Tweet Buster: What Zerodha’s survey on Tesla found; plus, Nilesh Shah’s path to nirvana from PE

Tweet Buster: What Zerodha's survey on Tesla found; plus, Nilesh Shah's path to nirvana from PE

NEW DELHI: The week gone by had two good news: Fantastic numbers from IT majors and the beginning of the vaccination drive in India. Despite stocks volatility shooting up 16 per cent and Friday’s selloff, Sensex ended the week 0.5 per cent higher while Nifty gained 0.6 per cent.

Rumours related to Tesla‘s possible tie-up with Tata Motors kept Twitter abuzz despite the JLR-promoter denying any such move. IT bellwether Infosys’ Q3 numbers beat market estimates, but retail investors were left puzzled as to why the stock fell.

In this edition of Tweet Buster, we scan through timelines of market experts to bring out tips, investing strategies and market outlook.

Trading vs investing
Maverick investor Vijay Kedia, known for his one-liners, was at it again. Reviving the fight between traders and investors, he said: “Investing is like milking a cow. Trading (future) is like milking a bull.”

All paths lead to……
Sceptics have been upset with valuations in the ongoing bull run since the last few months. In this tweet, Nilesh Shah, managing director of Kotak Mahindra AMC, explains how in the world of stock market nothing else but price matters. “There is no one path to Nirvana. PE Ratio, PB Ratio, DCF, Market Cap to GDP, Price to sales so many ways to value a company. Ultimately there is only one Truth ” Bhav Bhagwan”. Price is Right,” Shah said.

Since 1986
Value investor Arun Mukherjee has compiled a list of seven stocks that have survived decades in the Sensex’s list of 30 stocks — ITC, Reliance, Tata Motors, Tata Steel, HUL, M&M and L&T.

The big Tesla question
Zerodha CEO Nithin Kamath ran a poll on Twitter asking Indians whether they want to buy the Tesla car or Tesla, the stock. Out of the close to 15,000 people that voted, an overwhelming majority of 80% were in favour of getting the stock listed on BSE and NSE where a lot more people can buy.

Make the best of mutual funds
Kalpen Parekh, President of DSP Investment Managers, has a tip for making money in mutual funds. “When markets rise, NAVs will make money. When markets don’t rise or fall – save more and add more units. Over time, wealth = NAV (markets) x units (our role),” he said.

ELSS: Not just for tax
For those looking to save taxes under 80C, ELSS mutual fund schemes have been popular as it comes with a lock-in period of just three years. Parekh, however, says such investors should stay put even after three years as ELSS is not just about saving income tax. “Tax saving shouldn’t be tax saving alone. Most investors redeem once three years are over. Tax saving hua, wealth creation nahi?,” Parekh said.

Should you buy Infosys?
Independent market expert Sandip Sabharwal listed out 3 factors which led investors sell Infosys despite reporting fantastic Q3 numbers. He said while the margins might not sustain, valuations are already at a multi-year high. “Stock up 70% over Pre-Covid levels of last year, while current year growth is 5%. Next year expected growth is 8-10%,” he said.

Growth vs value stocks
Sabharwal said growth and value stocks should be valued differently as in most cases growth stocks would have a better future than value stocks. “However, at various points of time the valuation differentials become extreme and that is the time to re-align,” he said.

Time to book profits
Sabharwal explains why he is busy booking profits in the ongoing bull run. “The problem in this market is that the targets of stocks we thought will come in 12-18 months are coming in 3-4 months. So either like broking house analysts we can keep on upgrading the price target or book profits. In most cases, I choose to book profits,” he said.

Handling losses
Microcap investor Ian Cassel has a piece of advice for those who have lost money in the stock market: “Just because you lost money on an investment doesn’t mean you were wrong for making it. Sometimes, you are dealt a great hand and still lose. Don’t let it get to you. Stand up, shake it off, sit back down at the table, and wait for your hand.”

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