Sunday, January 17, 2010

Stocks and Women

Sorry friends that I am unable to write regularly these days, but will continue to post articles whenever I get time. Some of my recent recommendations that came in August 2009 (http://www.stockanalysisonline.com/2009/08/market-watch-opinion-piece.html)
are doing pretty well and I am reasonably sure others stocks mentioned in that post will also follow suit if you stick with them for another 3-5 years. Parekh Aluminex, Genesys International Corporation and Madras cement from that list are doing pretty good and in fact Genesys has given 175% return from the date of posting. In the recent days, not so much has happened in the market front but whenever something of significance happens (in terms of investment) I will post my views for sure.

I always wondered why women’s participation in stock markets is way lesser when compared to other industries and I think stocks and women, both have too much in common, so it seems Men are supposed to chase them down. This article is written in a lighter vein and I hope whoever reads it enjoys the comparison and have fun. But I assume that this article might require some very good understanding from the reader as well as things are not very explicit and there are endless possibilities to correlate every point to many things.

What are common between them?

Both are “unpredictable”. Too many people are chasing too few items and you never know whether you will come out successful.

Day to day “Fluctuations” are very common even though fluctuation in women does not happen tick by tick as in the case of stocks, but when that happens it could be more than what the stocks experience.

Good ones and Bad ones are there for the taking in both the cases. Your destiny leads you which one you end up picking. Pick the wrong one and you are done!

Men love both. Probably that’s the reason, “Value” increases for both and sometimes it is sudden as well particularly when the “Earnings” go up.

“Hidden Gems” are found in both and you need to do some research to identify. People who are great in spotting them often buy the ones whose “intrinsic value” and “Margin of Safety” is higher.


Some are “Very Expensive” and some are “Less Expensive” in both the cases. Buy the expensive one and more often than not your return is subnormal. But buying the “Less Expensive” one also does not guarantee you the supernormal profit. The answer is it depends, may be on your fate.

Note: I did not post the pictures to show you any symbolic depiction. BELIEVE ME! Now you definitely know why they are so many companies on the street, so do the stocks!
Both are “very risky” and “extremely volatile”. If you do not play your game well, you will end up losing everything. Both have the capability to erase your entire wealth. You will never get back what you have lost, but can be substituted sometimes.

“Board room” fighting’s are very common in both and often times the Chairman is forced to accept the decision of members. Otherwise board room coup is on the cards.

“Splits” are very common in both and 1:1 and 1:2 are more common than 1:5.

“Bonus” issues can happen depending on the timings.

It will be “Heart Breaking” when you lose in both.

You can definitely experience a “Crazy Peak” and “Unnerving Fall” in both the cases. Peak is always followed by a fall and the cycle happens all the time as long as you are dealing with them. Sometimes all these happen with reason and sometimes not.

If you are in search of them, you need to consider on a “Consolidated” basis and not on “Standalone” basis in both the cases. Because there could be some “Hidden Risk” or
“Hidden Value” on a consolidated basis. If it is a "Hidden Risk" then forget about the comeback.

Both have “Maturity” period and you need to wait for it.

Men become attached to both can’t get rid of it even when your life becomes miserable.

What are not so common?

You can have many stocks legally and unfortunately you can’t have many women legally. “Illegal Holdings” are fraught with danger.

Stocks are highly regulated (can be regulated) and traded on the exchange and you don’t want to do the same for Women. If you do that, Ambani’s, ND Tiwari, Mallaya and Tiger Woods will win and you lose! You don’t stand a chance. If you think you can get at least the bad one, there comes Lakshmi Mittal, who has the habit of taking the bad ones and converting them in to great asset.

So many things are very common between them and you might think great investors and stock market kings can master women too and you can’t be more WRONG! Simply impossible to anyone. But the reverse could be true. If you have mastered women, then you might become successful in stocks.

How to handle?

Patience is the key in both the cases. You have to wait for a long time to reap the benefits and when that happens, the society might feel you have achieved something but you might not!

“Long Term Investment” works better in both the cases and they perform better overtime. So some sort of “Fundamental” analysis is very much needed.

“Short Term Investment” is more risky in both the cases and only very few people have mastered and that too not because of their brilliance. Some kind of “Technical Analysis” might help you to gain in a short term and definitely it will be temporary. The performance can’t be repeated.

Stay away from “Day Trading” as it has very serious consequences.
Hope you all enjoyed the fun comparison and if you are a women reader, you are welcome to post the comment like "Stocks and Men". It will be really interesting to see your perspective.
Kumaran Seenivasan.

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This is a blog about stock market investments, investment strategies, and related topics. Any statement made in this blog is merely an expression of concerned authors opinion, and in no case should it be interpreted as an investment advice to buy stocks, sell stocks, or for that matter advice for any other issues be it money related or not. By using this blog you agree to (i) not take any investment decision, or any other important decisions based on any information, opinion, suggestion or experience mentioned or presented in this blog (ii) verify any information mentioned here, independently from your own reliable sources (for e.g. a registered investment advisor) and thereby check for possible inaccuracies. This blog is to create investment wisdom among general population and the authors are not responsible for
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Stock Analysis Online by Kumaran Seenivasan is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 2.5 India License.
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