The Pukh Phenomenon

By October 17, 2016 Newsletter No Comments

This weekend I went to San Diego Zoo.

Map of San Diego zoo shown below:

pukh pukh The Pukh Phenomenon San Diego Zoo

In the map above on the right hand side you will see Elephant Odyssey and Northern Frontier.

When we enter the Northern Frontier the first animal on display are bunch of donkeys and horses. Then we see camels and then African Elephants and Asians Elephants. At the end are lions and tigers.

One African-American couple was standing next to me admiring these animals. The wife told her husband pointing towards one donkey “there you are full-blown jack-ass”. The husband immediately replied pointing towards one black horse “oh that black stallion”.

So I started wondering that here we are in the zoo watching donkeys, horses and camels. Back home these are so common. They are on the road doing hard work.

For example donkeys are used to haul heavy stuff such as cement, blocks and iron etc.

One time I saw one cart full of construction materials and these were being hauled by one donkey. The cart was so full that if the guy had put one more straw the donkey would not have moved an inch.

There was another donkey besides the big one. This was baby donkey. This baby donkey was just tied up to the big donkey and was not carrying any load.

The guy had a whip in his hand and he was whipping the baby donkey and not the big donkey.

So I asked my friend “why the guy is whipping the small donkey and why baby donkey is tied up to big donkey”.

My friend replied that baby donkey is just a “Pukh”.

My friend explained that the baby donkey is there as a motivation for big donkey. When the guy whip the baby donkey, he runs. Baby donkey has no load. But when big donkey sees baby donkey running fast, then he starts running fast despite all the load he has. The big donkey does not realize that baby donkey does not have any load.

The same phenomenon can be applied to some stocks. One stock in the industry group starts to run because this stock has good sales or earnings etc. The other stocks in the same group starts running despite having weaker fundamentals. We need to understand which stock to buy and which one to ignore in the same industry. For example LUV and AAL are stronger than other airlines stocks but others were moving too.

And that is what I called “The Pukh” phenomenon.

We also say “Kiya pukh laga rakhi hai” meaning “What nonsense you are talking about, it does not make sense”.

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