Loss aversion bias….

Posted Leave a commentPosted in Loss aversion, multibagger, Peter Lynch

 Here’s an example of a bias called as ‘Loss aversion bias’ See below example: Question:  Choose between:A. An 85% chance of winning $100 (the gamble); orB. A sure gain of $85 (the sure thing) Most people when given these choices, pick B because they think of themselves as conservative and after all a bird in hand […]

Operator way : Pump and Dump !!!

Posted Leave a commentPosted in high profile investor, kitex garments, multibagger, palred tech, Pump and dump, RS Software

Pump and dump is a form of stock fraud that involves artificially inflating the price (PUMP) of an owned stock through false and misleading positive statements, in order to sell the cheaply purchased stock at a higher price. Once the operators of the scheme sell their overvalued shares (DUMP), the price falls and investors lose […]

Markets can remain irrational longer than you can remain solvent.

Posted Leave a commentPosted in irrational, market crash, multibagger, profit booking, trim back

Benjamin Graham, the father of value investing, divided investors into two types in his book The Intelligent Investor – defensive and enterprising. The defensive investor, wants to avoid “serious mistakesor losses” and seeks “freedom from effort, annoyance and the need for making frequent decisions.” The enterprising investor, as per Graham, is willing “to devote time […]

The great indian value investment: multibagger story: Patience and conviction

Posted 4 CommentsPosted in conviction, multibagger, patience, wipro

Mohammed Anwar Ahmed, 60, resides in the sleepy town of Amalner in district Jalgaon, Maharashtra. His father owned a large farmland in the 1970’s. The father’s untimely death in 1980 left the four sons to lead different paths in their lives. They sold the land and divided the proceeds of Rs.80,000 equally among themselves. Mohammed, the youngest of […]