Friday, August 15, 2008

Investment Jokes, Trading Jokes, Business jokes

Some of the jokes I liked...

Bull Market:

Is a random market movement causing an investor to mistake himself for a financial genius.

Bear Market:

Is a 6 to 18 month period when the kids get no allowance, the wife gets no jewelry and the husband gets no sex.

Funny Quote:

When asked what the stock market will do, J.P Morgan (1837-1913) (banker, financier, businessman) replied:"It will fluctuate."

Funny Story:

A woman walks into a bank in New York City and asks for the loan officer. She says she’s going to Europe on business for two weeks and needs to borrow $5,000. The bank officer tells her that the bank will need some kind of security for such a loan, so the woman hands over the keys to a new Rolls Royce that’s parked on the street in front of the bank.

Everything checks out, and the bank agrees to accept the car as collateral for the loan. An employee drives the Rolls Royce into the bank’s underground garage and parks it there.

Two weeks later, the woman returns, repays the $5,000 and the interest, which comes to $15.41. The loan officer approaches her and says:

“We are very happy to have had your business, and this transaction has worked out very nicely, but we’re a little puzzled. While you were away, we checked out your accounts and found that you were a multimillionaire. What puzzles us is why would you bother to borrow $5,000?”

“Well, where else in Manhattan can I park my car for two weeks for fifteen bucks?”

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To trade or invest during 2008?

Throughout these months I am torn between two ends - Should I sell off and book profits when the market moves up and re-enter again at lower levels or Should I just hold and follow the buy-and-hold strategy. I am sure many of you would have faced this dilemma. I still could not decide which one to follow. I basically want to follow the buy-and-hold principle but the markets are too volatile during this year where it really makes sense to sell at higher levels and re-enter later when the markets crash. Of course it is not known if the markets will crash again but there are too many factors that point to the inability of the markets to hold higher levels for a sustained period of time.

So trading can give you at least some returns during these volatile times but it is against the principle of investing. I have seen many stocks which were 10-15% in the positive and now they are way down at -20%. Is this loss of opportunity to make a decent return? Or does it make sense to just stick to your principles?

I am not able to decide on one. For the moment I am prepared to sell off stocks that are sensitive to interest rates and oil prices at higher levels and hold on to ones, esp technology, that I perceive as relatively stable. One drawback is of course if the Oil continues to fall then I can miss out on higher returns as these rate sensitives can move up pretty fast. This is a learning phase for me so I am just prepared to make mistakes and learn.


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Sunday, August 3, 2008

Selling BHEL and Crompton Greaves after Congress victory a good choice?

This is a follow-up to this post where I wrote about my decision to sell BHEL and Crompton Greaves immediately following the victory of the Congress government. Reason being that I thought those highs were due to public euphoria and optimism than anything else. Both of these stocks went down from the very next day onwards. I see BHEL move back to 1750 region and I still believe that BHEL will be a good buy around 1450-1500 which is where I would like to get in. And I see Crompton Greaves moving in a range - 225-250, it has been doing so for quite a while. It is a good stock and I will get into it around 220. That is the price I am comfortable paying and holding for long.

So, for now, decision to sell seems to be good but I can't say it conclusively until I can get back in to these stocks at the prices that I am comfortable with.