for Cybergamer

The education is the best long term investment, even ahead of property. It always pays off. so if you have to chance to become a MBA graduate, just accept it and go ahead. The present crisis may stay for about 2-3 years but will wither away by the time you are freshman from MBA. You wil have few competitors then.

Kalidas, Hong Kong
12-10-2008...

for amarawargaonkar

I already replied you on my blogsite. As i mentioned there, it is the Brokers who make the market. Investors are generally followers. This is why you always here - so and so broker gave me this tip and that. It takes courage to say what you want to say. Just see the earlier comment who pokes a fund at me for having made the prediction of 2400 rally in 7 days - he has read only headline not the contents of the message, so he will go on writing in peculiar English and hurl abuses at me. You also experienced that - so do not worry.

I have selectively started buying. I am also losing very little in some of the scrips but in some i have gained like HPCL, BPCL, even Air Deccan (in two lots I made money, but in one old lot, I am losing a bit), Spicejet - twice I made good money, I also bought more recently. I have not touched blue chips but will buy cash rich companies like ITC, MTNL, Hindustan Level (where I made good money - already sold at profit). I am still losing in IFCI (cost Rs 36 - one lot I bought below 30 sold over Rs 35.85), GV Films etc. but the my invesment is very small, and what I have invested is in the same couner where I had earlier quadrupled. I have bought back Essar Oil (120/132 and 158), Essar shipping (Rs 54/66/72) and RNRL (59/68) GSPL (44/36). I will be stepping up the purchases in another meltdown. Any stock you buy today, will have downside of 20% minimum, so If you can muster this loss, then invest, otherwise make money in your hotel. Yes, I will come to Aurangabad once - and in that case - i will need a hotel to stay in. My father in law many years ago lived in that city for over 4 years. I will be coming to India in early November

Kalidas, Hong Kong
12-10-2008...

for raneshramesh,

500k is too high amount to lose. The properties in India are not going to crash that you can afford to lose this much. I do not know the valuation of your property and whether the apartment is ready for possession or under construction. Normally, I never advise anyone in India to buy the property under construction, because in downturn, they run away. It is better to pay 10% more and buy the ready one - pay him on one side, receive on the other - like COD or Cash against delivery. Always make final payment through the financing bank or Lawyer so that all formalities are complied with.

You could have token money of say Rs 1000 and seek all documents from the builder saying that they may be required by the bank for the purpose of loan. If the market situation reverses or you find that the property is not that worth, you can retrace saying the bank did not approve the loan. The most you lose is Rs 1000

Under the cirumstances, you may apply for a loan and pay the builder against delivery of the flat (if it is ready) or make him to agree to receive part payment of just 20% more and balance only against possession. Tell him these are the terms of the bank you are borrowing from. If he disagreed, ask him to return the amount (official or No.2). If the market is in rising trend, he may refund.

Otherwise, proceed cautiously if the property is under construction and the builder is of high repute.

Kalidas, Hong Kong
10-10-2008...

In testing times, the investment field is reserved only for bravo.
- Never be afraid of uncertain times. Deal with it when it comes
- You are in IT business, where your capital is your own brain which is indestructible. So why worry?
- If you are afraid of losing job or face pay cut, start applying in other stronger companies. Just by applying you are not losing or changing job. You will get real feel of the job market.
- your inveetment approach is correct, 50:40:10 in stock:cash: gold
- Howeever, when you find good stocks have come down a lot and really worthy, forget the ratios and go for the guns. Pick up that stock.
- then you have to have patience, you did whatever you can. Leave it to your fate. Fates does not disappoint you when you have done your part.

Kalidas, Hong Kong
10-10-2008...

there are three kinds of investors Those
- who are afraid to lose money
- who are afraid to make money
- who are afraid to hold the money.

You are in last category. Buy altogether 5 stosks. I will tell you tomorrow the list

Kalidas, Hong Kong
10-10-2008...

for raneshramesh

I have very simple formula for situation like yours.

1. If the stocks you hold are likable, retain the holding
2. If the stocks you hold are not likable, and you are losing 60%, find out the stock in same industry that has also come down by 60% or more, that is liked by you. Sell unlikable stock and Buy the likable stock.
3. if you are incurring 60% (say you bought Stock A at Rs 100 that now trades at Rs 40)do the following exercise:
- Please note that although you lost 60%, the stock has come to Rs 40, then, it has to go up by 150% gain to become break even,
- Normally, if the stock has become 1/3rd, I buy 3 times
- If it has come down to 1/4 th, I would buy 4 times the original position
4. If the stock rebounds after new purchase, do not count average price. If the second lot goes higher quickly, sell 50% of new lot at market prices. If it goes higher, sell remaining lot of 20%

This way you are able to manage the existing stock without enlarging your money.

Kalidas, Hong Kong
10-10-2008...

No one has gold any more. They have already shorted in the past between the price of $260 to 320 and they are regretting it. No more gold will be sold, in fact, the world financial system will in future be based on gold standard after current fiazco,

Kalidas, Hong Kong`
10-10-2008

NOTE: I have posted on my blogsite a latest artiole "Defrosting the Liquidity Freeze" that deals with latest problem. Visit my blogsite http: // anilselarka.wordpress. com (remove extra space)...

Hi Kalidas sir , i have a fundamental question for you related to present crisis . Is money a zero sum game ? Say we take some property , sell it useless fellow at high rate [ transaction 1 ] , then sell that loan as papers [ transaction 2 ] and so on till transacion n . If we look at all these transactions in total and look at the money changing hands then i agree that we have bigger turnover than we have currency at hand . But if we look at the system as whole , are we just exchanging the same money again and again and money is still there . if someone has lost money then someone has to get it ....rt ? now if we talk of reversing all the transaction at one go then its we will be short on cash and if we just cross settle all these transaction then except the last person holding the cash eveyone else might be in loss.But the money is still there . After all they did not being any new thing for trading in money [like co2 emisson - where a completely new commodity added in trade needs more money to be printed ] If all this is true howcome US/world is facing liquidity problem ? could you pls explain for a layman like me . ...

Like the earlier DUMB Poet Kalidas had been cutting the Branch behind where he was sitting.... so he cud fall 2400 feet along with the Branch... downside towards the Earth.... Well in time after nodding his head up and down and may be sideways too.... in the company of PUNDITS Kalidas wud sure become wiser..... ...

Dear Kalidasji, I had lost 1.5lakhs in the january fall. I sold of all my portfolio in panic became an ardent follower of your thoughts and stayed out of market. I saw my portfolio i have saved nearly 1 lakh rupees by taking profits in mutual funds, converting my ulips to safer debt portion buying gold etc. Thank you sir your advice has been the greatest. I echo your views whenever i go to my religare branch at aurangabad where i have my account. All of them now hear me with utmost attention. My views are taken as coming from some one who knows the market. Earlier these guys would fight with me, hurl abuses and make fun of me see how the situation has changed. It is all because of you. Sir i own an hotel at aurangabad if by chance you visit nearby place do come and grace our hotel with your presence. I would send you all the details to you by email. Kindly send me your email id. I will send my email id to you through the comments section of your LATEST blog (the one with warren buffets drawing). Regards. Amarawargaonkar...

Kalidas: It seems bear sterns refused to take part in the Long term capital bailout.. so it was the odd mann out.. and it got a fitting reply when it was the weakest.. also the federal reserve is not owned by the united states govt but by the banks.. so there is a vicious circle out here.. =happy investing...

Dear Sir, In the previous message you had quoted "Initially, when the stocks go up, the gold will come down and US$ may go up " But, Sir don`t you think that the current crisis is due to the lack of money in the system ? Don`t you think that the current rally in gold is also speculative ? Jab Insaan Ke paas paisa nahi hota, to kya woh sona lene nikelega kya ? Whats your call sir ? Your reply will be highly appreciated .. Thanks in Advance Regards, Richie Mumbai...

Hi Sir I have been following your suggestions and really appreciate your selfless service to fellow boarders. This is out of the way and I want a suggestion from you...I am a S/w engineer and have an exceptional interest in finance...and In fact i am almost prepared for Gmat. Do you think that I should go for MBA at this point of time?..(especially taking finance as a major later on) Please guide.. Ramandeep Singh ramandeep.arora@ in. com ...

Hi Kalidas I am getting a feeling that you underestimate your popularity :-) There are atleast 20 silent admirers of you for every one admirer who post in MMB...