Last eight months have been eventful . Market has come full circle from extreme pessimism to high level of optimism .
BSE Sensex @ 100000 by 2020 is the new prediction . In these crazy times traditional value investors are pretty scared .
But why be scared if you have invested in good companies one may ask . Well the problem is wonderful companies do stupid things when market is bullish
Management suddenly think they are responsible for increase in stock prices and start awarding themselves exorbitant compensations .
Expensive acquisition , high leverage expansion , crazy financial bets follows which dramatically reduces balance sheet strength.
The end results we all have seen in 2008 crisis . Lot of potential great business have been destroyed or impaired . The reconstructions of impaired companies have taken more than 5 years and lot of them are now just turning corner .
I really hope this journey of Sensex to 100000 does not create exuberance in mind of Indian entreprenuers and they with lessons of 2008 act and manage their business with cautious optimism .
Successful investing is all about being crazy , different and less wrong than others . The ideas and process written here may not suit all risk profiles so please check with your financial "doctor" before adopting .
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