Wednesday, September 11, 2013

As predicted the market has turned around in just one week

We predicted that extraordinary conditions do not last long as market forces starts to act and bring equilibrium in the market. Market has gone up by over 10%  in just one week or so and the banking stocks listed in our previous article have gone up by 14-20% . In fact, most of the other stocks have also gone up by over 10%. Is it not remarkable that it is so easy to predict the direction of the market.This is the beauty of this market. 

Remember our earlier articles where we said buy when there is blood on the street. How true is this in the context of game of investing, please mind my words, investing, not speculating. Rewards some times are immediate but most of the times we have to wait for the investment tree to bear fruits because, ultimately money has time value and will grow with the passage of time,if rightly invested in right and good businesses.   

Therefore, be a long term investor and look for businesses which are sustainable over long term, and are insulated from government regulations and controls, businesses which are simple to understand and operate, and where the management is passionate about such businesses and are running such businesses with utmost honesty and sincerity. Keep on adding to your portfolio such stocks which fulfill above criteria as and when they are available at throw away prices. And, please take my words, this market will continue to provide such opportunities provided we have patience to wait for such opportunities. 

Owning stocks is like running your own business and , therefore, select only those businesses which you understand and would be passionate to run with utmost honestly. Only, then one can create wealth in the long term.


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