Friday, May 04, 2007

School of life

The stock market appears to always be in a hurry. There is always panic and noise on the floor of the market on any given day. Words like “spectacular”, “fabulous”, “unbelievable” etc. are thrown around in the media. New York is the place where it all happens in the Americas and if you are not part of it you are not really an investor.

Yet the oracle from Omaha lives and operates out of the most inconspicuous of cities in the country. He has been at it for over 50 years patiently biding his time. Never an anxious word or a superlative term escapes his lips. Everything is matter of fact and understated. Over the years he has trounced the market and its theories with diligent and patient investing. Results speak for themselves. Berkshire Hathaway is a study in smart and logical investing.

I started out in the world of investing about five years back. The bubble had burst and the market had hit rock bottom. I started off by buying the companies that I had heard of the most. The market returned 120% of my investment within 6 months. Boy did I feel smart. I stormed the arena and began firing in all directions. It didn’t take a year for the gun slingers in the market to shoot me dead.

The market is like life played out in a smaller arena. There is excitement, disappointment, comedy, tragedy, thrills, spills, deceit, betrayal and everything in between. Over the years what the market teaches you is to be patient and diligent about investing. It burns you for any missteps and rewards you for smart planning. It teaches you to regroup from debacles and be mindful of success.

Today is a Friday and the school is closed for the weekend. Though I am hurting from the punishments of years past I think I will be back at school come Monday. There is no place like the market to learn the important lessons of life and make money of the side.

Like the Oracle once said: "It doesn't count to predict the rain. What counts is to build the ark"

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