A Tale of Selling Umbrella

This is a translated post from my Mandarin post, 卖伞的启发故事 . So, if you had read it in Mandarin, then you can disregard this post. All the contents and pictures are exactly the same as my Mandarin post.

Nowadays, the weather is blazing hot, so let me tell you a story, "A Tale of Selling Umbrella"

There was once a businessman who was selling umbrellas. He bought a lot of umbrella with his money and planned to set up a stall to sell all of the umbrellas. After he bought the umbrellas, of course, he needed to conduct homework, such as conduct market survey and study weather forecast. Although the weather forecast is just reporting the forecasted weather ahead, he also learnt necessary knowledge, the direction of wind, the density of the cloud, the location of the busiest street, etc. He always heard a lot of speculations about the rain would be falling on which day. But normally, he would filter those assumptions by analyzing the possibilities. He was not easily influenced and affected by speculations. He clearly understood that, he is responsible of making his own judgement.

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He was also a dedicated and patient guy. Although he was repeating the same routine everyday, over and over again, he was never bored or tired. The world is sometimes cruel, he faced a lot of obstacles, for example, he thought that it would rain on that day, but ended up there was no rain. Sometimes his assumptions were wrong. Despite feeling sad, but he was full of hope and never give up. He understood that if the weather continued to be hot and dry, people will not bring an umbrella with them as they expect no rain. This would turn out to be a good opportunity for him.

One day, his prayer was answered. The day had come. His effort and the analysis of his homework finally paid off. He study the weather, knowing that the strong gust would bring the dense clouds to a specific place. So he set up his stalls waiting for the rain to fall so he could sell all his umbrellas. Just when he finished setting up his stall, he looked around. There are a lot of other competitors. This was completely out of his mind. He never considered about competitors. In a short while, it started raining. When he was attracting the customers with low price, his competitors would attract them by giving lower price, much more cheaper than his. In the end, he failed to sell an umbrella.

Soon, the rain was drizzling and stopped. The businessmen straight away bought all the umbrellas from his competitors with a low price. His competitors were thinking, "The rain had stopped and now he is buying all the umbrellas from me? Why? Let's forget about it, i want to go home and have a rest. Today i am so lucky." After selling their umbrellas to him, they went home with a grin on their faces.

Actually the businessman was trying to monopoly the whole market. He used a low price to buy all the umbrellas from his competitors. Now it was only him, selling umbrellas in that area. According to his analysis, there would be another rain coming soon. Although he knew that his analysis might went wrong, but he trusted his analysis and waited for the rain patiently there.

After a while, his golden opportunity came. It really rained cats and dogs. Now in that area, he was the only one who was selling umbrellas. Everyone rushed to him for umbrellas. He sold the umbrellas with a higher price. Even though the passer-bys complaint the expensive prices, he argued back, saying that the medical fee would be more expensive than the umbrella. In a short while, he managed to sell all his umbrellas. He managed to cover back his capital and earn a lot of money. He used the theory buy low sell high to earn his profit.

Okay, i finish my story.

We should take the businessman's attitude as our learning example. If we focus at the bolded phrases from the story, maybe you can grab some important points. Let's put our thoughts in our investment world. Well, different people might have different views, you are always welcomed to share with me your views on the story by sending me an email, gainvestor10sai@gmail.com or you can like and comment on my facebook page, Gainvestor10sai. Let's share our thoughts and opinions, first of all, hear me out.

Conduct homework - Perform a thorough study before we start to invest

Learn necessary knowledge - Knowledge is forever, nobody can take it away from you

Direction of wind - The current theme of investment
Analyzing the possibilities - Responsible for our own investment decisions and judgements
Speculations - Do not follow the herd instinct, conduct own study

Dedicated and patient - These attitude is a MUST for successful investor

Obstacles - Failure is a part of our life for success

Never give up - Never give up on the things you like or you are passionate in

Opportunity - When chances came, just grab it, dont let it go~

Competitors - In investing, we try to find a counter or industry with less competitors

Monopoly the whole market - Owning a whole world's business will be very very good

Trusted his analysis - Must always update our own analysis and read more financial news

Buy low sell high - The most basic rule for investors to make profit

Hope you can share with me your passion in investing and your views our Malaysia market.

If you are interested to learn more on investing knowledge, give yourself a chance, give me a chance.

Thank you.

Let's Ride the Wind and Gainvest

Gainvestor 10sai

2 April 2016
3.55pm

http://gainvestor10sai.blogspot.my/2016/04/a-tale-of-selling-umbrella.html