In this edition of Tweet Buster, we look beyond the world of memes and social media jokes to scan the best of market gyaan from mavens.
Taking stock
PMS fund manager Shankar Sharma says that after going through the financials of stock broking companies he is sure that retail broking is a “crap business” as the best case ROCE is in mid-teens and the companies have zero pricing power.
Been seeing financials of broking cos: it just reinforces my long held view that retail broking is a crap business.
Best case ROCE:mid-teens.
Zero pricing power. Only vol-led growth ( unlike say, steel cos).
Risky as well & hugely wkg cap intensive.
It should be tops 10 PE biz— Shankar Sharma (@1shankarsharma) August 17, 2021
100 baggers!
Gurmeet Chadha, Co-founder & CEO, Complete Circle Capital, came out with a list of five mutual funds that have given 100x returns in 25 years. “It’s not MFs vs stocks but about making the right combo which suits you,” he says.
While we talk of 100 baggers stocks,#DidYouKnow there r equity MFs where NAV has gone up 100X in 25yrs
Birla Flexicap NAV 1104
Franklin prima 1444
Nippon growth 1908 (190 X)
Birla 95 fund 1035
Hdfc equity 911It’s not MF Vs stocks ,it’s abt making a right combo which suits u!
— Gurmeet Chadha (@connectgurmeet) August 18, 2021
How to become crorepati
Value investor Arun Mukherjee listed out this three-step process to earn Rs 100 crore from the market in 30 years.
How to earn 100crs in 30 years from markets:-
1. Starting early is important. Even age 30 is fine. Start with 1 lakh.
2..Monthly SIP in your stocks is the hidden secret. Put 10-12K every month
3..At 25% compounding for 30 years,you will reach your desired 100crs at age of 60
— Arun Mukherjee (@Arunstockguru) August 17, 2021
Global diversification
Radhika Gupta of Edelweiss Mutual Fund says investing in global funds became popular because they did well when the Indian market did badly. “How we handle the reverse is going to be even more important. Especially because comfort is always lower with foreign markets. The rule of diversification works in both directions,” she says.
Investing in global funds became popular because they did well, when Indian markets did badly. How we handle the reverse is going to be even more important. Especially because comfort is always lower with foreign markets. The rule of diversification works in both directions.
— Radhika Gupta (@iRadhikaGupta) August 22, 2021
False alarm?
PMS fund manager Basant Maheshwari says the best part of the developed market is their ‘Sher aaya’ attitude. “So when the ‘sher’ actually comes no one bothers to look. More the stats we get about ‘Fed taper’ less we will react when the taper actually happens,” says he.
The best part of the developed market is their ‘Sher aaya’ attitude. So when the ‘sher’ actually comes no one bothers to look. More the starts we get about ‘Fed taper’ less we will react when the taper actually happens.
— Basant Maheshwari (@BMTheEquityDesk) August 19, 2021
IPO Mania
Independent market expert Sandip Sabharwal says that IPO returns are tapering off as valuations become more and more obnoxious. “IPOs cannot be route to palm off high priced stocks to retail and gullible IPO chasing MF/FPI investors who indirectly handle retail money. Some planned IPOs of the next 3 months are even more absurdly priced,” says he.
#IPO returns tapering off as valuations become more & more obnoxious#IPO‘s cannot be route to palm off high prices stocks to retail & gullible IPO chasing MF/FPI investors who indirectly handle retail money
Some planned IPOs of the next 3 months are even more absurdly priced
— sandip sabharwal (@sandipsabharwal) August 20, 2021
Gems from Ian Cassel
Some of my biggest mistakes were when a new idea checked all the boxes really quick and I sat there sucking my thumb for an extra week trying to figure out what I was missing when I should have just bought a little – stock moves higher and you’re anchored to where it was.
— Ian Cassel (@iancassel) August 17, 2021
Due diligence doesn’t end with your purchase of a stock. It is just beginning. Your initial due diligence might get you invested but it’s your maintenance due diligence that will keep you invested. You need to check the vitals regularly. Know what you own at all times.
— Ian Cassel (@iancassel) August 21, 2021
Don’t get frustrated if people don’t like your investment ideas right away. That is the opportunity.
— Ian Cassel (@iancassel) August 21, 2021
Just because you lost money on an investment doesn’t mean you were wrong for making it. Sometimes you are dealt a great hand and still lose. You can’t let it get to you. Stand up, step back, shake it off, and sit back down at the table, and wait for your hand.
— Ian Cassel (@iancassel) August 20, 2021
