Individual earns more than Institonal trader

 Warren Buffet said once that if today he was a retail investor if he was not a very big investor.If he was a little Retail investor then his returns should be doubled.

He is earning less because he has become an institutional investor.Why did he say that ?, Now if he has told it then there must be something.And can you and I, we Retail investors

also Mutual Funds,PMS,Institutional Investor and all of them can we really earn more returns ?

Can we earn more than AMCs,PMS, or Institutional Investors? :

  

   Find out how can you earn more returns than big Mutual funds.Does it sound a little weird ? Because we have always in our minds that if someone is an Institutional 

investor take Mutual Fund's example they have many advantages.What advantages ?, Directly with them that company in which they will invest the CEO of that company talks to them.

Calls them to the factory shows them their plant.So, those Mutual Funds have more knowledge.They have access to management and they can clear their doubts one to one.It's a very big 

advantage.Second,they have a good research team with lakhs of salary have people from IIM.They have a very good research desk and softwares.So,after all of these things a small and a

normal investor how can they defeat them, my friend?. So now I'm going to tell you how in comparison to all of these advantages big investors like these have more disadvantages.And as a retail investors 

you really can sefeat them.

1.Performance Pressure: When the entire world is scrutinizing you so that pressure to work well under that pressure is very difficult.Think that there is your portfolio, no one knows what you are earning in it.

You can peacefully make a loss in it, make profit in it.100 people to you teasing you, irritating you,shouting at you no one is going to come.It's your own money who cares if you fully drown or double it.But a

fund manager has always that the sword on their neck that he must every time increase people's money.People however have saved it and give Rs-500,and Rs-1000 as SIP to

them.So in that they have to keep on bringing performance.If they have any mistake then all the Mutual Fund's portfolio are in public.If any of their shares drowns the

number of abuses that fund faces whatever abuses. I am just saying for example ok their funds are good. Motilal Oswal was very bullish at one time on favorite beverages,who makes mango sip they had avery good weightage.

And Motilal's share was doing very good at that time,reputation was very good.One favorite beverage Mango Sip bet went wrong , some problems came to the company and there was a problem with the fund's reputation.AUM

started to decrease on that fund.The fund manager also had to face criticism.This much pressure on an individual will never happen, we can sleep peacefully.Mistakes are made under this pressure.And there is an extended

point to it.Know what??  Just think about the fund manager.For one,pressure like a full stadium,are you missing the ball or hitting a six everyone is watching. Which stock is going what everyone is watching that.So it's 

pressure.In that case,they will not take risks.He will think that Man;I should take Infosys.Tomorrow if it falls,Infosys is lying in more than 1000 Mutual Funds schemes.People will badmouth right ,everyone has to hear it,

not only I will get stuck in it.Why would I take a share which no one has ,which no other Mutual Funds have.If it went wrong then everyone will tell me that You wanted to be a big hero why did you take that share?

no one has taken it.So,I don't want to take such a risk.Second thing,Job my friend , job is dear to everyone.Everyone has to bring home money take care of their family,

what's wrong with it ?. Now if they have taken a risk and the share flipped,then their job is gone.So,it's better not to be a hero,they go safely.See that what Mutual 

fund is A taking,what Mutual fund is B taking,what Mutual fund is C taking,I will take what everyone is taking.I will do an average performance and my job will be safe.

What will I get if others earned more,if my investors earned more.Opposite if I made a loss then everyone will make me a villain amd badmouth me.I don't want to become a hero

I will just keep on giving an average return.So,most of the Mutual funds every time the aim in safety and average returns.This structure becomes like this, this much pressure

and the greed to save their job becomes this big that they can't anything unique or different.Where no one is going there they cannot go.As a Retail investor you are

completely free my friend.You can go wherever you want take some risks with a little money.You can do as you want depending on your risk profile.It's not like,you 

risked all the money,but if you want you can go there where Mutual Funds can't go.

3.Management Access: I have talked about an important advantage it Mutual funds  that they have Management Access,they can talk with the management.Is it a matter of benefit or loss?, Not the benefitis that you can ask them

doubts can be cleared.Sometimes we read about companies,we don't understand should we take that company or not.So,if management access is there, then you can talk with them.

But now my friend thinks the opposite way.They are the company's owners.If you ask the company's owner that,how's this company ?, Then he will definitely tell well.

If you ask any parent,how's your child ?, then parents will always see good things in their children.Just ask their teacher or friends,how they really are ?, Then the 

truth will come out.So,it's the same thing that if I ask questions to a companies owner, they are a very good salesman that's why made such a big company which is 

listed in the share market.Then they are a very good salesman.In opposite,they will show me good things and they will convince me,why you must invest your Mutual funds

money in my company.They want to increase their company's share price they want more and more Mutual funds "Invest in my company"so they are selling me their company.

So I was thinking my doubts will be cleared and he is sticking his product to me.Just as salesman do,they are sticking their share at me.So,what's the benefit of this 

kind of Management Access? On the contrary,it will only harm.Do you what will happen ?, Think that HDFC and ICICI Bank for example,HDFC's management didn't give time 

to meet up with me.ICICI has given me time.So,I have already created a biasedness that they are good people.They meet-up,gives answer to my questions.HDFC ones they are rude,

I don't want to invest there.So,all of these biases also come.From it harm happens the most.After that next thing that they have big research desks many intelligent

people with lakhs of IIM package.What's the benefit?, when you have tied their hands.

    Now, if you told Usain Bolt to win a 100 meters but I will tie both of your legs with rope and put them in a sack,so you have to do a sack race.So he will obviously lose,

no matter how good he is.You have tied him up.It happens a lot in Mutual funds.Think there is a large-cap scheme,now SEBI says that it's a large-cap scheme.You have to invest

your money from these 100 stocks.Now no matter how good that Research Analyst is they cannot get out of those 100 shares.They have to invest only in those 100 shares.Then

where will they bring returns from? As an individual investor you don't have this limitation.Let it be a Flexi-cap fund,a Multi-cap fund there are also many restrictions.

Sometimes restrictions come from AMC level.That company's minimum credit rating should be this.Only then we will think of it as investment worthy.Or it can happen that 

this scheme mandates are valued stocks.So don't go with growth if there is growth then don't go with value.Many restrictions come even if those people are smart but

because of the structure this much formality,hierarchy and restrictions come that no one can openly show their talent.Now in cricket if you make someone the 12th man

no matter how good he is,he won't be able to win the match.How many matches can he win by giving out water,he can't win.So many things happen that people are very 

intelligent but they  become the 12th man.And the funds are governed by the rules and policies.Now,I am not saying that it's wrong; Mutual funds are safely oriented.

People invest their savings money.So having this structure even if the returns are a little less but people money the first priority is to keep them safe.So this is not wrong

it must be like this.I am not criticizing Mutual funds.But I am saying that because of these reasons an individual gets the chance to learn  if they learn in-depth

investing.

  

And now last,this is our most unfair advantage.It is always said that only big people get big advantages.The world is not fair in the stock market small investors,Retail

investors has the advantage.And big people are at a disadvantage.They have a loss,we have profit.This is a very good rule do you know what ?, If a Mutual fund invests 

in any stock then it's important to be disclosed in the public.In any company,if someone is of more than 1% of it's shareholder,Then they get disclosed in that company's

financial statements.Meaning any big investor is buying a lot of shares of a company and they have more than 1% of their holding.Then they will come in that company's

results.Now,we can spy on them but they can't spy on us.Because what company do we have 1% of ownership?, If we have a few shares then disclosing is not necessary.

That means,we can see what they are doing.They cannot see what we are doing.Think,if it was a war and in war,we have a third eye and we are seeing all of the enemy activities.

Where they are hiding,running,what they are planning.And the enemy is not knowing anything about us.Then who will win?

Maximum chances are that we will win.It's just like that.In the stock market who are the big investors we are able to spy on them and they can't do it.

  

   As an individual investor that you can feel more confident.So I'm hoping that from this post,the fear that we have ,we cannot defeat big investors,what are we in front of them?

They are operators,many times we think that operators take our money.Many people enjoy saying that operator!operators did that!,they dropped the market! Operators!.So

we always think that "we are just lambs to slaughter."And someone always beats us.So this feeling with this post,I wanted to get rid of that.That they must have some

advantages but we have more advantages than them.And there is no need to fear.