Weekend Reading

The Porcupine Story

The story goes that it was a particularly harrowing time in porcupine land. The winter was severe and the porcupines were finding survival difficult. They were freezing to death.

That’s when they held a meeting to decide on a course of action. As they got together to discuss their survival strategy, they discovered that just by being in close proximity with each other they were able to feel warmer and protect each other.

Being closeted together meant that their bodies generated heat which helped keep everybody warm. So they found they could survive the cold by just staying together!

But there was a problem.

As they moved closer, they found each other’s quills to be a bother—they poked and hurt.

Feeling the discomfort, some porcupines decided to avoid the pain from the quill pokes and moved away.

And as they ventured out on their own, the cold got them and they died.

Soon better sense prevailed and the porcupines realized it was better to stay together and survive rather than go out on their own and die.

Getting poked by the quills of porcupines that were close to them seemed like a small price to pay for survival.

This story has a great lesson for investors.

1) Investors afraid of market volatility redeem their investment because volatility seems to hurt them. Only if they could tolerate a little volatility their lives would be much better off in due course but their fear gets the better of them and they hurl themselves into a bigger crisis.

2) Another lesson investors can draw from this story is of leaving their Advisors and practicing self advisory or self medication whatever one may like to call it because the small fee that they have dispense seems to hurt them. They eventually venture out on their own and with no Advisor to manage their irrational and emotional behaviour, they too fall prey to greed and fear and lose their way.

#learningneverstops

Kaustubh Deole

IDIOT BOX

Akbar once put a question to his court that left everyone puzzled.

As they all tried to figure out the answer, Birbal walked and asked what the matter was. And so they told him the question.

‘How many crows are there in the city?’

Birbal immediately smiled, went up to Akbar and announced that the answer to his questions was twenty-one thousand five hundred and twenty-three.

When asked how he knew the answer, Birbal replied, ‘Ask your men to count the number of crows.

If there are more, then the crows’ relatives from outside the city are visiting them.

If there are fewer, then the crows are visiting their relatives outside the city.’

Pleased with the answer, Akbar presented Birbal with a ruby and pearl chain.

This is the kind of stories being dished out of business news channels day in a day out.

For example: take the question “Market kya bolta hai (What’s the market saying)” or

Where will the index be by in 5 years?

And haven’t you heard very intelligent and learned people saying that the index could triple in 5 years.

The use of the word ‘COULD’ is like Birbal’s answer.

Again we hear things like the market will rise provided “MONSOONS” are good, provided “FISCAL” situation improves but there are risks also like outcome of various “ELECTIONS”

Thus the media and experts are always ready with BIRBAL answers and like Birbal’s earned Ruby and Pearls the media earns huge advertising revenue by aggregating fools who sit in front the idiot box.

Kaustubh Deole