Oct 30, 2011

Money Teaser # 7 Stock Markets

Photo by candlecharts’ photostream

Hi Friends!

It’s been a long time since I stopped blogging…was too busy looking for the fodder…now onwards, I’ll try to spare a few moments to remain in touch with you guys. To start with here is yet another Money Teaser; this riddle is meant especially for those who missed a chance to appear in KBC and are now in a hurry to become a CROREPATI by directly investing in stocks. Here we go:

Q-1: What’s the top-most benefit of day-trading?
Ans: You may win or you may lose but it’s almost sure that
you indirectly help raise / increase the share price of your stock-broking company.


Q-2: What’s the best way to invest in stocks for a layman?
Ans: Just buy on the basis of stock recommendations of broking houses. You can find those recommendation in pink papers, money magazines, business news channels etc.


Q-3: Any other alternatives to make money out of stocks without doing any efforts?
Ans: Buy ET (Economic Times) or BS (Business Standard), paste the paper on the wall, and now select the share by throwing a dart. Repeat as many times as you want to buy the stocks.

Second and more professional approach is to look for portfolios of top equity funds and buy the most common stocks held by them such as ICICI Bank, Reliance, Infosys etc


Q-4: What is the optimum size of an investment portfolio?
Ans: Hold at least 50 to 100 stocks. You can even go beyond 150-200 shares.


Q-5: How to invest & behave like a professional fund manager? Is there any special skill required?
Ans: It’s damn easy! Just see the portfolio’s of top equity funds and look for common holdings across majority of them and select 20-30 stocks out of those which should constitute around 70-80% of your portfolio value. Buy the remaining stocks on the basis of either the dart method or top picks based on stock broking research.

Now you can start boasting of your stock picking skills (also need to learn some technical stock market jargon: bottom’s up or top down stock selection approach, market valuation, p/e discounting ). I can guarantee you that nobody will doubt your ability. Finally, if the portfolio value is up, you can boast about your stock-picking skills and if it comes down just blame it on market forces.


Q-6: What’s the difference between issue of bonus to employees vs issue of bonus to shareholders?
Ans: Unlike shareholders, a company can’t make a fool of employees (they get real bucks to spend).


Q-7: What’s the main difference between investing in real estate / gold vs investing in stocks?
Ans: Unlike real estate / gold investing, you can’t invest black money in stocks.


Q-8: Where will be the Sensex in 2012?
Ans: Sorry, I’ve yet to acquire a sixth sense; you can raise this question to astrologers hired by the business news channels.

I hope you like it!


Also See:

1. Money Teaser # 6: Claiming LTA / LTC
2. MQ Financial Stupidity Awards
3. Coffee with Fisher

8 comments:

  1. Welcome back..but missing the sense of humor that usually prevails.

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  2. Hey,

    Good to have you back!

    cheers,
    mentat

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  3. Hi gr8 to see after long period.Please continue your postings without fail.

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  4. Good to see you back and nice post. Thanks!

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  5. Hi Fisher
    Good to see you back.
    This topic is not of interest to me.

    Have you read 'The Black Swan' by NN Taleb?

    ReplyDelete
  6. Good to see you back. After a hiatus, good start by making fun of ppl who want to invest directly in stocks :)

    ReplyDelete
  7. i am very happy .......why you dont come as frequently as required

    ReplyDelete
  8. Numerous brokers are into penny stock trade for long, yet they are as yet thinking that its extreme to take in substantial income. In spite of the fact that fortunes assumes a major part in securities exchange, mindful demeanor and right choices on time are likewise important to perform better. penny stock alerts

    ReplyDelete

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