In this edition of Tweet Buster, we scan the world of 280 characters to find out how market veterans are reacting to the emerging market dynamics and try to spot money-making ideas, investing strategies and behavioural tips.
Time for bonds now?
Radhika Gupta, MD and CEO, Edelweiss Asset Management, said one should buy equities when prices fall and buy bonds when yields rise.
Buy equities when prices fall.Buy bonds when yields rise.
— Radhika Gupta (@iRadhikaGupta) 1614590550000
Nikhil Kamath, co-founder and CIO of Zerodha and True Beacon, said frothy stock valuations have compelled him to take a counter-trend outlook and hedge 60 per cent of portfolio. “Fund managers usually don’t voice binary outlooks. At the frothy valuations we sit on today, we take a counter-trend outlook and are 60 percent hedged. The trend is up, and no one can time when the trend changes. We would rather miss 50 % of the upside vs. risking principal.”
Fund managers usually don’t voice binary outlooks. At the frothy valuations we sit on today, we take a counter-tren… https://t.co/Pz41mXVLFJ
— Nikhil Kamath (@nikhilkamathcio) 1614916960000
Count the screens
Zerodha CEO Nithin Kamath, who stopped trading after starting the discount brokerage firm, shared how his brother Nikhil Kamath’s trading desk looks like.
I stopped trading when we started Zerodha. Super tough to run a business and trade actively at the same time. Here… https://t.co/ieNeJQtLFA
— Nithin Kamath (@Nithin0dha) 1614917596000
iThought founder Shyam Sekhar advised investors to stick to their lucky mascots. “Some stocks just keep giving you money again & again. They are your lucky mascots. Every cycle, you can go back to them when they are out of favour. Buy them. Hold them. Sell them when cycle peaks. Cycle Repeats.”
Some stocks just keep giving you money again & again. They are your lucky mascots. Every cycle, you can go back t… https://t.co/vF5DSC9XNY
— Shyam Sekhar (@shyamsek) 1614875864000
Stay away from noise
Sekhar said investors should built their positions quietly, hold them patiently and sell carefully. “Never talk about your positions while doing all three. Focus on what you need to do. Noise affects your investing.”
Build your positions quietly.Hold your positions patiently.Sell your positions carefully.Never talk about your p… https://t.co/dZ1im8eaYH
— Shyam Sekhar (@shyamsek) 1614744891000
“If you took a contrarian call and bet on select PSU stocks instead of FMCG, insurance and auto stocks at the market bottom, where would you be today in return terms? Choices matter in delivering superior returns,” Sekhar said.
If you took a #contrarian call and bet on select #PSU stocks instead of #FMCG, #Insurance and #Auto stocks at the m… https://t.co/zvaDs97wCq
— Shyam Sekhar (@shyamsek) 1614572261000
Warning for home loan takers
To all those trying to take a home loan to take advantage of cheap interest rates, independent market expert Sandip Sabharwal has a piece of advice: When repo rate goes from 4 per cent to 5 per cent, rate will go to 7.7 per cent.
Rate War in home loans segment with most banks at 6.7% nowGood for consumers, however whoever is taking a loan ne… https://t.co/HmkiyxmjeW
— sandip sabharwal (@sandipsabharwal) 1614923539000
Time to be cautious?
Sabharwal said just when all brokerages went heads over heels to upgrade Indian equities, crude oil decided to stage a rally. “History has shown when all the FII brokerages turn extremely positive together, normally it is the time to be cautious.”
Just when all brokerages went Heads over Heels to upgrade #Indian Equities outlook #Crude decided to stage a rally.… https://t.co/QCB3aZEu09
— sandip sabharwal (@sandipsabharwal) 1614934103000
Rules are meant to be broken
Microcap investor and founder of MicroCapClub Ian Cassel recalled that in 1948, Benjamin Graham, widely known as the father of value investing, broke his rules and put 20% of his firms capital to work buying 50% of GEICO. “By 1972, it was a 562 bagger, returning more to his partners than all his other investments combined. You only need to find one great company early to change your life.”
In 1948, Ben Graham broke his rules and put 20% of his firms capital to work buying 50% of GEICO. By 1972, it was a… https://t.co/lk7KSyOgPT
— Ian Cassel (@iancassel) 1615078813000
Cassel said a great sign of investment maturity is when you can buy a stock at a higher price that you passed on at a lower price. “Sometimes a stock is a better buy at a higher price than it was at a lower price. It needed time to mature and develop from a speculation to an investment.”
A great sign of investment maturity is when you can buy a stock at a higher price that you passed on at a lower pri… https://t.co/nSZAg7H9wi
— Ian Cassel (@iancassel) 1615035528000
Short-term investors will accept a 20% gain because they didn’t spend the time to develop the conviction and foresi… https://t.co/dwbSzAwRSa
— Ian Cassel (@iancassel) 1615032954000
Some investors make money in stocks and some make fortunes. The former get shaken out of their best companies/winne… https://t.co/i1OoYl4rVF
— Ian Cassel (@iancassel) 1614944649000