Exclusive Firstpost interview with Monkey who beat Sensex

Over the past few weeks, our Monkey portfolios have caused quite a stir among the investing public because of their sizzling run in the stock markets. For the period since inception on 19 August, Monkey portfolio 1, for instance, pocketed a 3.1% gain against the Sensex’ and Nifty’s gains of 1.5-1.8%.

It even trumped a portfolio of 10 stocks analytically picked by 10 brokerages, which added on just half a percent for the six-week period from 19 August.

Firstpost got an exclusive telephone interview with the manager of Monkey portfolio 1. He couldn’t meet us face-to-face since he was was busy getting ready for a one-week meditation break near the mighty Himalayas, where he plans to meet his spiritual teacher, the Monk(ey) who sold his Ferrari.

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Here are edited excerpts.

Firstpost: Your portfolio has beaten the Sensex for the period between 19 August and 30 September, surprising several experts. What’s the secret of your success?

Monkey 1: Eat more bananas. That’s my main investment philosophy. Bananas are brain food; they keep me calm and centred. Since they are one of the best sources of potassium, which lowers blood pressure, I can stay stress-free even when the indices sink by 700 points.

I am also a value investor. I invest in good businesses, not stocks, so daily market fluctuations don’t bother me. That’s why even though my portfolio lagged the Sensex last week, I will never do irrational things like sell my holdings in panic. As my guru says, “When we are unable to find tranquility within ourselves, it is useless to seek it elsewhere.”

Meditation also forms part of my investment philosophy. I frequently climb tree branches near lakes, swing upside down and stare at calm waters. Eventually, the answer to whatever I am seeking comes to me. I would highly recommend this technique to humans as well. I think they can’t stay still for too long; it’s a problem with the entire species, I think. My advice to human investors: “Don’t just do something - sit there!”

FP: So you would never lose sleep if your portfolio falls?

**M1:**No. That would happen only if I hear banana prices are going up.

FP: Do you read research reports while picking stocks?

M1: No, never! I avoid reading reports; I never believe what the analysts say. They rarely get anything right, in my opinion.

FP: Do you consult astrologers or numerologists while deciding on your portfolio?

M1: Why should I? My name already spells Money - with one ‘k’ thrown in.

FP: So what is your take on the markets?

M1: I think in the long run, the markets have nowhere to go but up. Maybe a little turbulence now and then, but it’s important to see the big picture. India is a growing economy and for companies, the potential to grow is very much there. Even if our policy makers’ decisions occasionally seem bananas, I have faith that things will turn out right eventually.

FP: Finally, what advice would you give to ordinary investors?

M1: Take it easy and try to develop an intuitive feel of the information you get on the markets. Don’t just blindly put your faith in analysts or research reports.

Also, don’t try to predict what the markets will do. Once you’re convinced of the merit of investing in a stock, go ahead and invest. But don’t try to predict what the markets will do. Markets are driven by humans, who are very emotional creatures. They drive themselves nuts by fretting over daily fluctuations. But keeping calm always works better, at least for my species.

Oh, and of course, eat more bananas. Bananas rule.