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Mumbai investor club bets on crowd wisdom

Mumbai investor club bets on crowd wisdom
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First Published: Mon, Feb 26 2007. 11 36 PM IST
Updated: Mon, Feb 26 2007. 11 36 PM IST
Mumbai:  Chetan Parikh is looking for 200 people to become members of a club he has founded. The club doesn’t have a physical presence; it can be found at capitalideasclub.com.
Founded 10 days ago, it has already received 35-40 applications for membership in response to word-of-mouth publicity. Members are screened before admittance but the membership is free.
In many ways, Parikh’s club is representative of a growing interest in the stock markets and in value investing, where investors pick stocks on the basis of some value they see in them. Capitalideasclub.com is, arguably, India’s first value investing club and it promises a unique benefit for its members—share your ideas on value investing and grow rich.
Parikh is a firm believer in value investing. He also runs a portfolio management service, Jeetay Investments, and an investment news portal, capitalideasonline.com that features interviews with chief financial officers, fund managers, and investment analysts.
Investors usually look at the financial statements of companies and research reports, before they make up their mind to invest in them; value investors try and look beyond numbers. “The idea is to build an interactive platform where we don’t just talk about numbers, but gain from the ideas and experiences of other members,” says Parikh.
The genesis of the club goes back to the monthly meetings of Parikh and a few friends from the investment community. All of them soon realized that their ideas were limited by the number of people in the room. Creating an online forum, Parikh thought, would be the solution.
The club, however, could soon acquire an offline extension; it plans to invite experts from various disciplines including science, history, and psychology to be part of an offline forum where they talk about their own areas of expertise. This, Parikh explains, is an idea inspired by Charlie Munger, Warren Buffet’s longtime partner at Berkshire Hathaway, who advocates that several investing insights can come from other disciplines.
Of the applications he has received, Parikh likes 10 ideas, and the individuals who came up with this have been granted membership of the club. Trust a value investor to seek value every time.
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First Published: Mon, Feb 26 2007. 11 36 PM IST
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