Mr. MD goes to this village where there are plenty of coconuts. Mr. MD had full data that this village has an estimate of around 50,000 coconuts. Here the main occupation of the villagers is just farming and they don´t know anything apart from this. Mr. MD tells these villagers that if they bring him 10,000 coconuts, he will pay them Rs.10 per coconut. The villagers are amazed why he paying Rs.10 per coconut when actually he can get them free. Sum of the villagers don´t want to shut their daily job of farming but anyway, more than 70% of the villagers go coconut hunting and by evening they bring him 10,000 coconuts and Mr. MD pays them Rs.10 for each coconut. When these villagers came back with the money, they were teasing others, who had not gone for coconut hunting that see we earned more than what you are and that too in just a day we got so much money. The remaining 30% villagers were feeling jealous and guilty of not doing the same.

After about a week´s time, MR. MD again goes to the same village and this time tells them that if they are able to fetch him 20,000 coconuts than he will pay them Rs.20 per coconut. The entire village was once again exited and around 85% went coconut hunting. This time the villagers took two days to collect the coconut and thereby they lost their two days farming. Anyhow they managed 20,000 coconuts and took Rs.20 per coconut. Now the remaining 15% villagers were again feeling guilty of not jumping on to the opportunity to earn extra money.

Ten days later, again Mr. MD comes to the village and asks for another 10,000 coconuts @ Rs.20 only. But the villagers said him that the stock in the village was fast exhausting and it will be difficult for them to arrange 10,000 coconuts. Mr. MD raised the price to Rs.30 per coconut. The job will difficult but the greed of Rs.30 per coconut was forcing them to go hunting. This time more than 90% of the villagers were rushing to search for coconuts. It took them more than 30 days to collect 10,000 coconuts. They lost their farming for a month but they got Rs.30 per coconut.

After about a month, Mr. MD again comes to the village and this time he comes with his closed friend Mr. DM. Mr. MD tells the villagers that now he needs 50,000 coconuts and he is willing to give them Rs.100 per coconut. He instructs his friend Mr. DM to come next month to co-ordinate the payment @ Rs.100 to the villagers and leaves the village. The entire village knows that hardly 10,000 coconuts are left in the village and they will never be able to collect 50,000 coconuts. The entire village is in sad mood to loose such an opportunity of such big money. A month passes by but they are not able to collect more than 2000 coconuts.

After a month when Mr. DM comes to the village, he sees that only 2000 coconuts have been collected so far and tells the villagers that he has a plan. He will sell the coconuts lying in the godown of MR. MD for Rs.80 to them, so that they can than sell it back to Mr. MD for Rs.100. The happiness is again there in the villagers and they readily agreed to buy the coconuts @ Rs.80. MR. DM sells them the entire chunk of Mr. MD @ Rs.80 to the villagers.

Now 1 year has passed, the villagers are still waiting for Mr. MD to come to their village to buy their coconuts @ Rs.100.

But I hear that Mr. MD these days is buying mangoes from sum other village. Anyone interested in selling mangoes to Mr. MD ????

Think wisely !!!

Jasbir Singh Batra
www.hirastocks.com