Storytelling is the biggest bullshit in stock markets, says Sanjoy Bhattacharya

IPFEAST 4.0 LEGENDS by Safir Anand

Market veteran Sanjoy Bhattacharya believes that one of the biggest misconceptions in the stock market is the growing reliance on storytelling over evidence. Speaking on the sidelines of IPFEAST 4.0 LEGENDS, conceptualised by ANAND & ANAND and curated by Safir Anand in New Delhi, Bhattacharya said investing should be grounded in data, not driven by imagination.

He described storytelling as the “biggest bullshit that goes around in stock markets,” adding that investing must be “evidence-based.” “We’re not in the business of winning Pulitzer Prizes or getting Nobel Prizes for literature,” he said. “A great imagination is useful, but it doesn’t cut it. You need to be rational, look at the data, and make decisions. You’ll still be lucky if you get 25 percent of them right.”

Bhattacharya said many investors in India now rely heavily on narratives rather than facts. “It’s become a current in India that you depend primarily on storytelling and imagination,” he noted. “That’s odd because Indians worship Warren Buffett, who is known for his rationality, not for storytelling.”

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Explaining why stories continue to dominate market sentiment, he said, “The less you understand about something, the more impressed you are by it. If something is complex, you feel like you’ve crossed a frontier by owning it. The simple, boring things just don’t appeal to most investors. As Paul Samuelson said, investing should be like watching paint dry. If you want excitement, go to a casino.”

Reflecting on his own investing journey, Bhattacharya admitted to several mistakes early in his career: buying companies where promoters lacked integrity, investing in businesses he didn’t understand (including Infosys at one point), and placing too much faith in reported earnings. “They can easily be manipulated. It took me a while to realise that,” he said.

He also underlined the need for independent thinking and patience in markets. “Being contrarian means suffering sometimes,” he said. “Stock prices go nowhere for a while. You have to ask whether it’s your ego or your thesis. If you’re wrong, admit it and move on.”

Bhattacharya added that the stock market is demanding and not suited for everyone. “It’s tough and requires hard work,” he said. “Three things matter most: patience, humility, and luck.”

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