I have done series of random posts on this topic; it always questions the investor’s behavioral aspect. The term “Greed” may not be a better word for the society but as Gordon Gekko said “The point is, ladies and gentleman, that greed, for lack of a better word, is good.
Sharing you a classic example of an institutional investor – NatWest markets bought shares of HDFC Bank in 1995 for Rs.40 crores.
Few years down the line, in 1999, they sold the same for Rs.400 crores. Money multiplied by 10 times in 5 years
NatWest might have patted themselves on their back for such a wise decision. It’s a rarity to make 10X money in 5 years. Continue reading “Greed and the Market”
Retail investors are helping markets more by staying out than by investing in equities. So from a purely selfish point of view, we (current equity market participants) do not mind if you stay away from equities. Park your money in low-interest bearing savings accounts and this will help banks raise cheap funds.
Then, while you earn taxable 9% per year in fixed deposits and 4% in savings accounts, we will continue to buy HDFC Bank, IndusInd Bank, Yes Bank and the like, which are up 3.5 times, 11 times and 5.9 times respectively since December 2008.
Also, remember to pay all your EMI installments on time so that retail loans made by private banks do not get into trouble and we can continue do well owing their stocks. Continue reading “Why you should be in equities ? Some logical arguments”
Well I don’t disclose my view or portfolio, as there is lot of pundits in the stock market who has their own take.
Yesterday some body was keen to invest in the markets and wanted to know about my portfolio.
I have given him the list of Stocks that should perform during 2014 based on my small analysis & my own justification it may differ for others and I will not talk about numbers too 🙂
- Aurobindo Pharmaceuticals: I am expecting that this company to achieve its revenue and see a Compounded annual growth rate of 15%. It will do well in US.
- TCS: The Company’s well-balanced portfolio across services and geographies, and strong leadership. Deal wins, hiring trends and management demand commentary remain encouraging. Continue reading “TOP 10 Stocks for 2014”