Zerodha: Tweet Buster: Zerodha CEO calls market rally painful & Kedia’s poetic twist to Street gyan

We scan the social media platform to bring out the best of market gyan, investing strategies, money-making ideas and behavioural skills from some of the top Street mavens.

Do opinions matter in the market?
For Zerodha CEO Nithin Kamath, the ongoing bull run is also the most painful market rally of all times. “So many of my ‘expert’ friends (and I) have been calling a top for many months now,” he said. With an emoji of a zipper-mouth face, he said that is what you should make of expert opinions – maybe they work once in a while.”

Small is beautiful
Kochi-based ace investor Porinju Veliyath shared a smallcap portfolio that is up 45 per cent in three months vs Sensex’s 23 per cent gain during the period. “I think the smallcap space (<Rs 8,000 cr), which is being thrown into dustbin by mutual funds since 2018, still offers great opportunity for direct investment. Hunt for deep values with earning visibility.”

Kedia’s 10th song
As the Sensex hit 50,000, maverick investor Vijay Kedia released his 10th song on the stock market – ‘Abhi toh party shuru hui hain’ — giving a poetic touch to market gyan.

In another tweet, he came up with a Budget wish list, once again with a poetic twist.

Allocation strategy
PMS fund manager Basant Maheshwari said stock picking by itself doesn’t guarantee success. “You need to put large sums of money to work. Where do you get more money in the initial days? Beg, borrow or steal – put more money to work. If the overall allocation isn’t much, stock picking will remain only a paper achievement.”

Compounding hacks
Kalpen Parekh, President at DSP Mutual Fund, shared two simple hacks for compounding — don’t be in a hurry and go slow to last long.

Mind games
Behavioural finance expert Morgan Housel shared two good investing skills — changing your mind when the facts change and not changing your mind when the facts haven’t changed.

Sell all the junk
Independent market expert Sandip Sabharwal said a bull market gives exit in everything, even the worst of junk stocks. A bear market gives entry in everything, even the best of quality stocks, he said.

Crypto warning
Sabharwal, who has earlier described cryptocurrency as a ponzi scheme, said virtual currency is the only asset class where retail investments far surpass institutional investments. “This is a reverse of the growth of most asset classes, which makes them prone to more volatility and possibility of very sharp falls if other assets in their portfolios lose value.”