Maithan Alloys Ltd

[The_Confused_Consult]

I am glad you find them useful. Somewhere during this weekend let us get into some serious money management stuffs. I have covered basic few under this thread:

Speculation to Technical Analysis- Mundane to Exciting

Speculation is an intellectual estimation in advance based on historical facts and figures. My mentor said which is something to similar to what Paul Tudor Jones said earlier. I did not have a choice to tap head and trying to focus on what he is saying. I asked are we saying we don’t need to understand business, or do a valuation even? Mentor cut me in middle, no I am not saying any such thing. Add speculation a layer to your investing philosophy, by the time I was shaken to the core some of boo…

Last week I got engaged to someone who has spent three decades on subject of money management. No need to say I was blown away with his superior deliberate practice but once again I felt incredibly stupid and vulnerable.

I guess the cycle starts, then re-cycles again and again. Ultimately it depends on us as to how to distil the information than getting overwhelmed due to name and fame or any other aspect. I have been guilty of these random thoughts and still now perhaps! Few pointers:

1. A jam pack crowd glued to an expert (with good fan following!) couldn’t demonstrate a face which is not American or a product which is not American or a book! The guy sitting next to me was confused for 30 minutes (whether Dalal Street or Wall Street) before we decide we won’t be bhakt again and VALIDATE everything before shouting jai ho.
2. Easy information and resources (like online forum, free website etc) brought enormous psychological battle to mind of ordinary investor without VALIDATION process. I wonder when an news paper or regulated news paper publish certain things, have they audited the process of particular individual or company? Perhaps the rudimentary reading will be the next biggest reason for wealth destruction of ordinary investors like me.
3. Have we even bothered Larry Williams cracked 1.1 Million from 10000 in one year (not some random article, US investing champion, AUDITED by EY). He is not alone, many goes on cracking more than 100% return on capital for years. Then it is up to us to lend an ear and try to understand whether these statements have any value to out investing philosophy.
4. The nature of speculation has never changed since 100 years or plus. Whether forecasting process of institutions, mis- selling of DCF by same guys, crowd foot print for money management, mathematical expectancy! Then who is trying to stop us, and of course then why do we get stopped in first place?

Let’s spend some quality time on behavioural finance and money/risk management. We will able to liberate ourselves from certain beliefs.

If not biggest winner why not best loser?