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1. Which event in the history of the Indian stock market would you relate to the victory 83 cricket world cup?
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The way the market bounced back after the covid-19 crash in 2020 was a historic victory for the market participants who held onto their nerves and faced extreme uncertainties including end of the world kind of scenarios. When Covid-19 hit, equities were the underdogs given the complete economic shutdowns and huge uncertainty on the sustainability of many businesses such as real estate, travel, hospitality, and entertainment among others, and many argued reallocation to assets such as cash, gold, ..crypto or other commodities. However, investors with a long-term belief in equities came out winners against all odds.
2. Do you think, just like winning the toss at the start of the match can be one of the deciding factors for the outcome of the match, subscription numbers should also be one of the factors for selecting an IPO?
More than the toss, it is the strength of the team which decides the outcome of a match. Similarly, making money in stocks does not depend on whether the stock was bought during an IPO or from the secondary market, what matters is the fundamentals of the company and the discount to the intrinsic value at which the stock is bought. Looking at the oversubscription numbers in an IPO and investing for listing gains is very speculative and quite often results in a loss. So, to make heads or tails of it focus on valuation and fundamentals only. Also, why bet on a single stock when you can seamlessly buy a full team of stocks on smallcase?
3. How do you decide your investment strategy for the investors whether they should opt for a Test match or One Day or T20?
Investing in equities is always a ‘Test’ match. And there are specifically three Tests that an investor must pass to win this game – the Test of Originality, the Test of Character and the Test of Patience. Investors need the strength of character to execute the game plan with conviction even if it is against the conventional wisdom and finally, have the patience and stick to the plan even in the face of setbacks. In equities, the time horizon (format) itself tilts the chances of winning in favour of investors (Test match) and away from traders (T20) so choose your game cautiously.
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