Tweet Buster: Valuation lessons, tips for volatile market & Kedia’s wisdom
NEW DELHI: It was an action-packed week for the domestic stock market with RBI money policy, Opec meeting and fresh worries around possible escalation in trade tensions.
The coming week promises to be equally exciting with the state elections outcome lined up for December 11.
So, the big question is: how would one navigate the pre-election result volatility? Independent market expert Sandip Sabharwal has a solution that might help. His mantra is simple – Don’t trade!
The perfect way The best way to Trade the Election day volatility . . . . . . . . . . . . Don’t trade
— sandip sabharwal (@sandipsabharwal) 1544243594000
However, Shyam Sekhar of iThought and market veteran Basant Maheshwari do not seem to agree with Sabharwal, as these tweets would suggest.
More the discussion about an impending event lesser the impact once the event actually happens. Just too many peopl… https://t.co/5FUHZJRGgG
— Basant Maheshwari (@BMTheEquityDesk) 1544238818000
Will Voter chemistry trump arithmetic in Telangana? Will Voter anger bridge a massive vote share gap in MP? How w… https://t.co/yGRITlqAPf
— Shyam Sekhar (@shyamsek) 1544112561000
Sabharwal took to twitter to post his view on this week’s monetary policy. He didn’t approve of the RBI decision and called the MPC statement “ridiculous”.
#MPC and @RBI deliver another ridiculous statement. However they are in a bind of their own. Shifted to Calibrated… https://t.co/SJn7SSdUdE
— sandip sabharwal (@sandipsabharwal) 1544000830000
Indian 10 yr bond yields have moved from 8.2% to 7.44% from the day the #MPC @RBI moved to a “Calibrated Tightening… https://t.co/88wgqF8JVF
— sandip sabharwal (@sandipsabharwal) 1544009771000
Indian #CPI inflation is very very low. #RBI and #MPC has misread inflation dynamics completely and tightened both… https://t.co/iUYaZdNiDc
— sandip sabharwal (@sandipsabharwal) 1543993947000
When food prices are high, @RBI #MPC say; we need to hike rates to prevent second round effects on inflation. When… https://t.co/MXiIEi2MVY
— sandip sabharwal (@sandipsabharwal) 1544019671000
Meanwhile, wealth creation remains challenging in a tough market environment. Safir Anand and Sabharwal shared some interesting insights on valuation and how to figure out if you have made the right investments.
Anand says don’t measure a stock by where it has reached or where it is currently at. Sabharwal thinks value should be measured in relation to growth prospects.
In my view- you don’t measure a stock price from where it had reached/currently is. You measure an ideology fm wher… https://t.co/8A4jXUlHcA
— Safir (@safiranand) 1543984428000
India’s largest “Value” MF scheme continues to have Sun Pharma at a 10% allocation as its top holding. One of the w… https://t.co/zUyyPW0fIH
— sandip sabharwal (@sandipsabharwal) 1544010795000
And PEs often do not tell the story. At least that’s what Motilal Oswal’s wealth report, authored by the huge experienced hands of Raamdeo Agrawal, says:
Interesting point in Wealth report by Motilal Oswal on return on equity on balance sheet vs roe of business and why… https://t.co/9Ue7DbqRNQ
— Safir (@safiranand) 1544248827000
Anand is another tweet made this observation that one size doesn’t fit all. He says making mistakes and learning from them is key to good investment.
The learning I deduce for myself from this is: You make a mistake and you learn. You can’t have an investment frame… https://t.co/VbYZxjjOIn
— Safir (@safiranand) 1544064295000
He also says how prudent it is to look at stocks individually than the market as a whole, as there are stocks that perform even in a bear market and then there are those which can make you lose money even in a bull market.
There will be bull markets in which you will lose money buying stocks and there will be bear markets in which you w… https://t.co/yCLTvxnkD9
— Safir (@safiranand) 1543985820000
Sekhar of iThought had a tip to share on value investing. According to him, it is important to reinvent to keep doing well in the market.
Investors keep returning to an experimental phase, especially after doing well in mkts. They need to reinvent them… https://t.co/vE5kdjD2z3
— Shyam Sekhar (@shyamsek) 1543822658000
And to top of this week’s buzz in Twitter, this is what Vijay Kedia had to say about what lies ahead!
Old problems (oil, Currency, Trade war) etc are getting solved. Every problem has a solution. Now Let us be prepar… https://t.co/ginNAClriH
— Vijay Kedia (@VijayKedia1) 1543905286000