SENSEX-CLOSES AT A ALL TIME HIGH

Today the Sensex closed at a all time high.What does this mean for an average retail investor?-Nothing in my view.Does this give u the impression that we are an in a secular bull market from the lows of June 2006.The answer is a big NO.If u are to look at an portfolio of most of the investors it would show a depreciation from the levels of May 2006.It goes to show that every new upward movement in the market will have its favorites.What does the ordinary investor do? The solution is to simply buy into a company and wait for the company to deliver consistently and the market to recognise the true value of the company.

I am reminded of two stocks in the market which make this grade consistently.They are HDFC and HDFC Bank.Excellent Management,good steady business and participating directly in the India growth Story.Year on Year the company delivers good set of numbers and the enterprise value of both companies keep rising year on year.These sort of companies withstand the downturns in the market much better than any of their competitors.

So invest in a great management,good business and simply wait it out.The returns will happen on its own.

As one of the greatest investors in modern times said

"Investment is one of the most boring exercises that an individual can do".

WISHING YOU ALL A VERY HAPPY DIWALI AND A PROSPEROUS NEW YEAR.