Monday, July 5, 2010

Vision & its importance in invsting for a fortune!

Try to develop the vision to see where the sales & profits of the co. will be in future. I made huge sum of money by buying Hindustan Zinc at Rs. 14 / share in 2003 and the scrip went to a high of Rs, 1000 in 2007. You will see this happening again & again in the equity markets. In 2003, the N.D.A. govt. disinvested in . Sterlite ind. Bought the stake at Rs42/ share. The market price of was Rs.14-18 range. Every one could see that the shares of Hindustan Zinc were selling at a huge discount to the price at which a substantial stake of the co. was sold. I too saw that. And I bought about 5000 share at the price of Rs14. What also helped me in making this decision was that I had worked in Udaipur, Rajasthan. I had visited the plant of Hindustan Zinc . I had seen their mines. This helped in my buying the shares of Hindustan Zinc. That the global zinc prices were at a low was the added kicker. If the prices have been low for sometime of a commodity, then it usually means that the prices have hit a bottom & are headed northwards in future . Why other so called analysts, investors were not buying at this stage? The global economy was just recovering from the bursting of the i.t. bubble. There was fear all around. But an investor who did his home work of fundamental analysis on Hindustan Zinc, should have bought the shares of this co.. This is where the quality of an investor- firmness of character comes in. One has to have faith & conviction on one's investment decisions even though at that time nobody seems to see things that way or worse laugh at or ridicule your investment decisions.