18 August 2009
A LESSON LEARNT
When I started investing in equities, my 'Guru' told me to read, read and read more. So a good disciple that I was, I commenced reading on whatever 'literature' I could lay my hands on - directly or remotely associated with investments. (A sifted part of that reading is placed on my 'Shelfari' on the right side of the blog posts).
However the purpose of this post is not to give an expose' on my literary jaunts but to share a valueable lesson learnt.
In 2005, I read Peter Lynch's 'One Up On Wall Street'. Wonderfully written, lucid and jargon free, it appealed to me and I promptly wrote down all the lessons learnt. I proceeded to follow the underlying theme - use what you already know to make money in the market. Buy a stock whose product you use and like and you know a lot of people who feel the same way about it. Not in those many words but I gathered that was the general drift of the book.
That's pretty sound advice. Provided you can bridge the gap between knowing and doing. So I did!
I have watched CNBC TV18 since - well probably back in 2000-01. I spent bulk of my TV hours watching it. My friends who invested did the same. Loads of my colleagues talked about it. I based a few of my early decisions on the discussions on its shows and liked the results too. The anchors are sophisticated, suave and critical without being offensive and not in the least pretentious.
So I went and bought the stock. Loads of it. I still like the channel. But not the stock. What happened? The annual report I read this time. Its amazing. Read about it in my next post.
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