A new (and improved) certain multibagger & Fundraising appeal
I am in the process of shortlising another good pick and potential multibagger, I need to establish contact with management before writing it publicly to be more convinced. I hope to have it out for you in next few days.
If you guys do end up making money from recommendations here and you would like to give any credit at all, I would urge you to donate to a charitable cause that I believe to be noble. Your money is well spent on restoring eye sight of people who cannot afford it. For a 500Rs donation you can get cataract surgery for the under privileged, or sponsor a child’s education for 2400 Rs per year.
Please do keep atleast 30% of your funds in FDs at this stage, especially if major part of your material wealth is in stocks. To put things in perspective, if you structure your portfolio with risk averse attitude, you will certainly win in long term, its certain. If you keep all money in stocks, especially if its all liquid money you have, then you will eventually lose. Every 7-10 years a major bear market grips, and if you are 100% invested you’d go down with it, which is fine as long as you can keep adding to positions. If you can’t, then you’ve lost a beautiful opportunity.
To give numbers to the above idea, if you are 100% invested and compound @ 20% for first 9 years and in the 10th year you get negative 15% returns, you lose out to risk averse investor that keeps compounding @ 16% throughout the 10 year cycle.
I am cautiously hopeful of killing sensex next year with out performance, I believe our idea pool is ready to rumble. All credit to One who does not talk about Himself. I actually cannot help but post a poem that is so awesome in the next post.