Tweet Buster: Zerodha CEO Nithin Kamath’s honest admission on predicting the market wrongly

In this edition of Tweet Buster, we look beyond the market noise to help you navigate market uncertainty and help decision-making.

Did you pass the test?

Nilesh Shah of Kotak AMC said the most important thing is the agni pariksha of SIP investors in March 2020. “SIP returns were negative for three years, low single-digit for 5-7 years and mid single-digit for 7-10 years. Today’s double-digit returns are available only to those who remained invested,” says he.

On a song

Maverick investor Vijay Kedia has just released his eleventh song on the stock market –
‘New high daily bana rahe ho’.

Honest admission

Zerodha CEO Nithin Kamath said the crazy bit about the last rally is that every day I get up thinking shit is going to hit the fan. “I have been in the markets for 20+ years and run a brokerage, despite that I couldn’t have been more wrong about my market predictions in the last 18+ months,” he says.

Real Estate vs MFs

Radhika Gupta of Edelweiss Mutual Fund gave an example of her relative to explain the predicaments of investing in real estate.

Myth Buster

Gupta said a momentum balanced advantage fund (BAF) takes higher risk than a value BAF. “Both take high equity exposure – just at different times. Trust the data, not the narrative. Risk is in line with category average,” says she.

Sensex’s Journey

Ravi Dharamshi of Valuequest Investment Advisors said when Sensex crossed 6,000 for the first time in 2003, retail investors were jumping over each other to get out of the market. “Sensex eventually went to 21,000. In each previous bull market indices have gone 5x-7x since the point of maximum pessimism. March 2020 and Sensex below 26k is the point of maximum pessimism for this bull market: Draw your own conclusion, where we can be before this bull market ends,” he said.

Gems from Ian Cassel