Wednesday 25 March, 2009

Think Uniquely and Never Miss Opportunities!

The inspiration behind writing this blog came to me while reading the book Differentiate or Die by Jack Trout. Indeed I felt how tough being unique today really is. I suggest you as well to read this book, a very good book which illustrates what the end-user expect from the companies we work in today.

We have seen so many among us (include me as well ;-)) who have already burnt our hands in the scorching heat of the stock market tumult. So, the result is very evident, we tend to distance ourselves from the stock market after making such losses. But, you know what? We are missing a golden opportunity by doing that. An opportunity of lifetime! Now, what on earth is that which we are missing and ain't aware of? The "Bluechip"!!! Let me start with defining this proposition and then coming to the point. By "Bluechip", we mean a company which is well-established, regular dividend payer and which doesn't have much of liabilities. To know more about it, I suggest the reader to go through this link. There are a bunch of companies in India as well which can be called Bluechip, when I refer to looking for opportunities, I mean only the stocks of these companies. Now, I won't give a comprehensive list of those stocks here, it is something which the reader can figure out by keeping a regular watch at the stock prices atleast for a minimum of a month or so.

The Bluechips are available in the stock market for very cheap prices, when I mean cheap, they are indeed dead-cheap. Buy them when there is so much of pain in the market. An example of this would be the day of Deepavali in the year 2008. There was bloodshed everywhere. This is one example of what we call, the right time to enter the market. Subsequently we saw a huge rally !!! But we've got to be very choosy/picky in selecting the stocks to call them as Bluechip for e.g., liabilities shouldn't be more i.e. not higher on the debt. Don't buy stocks of some bullshit companies just because they are available for Rs. 30 or Rs. 40, they involve a lot of risk esp. rule out stocks whose owners have a Andhra origin (I don't want to generalize this, but it's a known fact and it has been my personal experience, out of 10 people, it's very difficult to find 1 person who is not corrupt, non-manipulative, most of them have fake degrees, fake certificates, fake experiences).

I'd give a story from "The Pursuit of Happyness" to say: never missing an opportunity. Pl. watch this video at Youtube and you'll understand it for yourself.


I finally say, it needs a "heart of a tiger", a Braveheart to remain invested in the stock market. Keep invested long and be very selective, speculative, paranoid in choosing your Bluechips.

7 comments:

Sandeepa said...

Nice writeup Abhi!

Don't you think by telling about the book you just reduced your chance of being unique a bit? ;-)

Abhijit Apte said...

Well, nope I don't feel. I believe everyone should become aware of stuff in that book and then plan how they want to be unique.

My uniqueness still lies in the bluechip stock selection which I haven't disclosed right?

Anonymous said...

Did you mean the Pursuit of Happyiness :)

Abhijit Apte said...

Yes, I was referring to the film "The Pursuit of Happiness"

Anonymous said...

I remember an incident in that movie when Will Smith gets angry on a man for misspelling the word Happiness with Happyness.

Raghu said...

Well Abhi the day u wrote this blog if u would have bought some stock(i hope u did) it would have gone up by big margin by now :)

I belive in the very old concept of buy and hold. When the market crashed many pundits said that buy and hold is all for old time and it doesn't work for in volatile market but still its the one to give good reap.


Along with the bluechip i believe in buying share of companies which are innovative.

Abhijit Apte said...

Yup Raghu, I did buy those bluechips, booked profits, and thereafter had to re-enter in some of my favourite picks. So, the buy and hold strategy pays, it is actually the patience which will pay. NHPC is still available at <36 and accumulating them would definitely give good returns, but it'd take around 3 years to get a double on the investment. I've realized that in our market, there are plenty such opportunities.

Companies which are innovative like Tata Motors is a definite buy. :)