Shyam Sekhar | Basant Maheshwari | Tweet Buster: Tweet Buster: Shyam Sekhar’s funda of ‘BeerMug’ investing; why momentum stocks always disappoint in the end

On this version of Tweet Buster, we sift via the world of 280 characters to deliver out the very best of
gyaan from market experts that can assist you earn a living in a unstable market.

Managing Cash

DSP Mutual Fund’s Kalpen Parekh stated private finance is extra priceless than markets. “You realise this when private occasions set off excessive bills. What labored for my granny (no capital) & dad and mom (average earnings) was respectable medical health insurance & investments held for many years as they didn’t have time to trace costs every day.”

Take away the froth

PMS fund supervisor Shyam Sekhar stated most high quality trades lastly grow to be ‘BeerMug Investing‘.

Good however costly

Sekhar stated in previous cycles, operators took vulgar firms and made them look good. “Now, they take good firms and make them commerce at vulgar valuations. That’s the distinction.”

PE headache

Dalal Road veteran Basant Maheshwari stated development is the anti-gravity to excessive P/E shares however when the P/E is excessive and the expansion <20% ultimately you’ll fall at 9.8m/sec^2 earlier than making an enormous thud ! “Too many chemical and shopper names qualify for that class.”

Beating inflation

Maheshwari stated the easiest way to play inflation is by shopping for firms which are inflicting it relatively than by shopping for those which are fearing it.

What to not purchase

Market advisor Sandip Sabharwal for many extremely valued shares this outcomes season would possibly create large downsides as a consequence of large enter price strain and inflation.

Sabharwal stated housing finance firm outcomes present important margin stress. “As banks with a significantly better and cheaper deposit franchise compete extra on this market standalone HFCs would possibly see profitability pressures maintain.”

Sabharwal additionally suggested buyers to exit out of “Consumption” themed mutual fund schemes. “Most maintain crazily valued #BAAP shares in very excessive percentages. Most who invested in them will need to have already made big cash.”

You get what you deserve

PMS fund supervisor Porinju Veliyath stated shares that had been defying gravity will likely be again to deserving ranges. “Newbies would possibly be taught it the onerous approach!”

Momentum investing

Deepak Shenoy of Capital Thoughts stated a momentum inventory will at all times disappoint, on the finish. “That is what “the tip” means. However such as you beloved a Gavaskar, a Tendulkar after which a Kohli, it doesn’t suggest you do not care in regards to the recreation as a result of a participant went out.”