BUY ANOTHER DAY OR ELSE DIE ANOTHER DAY

Modern humans by nature are averse to waiting. Whereas, the hunter gatherer man got his food only by waitin. He would wait for a kill because only then  could he get his meal.  A number of readers query me that since last two months I have hardly posted anything on the blog, whereas the Sensex has made new record highs. Nifty has touched 7900 etc etc.

I can only say one thing, Warren Buffett is also waiting. He has currently around US$50 billion plus cash in Berkshire Hathway but he is sitting. He finds the markets overvalued. If he can wait so can we. He is waiting for a fat pitch, a juicy lose ball to hit a home run, to strike a sixer in cricket parlance.

I also remember his friend and deputy, Charlie Munger, “It takes character to sit there with all that cash and do nothing. I didn’t get to where I am by going after mediocre opportunities.”

Another gem of his…”There are worse situations than drowning in cash and sitting, sitting, sitting. I remember when I wasn’t awash in cash — and I don’t want to go back.”

So, wisdom dictates that you wait for an ambush. Ambushes take whole nights, sometimes many nights before a prey falls into the ambush. Same is applicable to stocks. Mr Market is excited, he is wild and is pricing everything stupidly. So, I will come another day to buy. Wow,  Buy Another Day…Anyday better than Die another Day.

Keep your buy list ready and pounce on those businesses when the tide turns. Sooner or later it will. Even for me at times it becomes difficult to resist the temptation to invest while I sit on cash.

The probability of losing from this stage is high, so better avoid burning your fingers. If your neighbour is becoming richer, it is not making you poorer. Remember this.

A lot of people are asking me what should they do. Switch off the TV, as Nassim Taleib says. Read your favourite novel. Go bungee jumping or just enjoy the Mumbai Monsoons. And live to fight another Day. Hasta La Vista!!!