WHY YOU SHOULD NOT FOLLOW THE SUCCESSFUL INVESTORS BLINDLY

Ram has many followers who follow him blindly and so has Krishna. People follow them for
their ideologies and their way of leading their lives by an example. People follow them for their
noble deeds, their elimination of evils and bringing back the peace to their state and for their
people. Now let me ask you something!

“Have you ever seen any Ram follower actually going to the forest, away from family for 14 years? ”

The answer will be NO and that’s true also. People in their daily life follow someone, believe
someone because of their ideologies and the teachings they gave but it’s very sad to say that
when it comes to their trading life, what they do is merely copy someone. They not only follow
them but copy them.

Some names like Rakesh Jhunjhunwala, Radhakishan Damani are widely celebrated and
applauded for their investment strategies. They have blind followers who even copy the stocks
where they are investing. This is a failed practice. Never follow the Stocks where they are
investing, instead learn from how they choose a particular stock to invest. If you just blindly
copy them, it may cost you a big money.

Radhakishan Dhamani, in his early career days, lost a lot of money in short sale strategy, Those
who copied him also lost and gave up the market because they didn’t have big capital like him
but those who learned from him that how he chose this stock to invest, survived. They learned
and used it and are still using to make money.

So, even if you copy, your eyes should be open. Though the people whom I have named here
from stock market are like Lord for some but they need to remember that even God’s do
mistakes and they are no exception. This is share market and no one, I repeat no one has the
key to the guaranteed success in this market. I also follow Mr. Jhunjhunwala and few other
investors but to analyze why they are interested in a particular stock and then if I find that it’s a
good selection, I go with it else I reject it.

No one understands the worth of your hard earned money than you. So, don’t copy today so that
you can blame him tomorrow for your loss. If you want to gain some, you have got to lose some,
here that thing is your time that you need to lose on analyzing stocks, their fundamentals, and
other aspects.

You don’t have any backup plans if your stock falls down but these Lords have diversified
investments in their portfolio, So if they loose 5% at some place, they gain 9% on another and
this way they make up the equilibrium but what about investors like us. What if we copied his
stock and it was the one to get 5% loss. What are we left with now?

If you want to learn something from them then learn how patient they have been throughout
their journey in share market. How much they trusted in the stocks they bought. How Mr.
Dhamani didn’t give up even when he was losing money continuously at one time. How far
sighted these gems of Indian Stock Market have been. And one last thing that we always need
to remember that if this market has given us some real gems like the one mentioned in this blog
then this very market has also taken from us many other investors like Devendra Kulkarni,
Ranbeer Mehta, Sureshbhai, Ranjan Day etc. You haven’t heard these names because they
could not make it big. Their choice of stock was wrong and so they are still strangers to us.

So, when you are coming in the market come with the knowledge of both things, what right did
people like Mr. Jhunjhunwala and Mr. Dhamani did and what wrong did people Mr. Das and Mr.
Mehta did. And then always remember, ALWAYS LEARN FROM SOMEONE THAN COPYING.

 

Author-Abhishek Rathore



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