Most stock pickers agree on one thing- 'Don't Fall in Love with Your Stocks'.
I asked why?
Someone (probably Peter Lynch; not sure though) replied back- "Because they can't love you back."
Mungerism inside me again shouted back- "Reciprocity in Love Also !!!!"
I tend to disagree with the above quote. I love all my stocks.
You have to agree that we love a lot of things which can't love us back. Be it Food (Pizza), Game (Table Tennis), Person (Sachin Tendulkar), Place (Gurgaon), Thing (Laptop) etc etc. So why can't we give the same love to our stocks?
I Love my stocks!!! All of them!!!
But Not Unconditional !! With my terms and conditions!!
Imagine a chat between Me and Mayur.......
I: I Love You.
Mayur: TILL WHEN ?
I: Till you keep on making good returns on capital & keep on either using the money at high rates or distributing it to me. And also till Mr. Market is not paying me too much to leave you.
At a time when we get so many stock predictions and stories and new information (most of which is Noise), only love & conviction with my stocks can keep me invested in them to get full benefits from them.
Some other potential answers could be Till you are a Cash Bargain/ Debt Capacity Bargain/ an Economic Moat/ Growth at Reasonable Price/ Asset Play/ Risk Arbitrage.
The key question in this Love (just like in most other Loves) remains TILL WHEN.
I leave too early, I miss out. I stay too late, I suffer!!!
.................................................................................................................................................................
* Terms & Conditions Apply
I asked why?
Someone (probably Peter Lynch; not sure though) replied back- "Because they can't love you back."
Mungerism inside me again shouted back- "Reciprocity in Love Also !!!!"
I tend to disagree with the above quote. I love all my stocks.
You have to agree that we love a lot of things which can't love us back. Be it Food (Pizza), Game (Table Tennis), Person (Sachin Tendulkar), Place (Gurgaon), Thing (Laptop) etc etc. So why can't we give the same love to our stocks?
I Love my stocks!!! All of them!!!
But Not Unconditional !! With my terms and conditions!!
Imagine a chat between Me and Mayur.......
I: I Love You.
Mayur: TILL WHEN ?
I: Till you keep on making good returns on capital & keep on either using the money at high rates or distributing it to me. And also till Mr. Market is not paying me too much to leave you.
At a time when we get so many stock predictions and stories and new information (most of which is Noise), only love & conviction with my stocks can keep me invested in them to get full benefits from them.
Some other potential answers could be Till you are a Cash Bargain/ Debt Capacity Bargain/ an Economic Moat/ Growth at Reasonable Price/ Asset Play/ Risk Arbitrage.
The key question in this Love (just like in most other Loves) remains TILL WHEN.
I leave too early, I miss out. I stay too late, I suffer!!!
.................................................................................................................................................................
* Terms & Conditions Apply
Great Post.... I know the great question that cannot be answered till when???
ReplyDeleteYou give Love a Bad name!!!.
ReplyDeleteLove is always unconditional my friend and that is the reason u don't really love ur stocks, neither ur wife for that matter.
At the expense of taking this conversation to spiritual bent, What has love got to do with our perverse motives in life.
Love is when the mind is not. And in all our worldly acts, we have our mind with all its conditioning and biases.
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