I will never forget this chart and price even after more than 20 years. I was in my native place it was in Feb 2000. We were at our broker's office. Somone ordered shares worth a few crores on phone at around Rs350 per share. The prices were soaring everday.

1/n

Initially, I thought it must be a day trade. but it was not. also, you look at such trade with amazement. you make your false judgement that the investor must be someone with a great understanding of the business as he has so much money to invest.

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The broker was in awe so was the guy at the terminal. He bought shares worth few lacs for himself. He advised some of his clients to follow. He asked us to do so. I dont know what happened to us, we said no. We won't.

3/n

However, during this quick 10mins, you develop a self-enforced belief that guy must not only b having a great understanding of business but he must also be an amazing investor. It happens when everyone is doing the same thing. The public force is brutal in making perceptions

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The stock went up further during the next few days and made a top around 400. We thought we made a mistake, broker and the guy at the terminal said so too. We did not have much understanding of valuations, governance. Actually, we never heard those things back in 2000.

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But one thing we learnt from the past was not to follow what everyone was doing howsoever tempting it might be.

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The leverage was available in plenty. no pressure to do settlement as the stock was moving up. But there came a sudden jerk. Within a month the stock was half. there was no money. the broker got bankrupt too. Risk mgmt was unheard of when you gain everyday. Lessons r many.

7/n

As soon as u see that easy money is in making, b alert, more cautious. Better to be slow. Avoid any respect quotas. Avoid media/WhatsApp, go alone, take a break, take a deep breath, do meditation, calm down, don't be in a hurry. Book profits and let someone else also earn.

8/n

I witnessed some1 getting bankrupt for 2nd time whom newbies see with respect just because of the size of the orders and their move. Understand here anyone can go bankrupt if they are not disciplined, orderly, esp those who are "डेढ़ शाना" (over smart), as they say in Pune.

9/n

the first one that I saw someone getting bankrupt (biggies and not middle class like us) was in 1993. I will cover that story some other day. It is a very fascinating story of someone moving the entire market and became bankrupt in the next few months. From suit to sleepers

10/n

Btw, Mn $ question: Could you guess stock? It was fm IT sector for sure. I could get price chart means it still trades. A bad hint is: its name is very unusual. I don't know if it has any meaning either. The company has been raided multiple times by different authorities.

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