Tweet Buster: Two timeless weapons that can help you be a better investor

In this edition of Tweet Buster, we bring you the best of market gyaan, investing strategies and the do’s and don’ts of investing in a volatile market.

The MF benefit

DSP Mutual Fund’s Kalpen Parekh explained the benefit of portfolio approach of mutual funds.

Illusion

Parekh said in this market when all types of stocks are at highs, it creates an illusion that our own style works. “It’s not the style, it’s the entire market working.”

Toolkit

Parekh said the best weapons for us to be a good investor are those that are very cliched: SIP and automated asset allocation.

Supercycle?

Dalal Street veteran Basant Maheshwari said the needle that bursts a commodity run is supply. “If there’s no supply there’s no needle. Kids researching commodity stocks were in college when the last cycle was playing out.”

Investors vs Customers

PMS fund manager Shyam Sekhar said some companies are great only for shareholders and are not so great for their customers. “What investors love, customers hate.”

Value vs Growth

Sekhar said from the bottom of the bear market, every PSU navaratna company has beaten every FMCG bluechip hollow on returns. “When the discount to intrinsic value is the highest, returns will be significantly more. That is when value investing gets its best chance to trump growth stocks.”

Little upside?

Independent market expert Sandip Sabharwal said TCS results were strong as expected but missed estimates marginally on the topline and by a decent extent on margins. “Will be tough to build on priced to perfection valuations. Margins could further come under pressure, salary inflation is high, back to office, start of travel etc,” he said.

Flexibility pays

Deepak Shenoy of Capitalmind said one should be an investment philosophy and be ready to change it ever so often when the market slaps you across the face. “No matter what you do, there’s a good chance it will have a chance to link to your original philosophy, otherwise you can say know when to break the rules.”