, the point of which is this: you should exercise the same caution while buying a stock as you would while accepting a job somewhere.

That’s precisely why I have no sympathy for schmucks who lose money after a mad bull run ends. If they invested because they had studied the fundamentals of a company and believed in it, they wouldn’t go and get themselves into trouble. But they rush blindly into speculative frenzies, driven both by greed and self-deception, and have the audacity to blame the system when they lose big. What would the “market manipulators” manipulate if there weren’t doofuses around wearing notional t-shirts that say: “Bakra”?

4 Comments »

  1. Ya – but since when did the Indian Economy Blog start stating that the Sun did rise in the East?

    Comment by Nilu — September 22, 2005 @ 1:15 pm

  2. Hey check out this link http://spaces.msn.com/members/newworldeconomics/. does this person make sense because to me it sounds like yes. I am sorry to say. Is india a failed state.

    Comment by Rahul — September 22, 2005 @ 4:51 pm

  3. “Investors” have no problems when the market goes up, even if it’s because of these “manipulators”. Every investor thinks she/ he’s making money because they’re the heir-apparents to Buffett.

    Of course, when the markets go down, it’s someone else’s fault.

    This sort of thinking is almost universal — and more so in India, given that our markets are less transparent, and the investing public less informed.

    Comment by Prashant Kothari — September 23, 2005 @ 3:38 am

  4. I agree with Prashant ( Kothari ) that in every bull run each individual starts to rate himself and his “khabariya” as no less than Warren Buffet. But time and experience teaches me that these very local buffets of ours invariably exit in losses and then blame some scamster for their loss. Penny stocks and worthless stocks or over rated stocks are responsible for the losses most often. I urge investors to chase value and not value chase. If they shase value then value ultimately survives while if the value a chase then the chase will make then end in a garbage dump where one more dude will be dumped.
    Hot money has taken Indian Stocks to great heights and rags to riches stories are ones which attract the fresh blood to the jungle only to be ultimately hunted down by the lion.
    I am not a stock market hater but am a addict but just want to caution people that go for wealth creation and not for getting rich.
    Thanks and Regards

    Bharat Agarwalla
    CEO – Ways2gain
    http://www.ways2gain.com

    Pls don’t change the Subject line and also make sure when you reply to the email of ours, then the FULL SET OF EMAILS are below and your reply on the top.

    Comment by Bharat Agarwalla — January 26, 2006 @ 5:41 am

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