1. It is not you alone who makes mistake in stock market and a number of stalwarts also make mistake in stock market and it spares none and to prove that point KR Choksey,Chairman and managing director, Motilal Oswal Securities has stated that in 1992-93,he bought shares of a glass company at Rs 1,600 and thereafter the hell was let loose and thus price crashed like a pack of cards.
2. He further stated that he could get out of the stock only when the said stock was languishing at Rs 60. He said he bought thestock because of herd mentality as in those days outcry system was in vogue, and everyone on the floor used to share information, which was their idea of research and as a net result he liked the idea and bought the3 shares.
3. Now he holds stock with a long-term outlook and holds each stock for at least one year, and then, depending on the market situation, decide what to do with each.
4. The lessons to be drawn from glass fiasco is that one must do the homework well as these days there is no dearth ofinformation. He further suggests that while choosing a stock one could use either the top-down approach or the bottom-up approach and further advises people to avoid following the herd. Last but not least he suggests that one should not buy in an overheated market and advises not to sell when there is panic.
2. He further stated that he could get out of the stock only when the said stock was languishing at Rs 60. He said he bought thestock because of herd mentality as in those days outcry system was in vogue, and everyone on the floor used to share information, which was their idea of research and as a net result he liked the idea and bought the3 shares.
3. Now he holds stock with a long-term outlook and holds each stock for at least one year, and then, depending on the market situation, decide what to do with each.
4. The lessons to be drawn from glass fiasco is that one must do the homework well as these days there is no dearth ofinformation. He further suggests that while choosing a stock one could use either the top-down approach or the bottom-up approach and further advises people to avoid following the herd. Last but not least he suggests that one should not buy in an overheated market and advises not to sell when there is panic.
