Education,Patience & Conviction

As a young man making my way through Uni I was fortunate enough to meet an elderly Indian fellow who I shall call Arpu. Arpu worked for one of the largest construction companies in the world as its chief accountant.

Many,many months before the 87 stock market crash he came in to the office where my boss and a number of others were working and said "If anyone has any stock in any company sell and sell now!" When my boss questioned him, and asked how he would know this his response was simple " I am paid a lot of money to know!" well in the months ahead we all know what happened.

As the years pasts I came to know Arpu better, many others who knew him better than I would comment that his personal wealth through dealing with stocks had made him wealthy beyond My understanding of the word.

One day I came in early to work 4.00am and there was Arpu. We got to talking a bit and I asked him as a young man would "what was the secret?" No secret! he replied, just 3 certain rules that you MUST NOT DEVIATE FROM.

1. Education=What he meant was learn everything you can about the company you want to buy,leave nothing or as little as possible to chance.

2. Patience = Once research is done wait, understand YOUR time frame, Do not be distracted by outside influences that have nothing to do with the Company.

3. Conviction= This was the hardest he said! If you have mastered the first 2 this one is easy . But unfortunetly he said that very, very few people truly master this and that is why the greater majority of individuals lose money on the market. Believe that once you have done the work you and you alone know more about this company than anyone else. This may not be the reality but it is the belief that you do that will get you through.

So what is the point of this post?

No one, and I mean no one knows were this company is heading. It is true that we guess, we can crunch numbers and speculate,but the reality is that no one knows. I can only apply the rules of "Arpu" a man who followed them and became very wealthy in doing so.

Have a great day all