Every time I write something about equity or equity funds I get some message saying ‘tell us how to pick shares’.

So I thought I should write about what people should expect from blogs. First of all you should know why a person writes a blog. Largely it is meant to attract people and say “Look I am an expert come to me”. So it largely serves as an advertisement for a talking assignment, fund management, training, or professional advice.

So a doctor, lawyer, CA, dentist, dietitian,…use a blog as a place where they write all that they know…but please this is NOT ADVICE.

ADVICE IS when I say the following things to you:

• Look Mr. Client, you have no clue about market timing, do not interfere with the fund managers timing skills
• Look Mr. Client keep the papers ready, do you sip, step up as and when you can..
• Mrs. Client you have too much money in equity, be happy with the weighted average return of 13.4% p.a.
• Mr. Client, you are talking through your hat, I’ve had enough.

If I do not know you – yes I know you read my blog – I have no clue about your risk profile, understanding of equity, How you will behave when the chips are down.

If I know NOTHING ABOUT YOU honestly do you expect me to give you right advice.

LET me tell you about one of my favorite shares. It is a commodity player and I am currently short in that share. Let me explain what it means.

Lets say I have 20000 shares of  A Ltd. and each share sells at Rs. 434 per share. I was happy to sell say 200 shares at 434. Then the price fell to 390. I sold further 1000 at 390. Now the price is back to 399 or 409. I am feeling good, and short further 3000 shares at Rs. 390.

Then the price falls to 288. You ask me ‘is it worth buying’? Frankly I do not know. On second thoughts maybe it was fated that I do not buy the share at low……you know how it is right?