Sunday, 7 December 2008

Fearful Investors

In last week I came to realize that there are clever real investors and fake investors. Back in 2002 when I joined 2 other individuals to do a start-up telecom company with just under $1 million fund, we were just coming-out of a small recession. I knew that it was a clever decision as market was dull, prices were low and you could hedge on the talk-time with carriers, full infrastructure -hardware & software with flexibility in payments. We did very well with that venture but as market began to shoot-up I was fearful of roller-coaster ride. Some enjoys it - frankly I don't, love to be on ground and see others feeling dizzy!!! 

This works same for investments, my experience in forex taught me that never catch a bull by tail, always catch by horns. I heard from some investors about their fear about investments and some wants $12 million liquidity for $20 million. It sounds funny, why should one look for a investor if they already have $12 million. Others want 6-8 months to go through the process, this will result in catching tail again. I just feels that the genuine investors ratio in population is just 1: 10 millions to fake investors. As Warren Buffet quotes "Be Fearful When Others Are Greedy And Greedy When Others Are Fearful".  This is the time to be greedy not fearful. 

But there are few good example like the Ahuja who bought properties at very low price from Northern Rock bank in UK, the people who buys houses & cars on cash in 48 hours and many other investors  acting as vultures on all type of industries. But these vultures are buying things for cheap - did they ever think about the quality and the point that they are buying a failure. Same applies to government, they pump money to keep the failing organizations afloat. Did somebody miss the point of "risk" involved any business.

World never learns, well I'm into alternative technologies strategies. Hope somebody reads this and decides not to buy failing industry, rather invest in start-ups for a new start; new process and structure.

- Jeeson augustine 

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