Below is the interview of Madhusudan Kela, Navin Agarwal, Sanjoy Bhattacharyya & Raamdeo Agrawal on CNBC-TV18 during the 19th Wealth Creation Study Panel Discussion by Motilala Oswal.
In an interview, market expert Saurabh Mukherjee talks about his book, Gurus of Chaos, on India's top money masters, and what it takes to succeed in the Indian market and at investing in general.
In 2012, the Forbes India Investment Special introduced two portfolios to the readers. The capital preservation portfolio was meant for the conservative investor.
The effect has been seen in the tumultuous state of the markets and the rupee in 2013. But just as the country was learning to grapple with this America-born demon, there is the prospect of another more local event that the markets now both dread and anticipate: The Lok Sabha elections in 2014.
With hindsight, we can say that this issue is really one of a piece with our last one, which was about raising the questions that 2014 will have to answer.
While no perfect answer exists in specifying the ideal level of diversification, it is worth remembering that the universe of “neglected stocks†is not representative of the broader market since it is a very unique subset of companies.
As a rule of thumb, if less than five analysts cover the stock and provide earnings forecasts, you are justified in assuming neglect.
Academics and practitioners have long been stumped by the Neglected Firm Effect. The crux of the anomaly relates to superior returns, adjusted for risk, over an extended period of time with hardly any exceptions!
Look for bargains in the current market situation, not 'safe' stocks
Book value and PE ratio are common yardsticks to value a business. But they need to be put in perspective to arrive at a true picture.
The real challenge is to maximise the owner earnings you expect to receive from your initial investment over the holding period
The huge advantage we investors need to cultivate is not to fall victim to the power of conventional thinking.
In 2012, the Forbes India investment special introduced two portfolios to the readers. The capital preservation portfolio was meant for the conservative investor.
Enjoy the action-packed thriller that awaits you in the next few months but be sure you know exactly where the exits are before the theatre catches fire.
The ability to recognise fear and greed trumping fundamentals is the key to superior returns
Be patient when stock prices fall. You don‘t lose money when prices fall—only when you sell at those prices.
No matter how attractive a stock, avoid it if you are unwilling to bear the cost of being wrong.
Sit on the sidelines, watch others get rich instead of plunging in and singeing yourself.