In this edition of Tweet Buster, we bring you the best of investing gems, stock market outlook and money-making ideas — all in 280 characters.
Bitcoin the new gold?
PMS fund manager Basant Maheshwari said over the next few decades, Bitcoin has the best chance to replace gold.
Over the next few decades #Bitcoin has the best chance to replace #gold. Indians can just tweet (thanks to our re… https://t.co/RLT8cP02pA
— Basant Maheshwari (@BMTheEquityDesk) 1613877570000
Ban vs regulation
Deepak Shenoy, founder and CEO of Capital Mind, also came out in support of cryptocurrency, saying it is a useful asset class. “I don’t support an outright ban on bitcoin in India, but I believe it’s inevitable that it gets substantially more regulated. It’s going to be impossible as a currency even if some people want to try, but it’s a useful asset class.”
Fwiw, I don’t support outright bans of bitcoin in India, but I believe it’s inevitable that it gets substantially m… https://t.co/vRkHznuXHj
— Deepak Shenoy (@deepakshenoy) 1613445231000
Risk reduction strategies
Value investor Abhishek Basumallick shared advice on how to reduce risk by buying quality, staying within one’s circle of competence and having adequate diversification along with a stop loss.
Reducing risk is the foremost objective of an investor. Can be done by:- buying quality- staying within circle of… https://t.co/0bYdLqKBVP
— Abhishek Basumallick (@a_basumallick) 1613482187000
Zerodha CEO Nithin Kamath said the last month was big for the stock broking industry. “The best year for the market since 2010 was by far 2014. Nifty was up more than 30% and the industry added 13 lakh new demat accounts in 1 year. And, January 2021, just in 1 month 17 lakh new demat accounts were added.”
How big was Jan 2021 for the broking industry? The best year for the markets since 2010 was by far 2014. Nifty wa… https://t.co/ZqvbFkrnpn
— Nithin Kamath (@Nithin0dha) 1613661862000
Here’s the yearly Demat addition for the last 20yrs. Stockbroking is as high beta as it can get. When someone asks… https://t.co/ROnzodOxEI
— Nithin Kamath (@Nithin0dha) 1613734086000
Isn’t renting better?
Radhika Gupta, MD and CEO, Edelweiss Asset Management, questioned the financial logic of buying a house. “If you think investing is only logical, and not emotional, think about real estate ownership. Any rental yield math tells you buying in a big city makes no sense, but falls flat in front of the need to have a roof over the head.”
If you think investing is only logical and not emotional, think about real estate ownership. Any rental yield math… https://t.co/WoyfRSFBT5
— Radhika Gupta (@iRadhikaGupta) 1613834987000
Don’t use a bull market to decide your risk appetite.
— Radhika Gupta (@iRadhikaGupta) 1613493685000
It’s all in the mind
Ravi Dharamshi of ValueQuest Investment Advisors shared some tips on behavioural investing to help you navigate the ups and downs of market. “If you got bearish looking at valuations or extent of rally or lack of stimulus from govt at any point last year then it is virtually impossible for you to turn bullish now. It is your mind playing games with you. You can see the bend of the curve in every down tick.”
Staying invested through a very strong rally requires far more guts, courage and contrarian thinking than staying i… https://t.co/i4w0ttASH7
— Ravi Dharamshi (@ravidharamshi77) 1613626091000
EPS vs PE
Kalpen Parekh, President at DSP Mutual Fund, shared a useful value investing tip: Focus on growing EPS and not worry too much about high PE.
20 years back – one of my earliest bosses told this to us. Learn – you will eventually earnBe useful – via your… https://t.co/SYfAV07c1k
— Kalpen Parekh (@KalpenParekh) 1613755181000
Equity funds vs hybrid funds
Parekh said during the last 10 years, equity (Nifty TRI) delivered 12.2 per cent returns while equity & bond funds that always have 30 per cent in bonds have given a similar return of 12.5 per cent with lower volatility.
Last 10 yearsEquity returns (Nifty TRI) : 12.2%Equity & Bond fund returns (fund that always has 30% in bonds) :… https://t.co/X5Up4nGV9w
— Kalpen Parekh (@KalpenParekh) 1613616132000
Time to sell FMCG?
Independent market expert Sandip Sabharwal has turned bearish on consumption stocks. “Consumption stocks could be most impacted as rising inflation across the board impacts disposable incomes. Just the rise in petrol and diesel over the last 4 months takes away ~ Rs 250,000 crore. They are also very richly valued and priced for perfection. Better opportunities elsewhere,” he said.
Consumption stocks could be most impacted as rising inflation across the board impacts disposable incomesJust the… https://t.co/gZdRbrVV3x
— sandip sabharwal (@sandipsabharwal) 1613637147000
Sabharwal shared an example of how an investing bias can make you miss an opportunity.
Biases of investing & ignoring opportunitiesIn the first decade of the millennium I was very bullish on… https://t.co/NFBiVbp3M6
— sandip sabharwal (@sandipsabharwal) 1613370806000
How to find multibaggers
Microcap hunter Ian Cassel explained how a sustainable 10-bagger would look like.
This is what a sustainable 10-bagger looks like: Year 1: EPS -0.10 Year 2: EPS 0.10 Year 3: EPS 0.30 Year 4: E… https://t.co/COUiZ3zFl8
— Ian Cassel (@iancassel) 1613686017000
95% of due diligence is analyzing if customers and employees are happy and why. Your edge is that 95% of investors… https://t.co/6c54amnmbc
— Ian Cassel (@iancassel) 1613649888000
Your time horizon can be your biggest competitive advantage. https://t.co/4x9AObiurl
— Ian Cassel (@iancassel) 1613596876000