The original article appears here on the website of Forbes India.
The quality of the people running the show can make or break an investment decision, says master investor Nemish Shah
Nemish Shah is a reclusive man. He has not met the media for over 15 years. Even after Axis Bank took over his firm Enam Securities in 2010, he was neither seen at press conferences nor were his pictures bandied about in the media. So when he agreed to talk to Forbes India about his investment philosophy, we were excited. We met him at his sprawling office in downtown Mumbai’s Express Towers with stunning vistas of the Arabian Sea. The office is simple with light brown furniture and plenty of open space. There is no receptionist. It is quiet but it does not have the coldness of a private equity firm.
Shah, 59, co-founder and director of Enam Holdings, comes out and smiles warmly. He ushers us into his room at the appointed time of 12.15 pm. Tall and fit, the master investor, walks in a brisk manner. And we quickly get down to business.
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This post originally appeared here and is by Mastermind, Sana Securities.
Meeting with individual investors over the years has taught me much about investing mistakes. No matter how you classify investors (i.e. fundamental, technical or confused), the mistakes they make are almost invariably identical.
While some mistakes are the result of simply not knowing what to do, many are the results of either (i) losing interest; or (ii) getting overly greedy or fearful, particularly when the tide turns. In either case, much money is lost when people assume things will simply take care of themselves.
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As per Wikipedia, A stock trader or equity trader or share trader is a person or company involved in trading equity securities. Stock traders may be an agent, hedger, arbitrageur, speculator, stockbroker or investor. A stock investor is an individual or company who puts money to use for the purchase of equity securities, offering potential profitable returns, as interest, income, or appreciation in value (capital gains).
So what kind of a trader are you? Read this post, the original of which appears here on the website of Mastermind, Bramesh Bhandari.
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A common phenomenon that happens to all investors. Having bought a stock, how do we handle declines? Here are a few thoughts and ideas posted from the blog post that originally appeared here. While these may be talking about US stocks, the underlying philosophy applies to all investors be they in New York or London or Singapore or even in Mumbai.
- Avoid falling in love with a company or its stock. The emotional attachment will cloud your judgement and prevent you from making sound decisions in the market. The “pet stock” phenomenon occurs more often than you may think.
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This article originally appeared on http://value-picks.blogspot.in/. The link to the original article is given at the end of the post.
Stock investors constantly hear the wisdom of diversification. The concept is to simply not put all of your eggs in one basket, which in turn helps mitigate risk, and generally leads to better performance or return on investment. Diversifying your hard-earned dollars does make sense, but there are different ways of diversifying, and there are different portfolio types. We look at the following portfolio types and suggest how to get started building them: aggressive, defensive, income, speculative and hybrid. It is important to understand that building a portfolio will require research and some effort. Having said that, let’s have a peek across our five portfolios to gain a better understanding of each and get you started.
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The Union Budget of India – a financial exercise in the largest democracy of the world! It is the day when the Finance Minister of India cracks the whip as he presents the Annual Financial Statement. The Indian hoi polloi are so used to increase (well sometimes decrease too) in taxes, duties etc. It is that day of the year that holds so much of hope and despair too. 11 am IST and the markets watch with bated breath as stocks either soar high or come hurtling down.
As we approach the budget day of 2016, the question on top of everyone’s mind then always is how will the stock market behave this year? At Stock Architect, we are always gleaning through information trying to bring you something interesting. We found this post which we are sure you will love to read and understand. May this Budget Day ring in prosperity for all investors.
How Stock market behaves during budget?
Panic in the stock market? Historical budget data says NO
Market is going to go down substantially!!
Government is going to give this time a very good budget !!
This budget is very very unique and a game changer !!!
Above three are most running rumors or humors that move around stock market, but they are present for all budgets. The following table indicates data of returns by Sensex in pre and post budget sessions for recent four budgets.
| Pre-Post |
2012 |
2013 |
2014 |
2015 |
| 1st day |
-1.55% |
0.17% |
1.25% |
0.63% |
| 2nd day |
-1.09% |
0.69% |
0.40% |
0.48% |
| 3rd day |
-0.16% |
0.04% |
1.27% |
-0.78% |
| 4th day |
2.09% |
-1.62% |
-0.07% |
-0.88% |
| 5th day |
0.48% |
-0.04% |
0.54% |
0.10% |
| 6th day |
1.28% |
0.08% |
0.53% |
0.01% |
| 7th day |
0.59% |
-1.64% |
-1.98% |
-0.90% |
| 8th day |
-1.36% |
0.72% |
-0.54% |
1.65% |
| Budget |
-1.19% |
-1.52% |
-0.28% |
0.48% |
| 10th day |
-1.10% |
0.30% |
-1.37% |
0.33% |
| 11th day |
0.25% |
-0.21% |
-0.07% |
0.46% |
| 12th day |
1.65% |
1.40% |
0.89% |
-0.72% |
| 13th day |
-2.30% |
0.57% |
1.27% |
0.23% |
| 14th day |
0.96% |
0.84% |
0.04% |
-2.05% |
| 15th day |
-1.78% |
1.39% |
0.31% |
-0.47% |
| 16th day |
1.20% |
-0.19% |
0.29% |
-0.18% |
| 17th day |
-0.79% |
-0.41% |
1.21% |
0.95% |
| Average 17 days |
-0.17% |
0.03% |
0.22% |
-0.04% |
| Change(1st day till 17th day) |
-3.28% |
-0.54% |
4.17% |
-2.17% |
| Pre Budget – Market Performance
(Expectation )
(1st to 8th day) |
Market was neutral |
Market was down |
Market was
up |
Market was
Neutral |
| Post Budget-Market performance
(Reaction)
(9th to 17th day) |
Market
went
down |
Market went
up |
Market
went
up |
Market
went
down |
Data for sensex pre budget 8 sessions and post budget 8 sessions as shown in the table provides following takeaways,
- Highest closing loss was 2.30% viz previous day closing in last four years data during budget period
- Highest closing Gain was 2.09% viz previous day closing in last four years data during budget period
- 1st day to 17th day keeping the budget session in centre; Gain was maximum 4.17% during 2014 and loss was maximum -3.28% in year 2012
- Market expectation and market reaction over 17 trading sessions as shown in table clearly show that market did factor in plus and minus viz pre and post but it was not huge number
What should be done in pre budget and post budget rally??
- Data indicates it is better to be patient nothing big is going to happen in pre or post budget sessions, if you think long-term (it is important event but over long-term)
- Data suggests stay away from intraday positions and sector specific calls as it is very difficult to time market especially during Budget days
- In case of trading don’t get exposed to single sector, have diversified calls
- Even after budget declaration, you can buy from the market. The market is not going to close immediately after.
- Even if looking to invest in the hope that budget will be good, go and buy Nifty or Nifty ETF to play safe.
Although, there is a risk reward relationship, it is better to keep away from short-term greed for gains and if at all trade be initiated, it should be under the guidance of your expert, who can guide you for the long-term. As Trading / calls / investment decisions will be sole responsibility of readers, readers are advised to consult their expert before taking any action / decision.
The original article appears here – https://expertmile.com/arti.php?article_id=1016&title=How-Stock-market-behaves-during-budget#sthash.hbdGUH4d.dpuf
Recently, a team member came across this article in Forbes Magazine which talked about leveraging the collective wisdom of people in the organisation. Extending that same thought process, can’t we do something similar when investing. We have investors, analysts etc. discussing their ideas and stock picks on social media. Why can’t we leverage their collective wisdom to make the right pick? Think on it.
Do you have a solution in place that can help you achieve this? Yes help is at hand.
www.stockarchitect.com is the URL for getting the answers to the questions you seek. Do visit the website and give us your valued feedback.
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Reblogged from stocktwits.com
