The monkey business story is often used as a case study in stock trading and investing. Let me share a localized version of the story.
Once, a wealthy businessman from Thimphu came to a remote village in Pema Gatshel to buy monkeys for Nu.100.
People were thrilled and sold their pet monkeys until none were left in the village.
Then, he increased the price to Nu. 300. People started hunting in forest. But it became more difficult to catch monkeys.
The businessman further increased the price to Nu. 500, which made the villagers happy. They were making good income selling monkeys.
One day, the businessman left for a business event keeping his manager in its charge. He promised to buy all monkeys when he returned, but at a new price of Nu. 800 per monkey!
People were excited. They started climbing trees, cliffs, and setting traps; risking their lives to catch more monkeys.
The manager realized that the forest was running out of monkeys, and it was becoming nearly impossible to catch any.
The manager then offered a deal: villagers could buy the caged monkeys of his boss for Nu. 500 and make profit of Nu. 300 when they sell back.
People were enticed by his business offer. They used all their savings to buy monkeys. Caged monkeys were sold in an hour.
The manager disappeared the next morning.
The businessman never returned. The villagers had no choice other than to release the monkeys back to wild due to noise and expenses.
Is there Monkey Business in Bhutan Stock Market?
The stock market is a giant ecosystem of dreams, greed, temptations of people represented by rise and fall of stock prices.
Monkey business will be everywhere. The stock market of Bhutan can’t be an exception.
In Bhutan, there is no separate agency overseeing exchange of securities, brokers, dealers, and advisors to ensure fair dealings, disclosure of vital market information, and fraud prevention.
More than 50% of our stock market is controlled by HNWIs as reported by ADB. This just means it’s more vulnerable.
We must be cautious when companies announce stock buybacks, splits, or bonuses.
Often, the main intention behind such corporate actions is to manipulate investor sentiment and create a positive perception of the company’s value.
The Pump-and-dump of shit coins is a monkey business in crypto world. The brisk dzee business can be our version of such business.
Therefore, it is crucial to identify monkey business. We shouldn’t wait till the end, like those villagers, to realize our losses.
