Reap rewards as a contrarian investor

Though he was originally inspired by world-renowned investor Warren Buffett, known as a champion of the stock-picking method called value investing (VI), who famously said “Be fearful when others are greedy and greedy when others are fearful”, Pichai doesn’t think VI is the best way for the average investor to profit from the stock market.

This, he says, is because “98 per cent |of investors” are not mentally strong enough to resist the stock market’s up-and-down cycles and thus not able to reap the full |benefit of the VI theory, which has been |mastered by exceptional investors like |Buffet or Dr Niwes Hemvachiravarakorn in Thailand.

“The main problem is that investors are not really using the VI principle or they use it in a wrong way, or they think they are using it but actually are not,” he said.

Pichai believes his “Interest Theory” is, in many cases, a better alternative to VI and can offer higher returns for the average investor who is looking to invest in stocks, gold, or currency markets.

In his latest book, “Getting Rich from Stocks through Applying the Interest System, or VI?”, he suggests that investors go against their impulse to buy stocks when “all forces point to bad” and sell when “all forces point to good”.

Unlike VI, Pichai’s Interest Theory is all about market timing and is designed to anticipate the market trend. Using this principle, Pichai claims he has been able to reap a 50 per cent return from the Thai stock market so far this year.

Published by Think Beyond Books, “Getting Rich from Stocks through Applying Interest System or VI?” is the fourth title Pichai has written. His previous book, “Get Rich Through Real Estate Without Using Money” was translated into English and hit the bookshelves in the United Kingdom and India this year.

Pichai says he is keeping his stock portfolio unchanged at the moment since there is currently a mixture of “good and bad forces” in the market.