Dear Investors,
Last week I had a privilege to attend a very good talk by value investor Mr Nitin Raheja in Chennai.I have summarised the talk and have posted it here so one can pick up few good points towards their investment strategies.
Mr.Nitin opened with the Importance of Management. He said as an investor, it is very important to keep learning all the time. He shared a few instances where he was convinced about the management which helped him to hold on to the stock despite a few other factors going against it. One such instance was when he held on to Infy (due to his strong conviction about the management) during mid nineties when couple of other firms downgraded the stock.
He also emphasised to look out for companies/managemen
Mr Nitin also gave his experience as a Fund Manager during the dot com crash and how it created a big learning experience for him.
One of the aspects he said is that Controlling Emotions is the key to making money.
He remarked that Adversity is the best time to put money to work. The same could be compared to bear markets in 2001 and in 2008.
Mr.Nitin wanted the investors to ask this question before investing
Why do you want to invest now? If the answer is you want to invest as you feel you are being left out it is better not to invest then.
When you get a feeling that you are left out of the rally – IT IS A TIME TO SELL
Mr.Nitin also shared that Sticking to the Basics Fundamentals of Investing is another important way to make money in the long run
In short term the markets are volatile, but in the long term it grows much better than any asset classes.
Mr.Nitin was also very bullish on the long term prospects for India. He said that India is growing at 6-7% GDP but now has a only 5% of incremental savings every year coming in to Equity Markets. Over a period, he remarked, that Domestic Money will replace FII's as the largest non promoter holdings.
Mr.Nitin also cautioned investor who tend to follow Momentum / Growth. He said that people pay a price for growth but when the market turns, their price gets pricier. In his opinion it is better to stick to Growth at Value Prices.
To sum up, the speaker wanted the investors to answer the following questions before investing
1. Know Yourself
2. Why you are investing?
3. What do you expect from investments?
4. What is your appetite for volatility?
At times valuations get ahead of fundamentals and at times fundamentals get ahead of valuations, if you know yourself and research your stocks and follow the basics with discipline you will be a very successful investor.
Happy Investing
Padmanabhan
9841438486
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