Saturday, December 24, 2005

Manmohan Will Take Markets to 2900!

78th Annual General Meeting

Salient Points

  1. The Indian economy needs a massive dose of investment in the foreseeable future. We need investment in every conceivable area. The decade ahead of us must be a decade of investment.
  2. I do not accept the proposition that India can skip the manufacturing stage of development and go from being an agrarian society directly to becoming a services and knowledge-based society. This is a mistaken view.
  3. Reports are mixed about the results in textiles this year. We cannot miss the opportunities which we once did in the 1960s.
  4. If it requires modifications to our labour policies to provide greater flexibility which in turn will generate more jobs, we will work with all stakeholders to generate a consensus on this.
  5. Many of you have concerns about our tax system. Over the last two years, we have moved towards lower tariffs, uniform tax rates and easier procedures. There are still some concerns. I promise to address these concerns over the next year.
  6. Some steps are already being taken to remove fuel constraints, increase captive coal production, having mega coast based power projects and improving operations of power plants.

Wednesday, December 21, 2005

Egotized Trading

In her article, Trading Without Ego, Ruth Barrons Roosevelt says that typical symptoms of egotizing trading would be the following:

  • Not putting in stops. The ego doesn't want to be proven wrong.
  • Hesitating before putting on a trade. The ego wants reassurance before it begins.
  • Overtrading. The ego wants to prove itself big time.
  • Getting stuck in a trade. The ego has intertwined itself with a trade and is holding on for dear life. It cannot cut out. The ego doesn't want to be wrong.
  • Adding to a losing trade. The ego digs its hole deeper in a massive effort to crawl out.
  • Grabbing a profit too soon. The ego wants a pat on the back.
Read the entire article here

Monday, December 19, 2005

Why Lipitor is So Important to Pfizer

Click to know!

Friday, December 16, 2005


One evening, I was chatting with someone who gave me this piece of wisdom.

He said: Don't hanker after success–see success only exposes your limitations. Do you say you "successfully" drank a glass of water? No. Why? Because drinking from a glass was "always" within your limit.

Success means chances of failure. Be limitless and timeless.

Friday, December 09, 2005

13 Most Unconventional Investments

Investing requires a lot of spunk and the ability to see things when none can see it. Ridicule is an occupational hazard when investing with vision, and failure a necessary event.

Back in the late 1950s, Warren Buffett and his friend Tom Knapp cornered the market on 1954 Blue Eagle 4-cent airmail stamps. They found out that the 400,000 stamps were nearly worthless—plus the sheets kept sticking together. Buffett sold much of the lot at 10% of face value.

Read about the world's 13 Most Unconventional Investments.

Sunday, December 04, 2005

The Importance of the Number Three

The number three shows up very often in technical analysis of stocks. Major bull and bear markets have three important phases. There are three kinds of gaps, the commonly known reversal patterns, such as the triple top and 'head and shoulders' have three peaks. There are three major classification of trends: major, secondary, and minor); and three trend directions (up, down and sideways). Among the generally accepted continuation patterns, there are three triangles–symmetrical, ascending and descending. THere are three principal sources of information–price, volume and open interest.

For whatever reason, the number three plays a very prominent role throughout the field of technical analysis.

Excerpted from Technical Analysis of Financial Markets, by Joesph Murphy

[Author's Note] Interestingly, there are three persons in the Christian Holy Trinity (Father, Son and Holy Spirit), and three persons in the Hindu Holy Trinity (Brahma, Vishnu, and Mahesh)

Friday, November 25, 2005

Kipling's Poem for Every Trader

IF, written by Nobel laureate and poet Rudyard Kipling is a must-read for every trader. It provides a list of qualities that a successful trader must possess, even though the poem itself was written for the general audience.


If you can keep your head when all about you
Are losing theirs and blaming it on you,
If you can trust yourself when all men doubt you
But make allowance for their doubting too,
If you can wait and not be tired by waiting,
Or being lied about, don't deal in lies,
Or being hated, don't give way to hating,
And yet don't look too good, nor talk too wise:

If you can dream–and not make dreams your master,
If you can think–and not make thoughts your aim;
If you can meet with Triumph and Disaster
And treat those two impostors just the same;
If you can bear to hear the truth you've spoken
Twisted by knaves to make a trap for fools,
Or watch the things you gave your life to, broken,
And stoop and build 'em up with worn-out tools:

If you can make one heap of all your winnings
And risk it all on one turn of pitch-and-toss,
And lose, and start again at your beginnings
And never breath a word about your loss;
If you can force your heart and nerve and sinew
To serve your turn long after they are gone,
And so hold on when there is nothing in you
Except the Will which says to them: "Hold on!"

If you can talk with crowds and keep your virtue,
Or walk with kings–nor lose the common touch,
If neither foes nor loving friends can hurt you;
If all men count with you, but none too much,
If you can fill the unforgiving minute
With sixty seconds' worth of distance run,
Yours is the Earth and everything that's in it,
And–which is more–you'll be a Man, my son!


Kipling was born in Bombay in 1865. Born: December 30, 1865, Bombay, India.
on December 30, 1865, in the J. J. School of Arts, of which, his father, Lockwood Kipling, was then head.

At the age of six, he was left in a foster home in England. He was extremely unhappy at his foster home, but stayed there until 1878, when he entered a boarding school in England. His later writings indicate that he was happy at school, where he started writing.

He returned to India in 1882 and joined his parents in Lahore where he worked as a journalist with Civil and Military Gazette. In 1887 he joined The Pioneer in Allahabad as an assistant editor and overseas correspondent.

Passion: The Founding of NFM

Rose Blumkin, aka 'Ms. B', started Nebraska Furniture Mart (NFM) in 1937 with $500 of friends and family money in her basement. She couldn't read or write and had never attended school at any level but built the largest furniture retailer in the region. NFM was sold to Mr. Buffett in 1983. After a difference of opinion with the current management team, Mrs. B started another furniture store at age 97. She sold this new furniture store to Berkshire a few years later, at which time Mr. Buffett wisely required her to sign a 10-year non-compete agreement. Her greatest asset was her passion, a pre-requisite for business success according to Mr. Buffett.

Click to visit Nebraska Furniture Mart.




Consider how the crisis has unfolded over the past eighteen months. The proximate cause is to be found in the housing bubble or more exactly in the excesses of the subprime mortgage market. The longer a double-digit rise in house prices lasted, the more lax the lending practices became. In the end, people could borrow 100 percent of inflated house prices with no money down. Insiders referred to subprime loans as ninja loans—no income, no job, no questions asked. - George Soros in latest book

everything’s going up, there’s a feelgood factor and people tell each other how much their houses are going up at dinner parties,” says Professor Mark Stephens of York University’s Centre for Housing Policy. “Then the music stops, as it always does.”

year, Japan was a more attractive market to put money in. If you look at the US, we can now get an internal rate of return of 25% there, so why would anyone want to come to India?” - a senior executive at an international financial services group, who did not wish to be named.

people told us house prices never go down on a national level, and that there had never been a default of an investment-grade-rated mortgage bond, "Mortgage experts were too caught up." - John Paulson, trader, who bet against subprime market and made $15 billion.

most puzzling are the real-estate projects of Parsvnath. Just have a look at the Pride Asia project near Chandigarh. They are asking almost US $300K-$350 K dollars for 2 bed room apartments. They have Villas in this project that costs more than US $1.5 million dollars. It is true that some people in India have that kind of money in India. However most of their wealth is black money and that can not be used to buy these properties. Obviously, these projects have been launched keeping NRIs in mind. - Sanjeev, comment from another site

Desai, aka Bani, the star of Balalji Telefilms's soap, Kasam Se, has been house hunting for over a year. She had almost closed a 2-BHK deal last year for Rs 1.5 crore in a Oberoi Constructions' building located at Andheri, Mumbai, but when she went back to confirm it, she was asked to cough up Rs 2.61 crore. Since then, she is still house hunting. - Mumbai Mirror


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