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Friday, April 2, 2010

A LITTLE STORY ON MARKETS (On Request)

There was a small village, everyone there were living happily, one day someone from the big city came with his assistant, he announced that - "I will give Rs. 10 each for every monkey you catch and bring it to me", now the villagers started catching monkeys, soon villagers found a new job. They caught monkeys and sold to that stranger & made good money, after a short while villagers lost their interest. The stranger again announced that - "I will give you Rs. 15 each for every monkey", more monkeys came in, after a while the price of monkey went up to Rs. 60 !!! Suddenly one day the stranger was out of the village & his assistant said - "Look this guy does not pays me much, I want to sell all his monkeys at Rs. 50 each so when he comes back you can sell it back to him for Rs. 70" - the villagers agreed -The assistant sold all the monkeys to the villagers for Rs. 50 and went out of the village. Villagers were now left with their monkeys & still waiting........for the Stranger and his assistant to come... but none of this two came back & left villagers with their monkeys worth nothing...while that strangers made money out of nothing....

THE MORALE OF THE STORY - 
The villagers are we small Investors , our stocks are the monkeys and FII’s (Foreign Institutional Investors) are those strangers !!!
Do learn the lesson from this game.. and Invest safely, invest in good business and for long term... 


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18 comments :

  1. Well Said... Bhavikk...Ppls. pls. think n invest ur money
    -Amit Modi

    ReplyDelete
  2. THNKS AMIT.....THANKS FOR UR KIND APPRECIATION..DO KEEP ON WRITING DOWN UR VALUABLE COMMENTS, AND KEEP ON READING MY BLOG

    ReplyDelete
  3. I could not find a better and simple story to illustrate.

    ReplyDelete
  4. Yes. It is right, but up to certain extent. FII Money also necessary to industrial growth. FII drive the growth.

    ReplyDelete
  5. Mr,Shah this trend shall remain till there is larger retail participation in our market. for this we need larger investor awareness

    ReplyDelete
  6. a nice story and it had a reality. but it one way scares genuine investors. you should also bring a clear guidance for them and educate for their awareness

    ReplyDelete
  7. HI READER,
    You said that one scares by reading so...And thats the reason why this blog is made..It gives guidance & also educate investors on the market,blog is only for Long term Investors.
    I would suggest you to go through the previous posts of the blog and clear your doubts...

    ReplyDelete
  8. Mr. Shah,The small investors and FIIs are very well represented by the villagers and strangers in your story . We are actually left with the monkeys whose worth plummets .
    This situation will prevail until the size of local participation exceeds that of FIIs.

    ReplyDelete
  9. FII's likes to play games...we welcomed them when we were in crisis during 1992-93.. YES it was necessary but now these people started playing vicious game on us. Time has come that we should have our own Sovereign Fund we have about $ 280 billion of FOREX RESERVE & can setup about $10 billion as Sovereign Fund, at the times like these when FII's sells thousands of crores of stocks, we can buy from them making our markets stable..
    WHEN THE WORLD IS GOING AROUND 0-1% WE ARE RUNNING AT 7%, IF AT ALL RECESSION HITS USA & EUROPE WE WILL BE RUNNING AT SAY BY 5%-6% BUT WE WILL BE RUNNING WHEREAS THESE COUNTRIES WILL BE LACKING BEHIND....

    ReplyDelete
  10. good starting lesson for all beginners....

    ReplyDelete
  11. I am absolutely ignorant and least interested in the "tricks of trade". But the way you have explained is so simple and interesting!!

    ReplyDelete
  12. hahaha I ve heard abt this story before itself. very nice narration Bavik :)

    My Uncle Nagappan Valliappan was the director or Madras Stock Exchange.

    and my Brother, My hubby Lakshmanan, and my grandpas Valliappa Chettiar, and Arunachalam Chettiar all are experts in share trading.

    so many relatives in chennai has stocks offices ...an some has franchise with Karvi, Sharakhan, etc.. :)

    i know something abt share trading but not interested..My mom Muthu ( 70 yrs old ) doing share business thro ph calls from karaikudi ( chettinad region ) :)

    ReplyDelete
  13. Lesson learnt!
    Thanks for sharing :)

    ReplyDelete

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