원문 보기
Now, if you love risk like me, jump in. You'll either sink or soar. This is what happens with a new company. Brother, once it crashes, the market crashes. The market crashes. The market crashes. When such market crashes happen, many people get scared. But the best investors pray that the market crashes just once during their lifetime.
And because of that, the prices we get. I pray that 2008 happens once again in my lifetime. Okay, so many master investors have earned crores of rupees in this market crash. Today, in this short course, we will study all the past market crashes to see which strategies these master investors used to earn these crores of rupees.
Then we will look for patterns in them to decide which stocks we should buy if the market crashes again. Now, if we want to understand the strategies of master investors, we need to be clear on two terms: long position and short position. Long position. Normally, everyone knows that a company's shares are trading at a low price.
Take it and sell it in the future at a higher price, that is, if you bought shares worth ₹55,000 today and tomorrow the price of this company's shares increases to ₹1,000,000, then your profit in this particular case will be ₹ 10,000 - ₹5,000 is equal to ₹. The second term we need to understand is short position.
People short any stock when they feel that the market is going to fall, that is, this is the exact opposite of the previous strategy, that is, sell the shares today at a higher price and buy them tomorrow at a lower price, that is, first you sell shares worth ₹1,000,000 from the market, and then in the future, when the share price falls to ₹5,000,000, your profit of ₹5,000,000 is lost and he had to replace it with a glass eye.
After studying finance, he also studied medicine from the Wernher Bilt University School of Medicine, but every evening he used to learn investing. He had built a reputation as an investor, claiming to follow the philosophy of "The Intelligent Investor" and assess a company's actual value before making any decisions.
In 2000, he borrowed money from friends and family to open a hedge fund called Sion Capital. In the first year, he made significant profits for his investors. While the US S&P 500 fund increased by 11%, his hedge fund increased by 55%. During the Internet bubble, he observed that many Internet companies were fundamentally in deep losses, yet their valuations were sky-high.
He knew that the company's value would fall, so he shorted these companies and made significant profits for his investors. Even when the S&P 500 index fund plunged by 22.1%, his hedge fund remained in positive territory at 16%. However, he amassed ₹ 100 crore for himself, and all this wealth accrued when he He shorted all the real estate in America.
Actually, in 2005, he saw a pattern that big banks were giving home loans to common people and that too at low interest rates, knowing that they might not be able to pay back the home loan amount. All the banks felt that even if people do not pay the loan, they will still increase the price of their loan by charging them interest.
But Michael knew that if many people do not pay the loan amount together, then this market will definitely crash, that is why he shorted it. I hope you can feel this. This short meant that he had bet on the US economy that it will completely crash, and it turned out to be right. This market crashed in 2008 and it was named The Great Recession.
This fact happened not only in the US but all over the world. Lakhs of people lost their jobs. Many people committed suicide, but Mr. Michael Burry earned Rs. 100 crores and made his investors earn Rs. 4900 crores. If you get time, there is a very amazing movie on it, The Big Shot. You can watch it.
Must watch the next study: Rakesh Jhunjhunwala, Harshad Mehta Scam 1992, India's Varun Buffett. Rakesh Jhunjhunwala became interested in investing when he saw his father discussing investments with his friends. Mr. Jhunjhunwala's father never gave him money for investing and refused to let him borrow from anyone.
However, Jhunjhunwala borrowed money from his brother's clients and promised him higher returns than bank deposits. In 1986, he earned his biggest profit when he grew to ₹1.43 in just three months, multiplying his wealth three times. In these three years, Mr. Jhunjhunwala earned ₹20 to 2 lakh. Over the next few years, he invested in several companies, such as Titan, Kail, Paraj Industries, Bindo Pharma, and NCC.
However, Rakesh Jhunjhunwala says he made the most money during the Harshad Mehta scam. How did he tackle the market? I earned at least 30-35 crores during the recession. So the question is, what strategy did he use during this time? When Sucheta De Lal published the Harshad Mehta scam in the Times of India, the stock market crashed.
The value of the Sensex went from 4500 to 1980. When the stock price started falling drastically, at this time Rakesh Jhunjhunwala and Radha Kishan Damani shorted stocks and made a lot of money. By the way, Mr. Damani used this money to demarcate. After this comes Bill Eyman, who made the biggest trade during the Corona period and earned 2.9 billion dollars in just one trade.
I don't know how true this story is, but many people believe that Bill Eyman was such a steadfast investor that he bought insurance for his dying uncle and took the money from that insurance after his death. Okay, so Mr. Bill Eyman was born in New York. His father was the chairman of a real estate financing firm in 1988.
Bill earned a bachelor's degree in social studies from Harvard College. He was deeply impressed by Warren Buffett and did n't want to work in his father's business. He opened his own investment firm, Gotham Partners. He then consistently did one thing: if he felt a company was overvalued, he would short it and publicly criticize it so that investors would sell its shares, causing the company 's stock to fall and he would profit.
For example, when he shorted a company called Herbal Life, his strategy failed, and he suffered a loss of $1 billion. When the coronavirus pandemic struck, he saw that Wuhan, China, was under lockdown. He knew the virus would affect at least 50% of the world's population. He publicly stated that the government should impose a lockdown in the USA.
When this happened, he multiplied his investment 100 times within 30 days. He invested this money in buying shares of well-known companies, such as One. Buy shares of Buffett's company, Barker Hathaway. He tweeted, "This is the opportunity of a lifetime, and we shouldn't miss it." The next case study is that of Jim Simons.
Many years ago, when gold mining was prevalent, people mined it manually. However, in today's world, it's done with the help of computers because gold pieces are so small that humans can't see them. Now, many of us might be thinking that perhaps we're extracting less gold now. The reality is that with the help of quant techniques, we're able to extract more gold.
So, the question is, who is Jim Simons and what did he do? Jim Simons was a former math professor at Harvard who later developed a passion for trading and wanted to use math in trading. Jim Simons ' simple thesis is that if human emotions can be predicted using charts while trading, then computers can better predict these patterns.
Therefore, he created a hedge fund and, within that, a multi-billion fund. He has more than 75 PhDs and even with the help of Nobel Lauritzen, he predicts market crashes, which even normal traders cannot do. This fund has given an annual return of 40%, which is twice the return of Buffett. A book has also been written on him, The Man Who Sold the Market.
Again, he makes money mostly in crashes, but with the help of algorithms. So the most important question is which shares should we buy? So next comes what should we buy. So now the main question is, if the market crashes, which shares should we buy? Look, I am not a financial advisor, so you will have to take the decision yourself.
But if I talk about myself, then I understand that Michael Burry and Bill Eyman tried to time the market, that is, they tried to predict when the market would fall exactly. If we talk about Michael Burry, he predicted that the real estate market would fall in 2007. After this The people who invested in his fund made his life miserable.
But luckily for them, the market actually crashed in 2008, and everyone made a lot of money. If we talk about Billman, he had previously shorted the shares of Herbal Life and publicly insulted the company. Despite this, Herbal Life's stock price did not fall, and he suffered a loss of approximately $60 million.
However, he attempted this again during the pandemic and this time he was successful. If we want to copy Jim Simon's trading skills, then it is foolish. So, as far as I am concerned, I think I will not try to predict when the market will fall or when it will rise. Yes, if it falls due to any reason, then I can do two things.
One, if I have already analyzed a company and found that its price has fallen due to the market crash, then I will buy a lot of its shares. Second, if I have not done any analysis, then at this time I will definitely invest in Nifty 50. In which I do not need to be 100% accurate. Even if I get units at a cheap price, I can hold it for a long term.
Rest of you guys must also share your thoughts so that others can also read it and exercise their brain as to what they can do. Friends, what we can do right now is that we should learn from history. There is a saying that history does not repeat but it rhymes. Exactly the same situation will not come again but we will definitely find some patterns.
Therefore, read many books and do not waste your free time. We have created this application and I genuinely believe that it can help you. If you do not want to take a subscription, then listen to the free summary. There are 180 free book series available in this application and every week we keep adding a free summary to it.
See, when the market actually comes to cash, then decision making becomes very difficult. Therefore, do share this video with your friends or family so that both of you together can use wisdom in those panic times. So that we can take any action and decide whether to invest money at that time or not.
Anyway friends, if you do not want to miss such knowledgeable videos, then after subscribing, do not forget to press the bell button. You can also tell us by commenting on which topic you want the next video to be on. We will meet you again soon. Jai Hind.
Comments 0