Analysts said the blockade of Covid and the tendency to work from home facilitated smooth market entry on Daral Street as investors got into the tide when Buffett’s favorite stocks were “priced down”, and that risk compensation Was rewarded by many.
“People opening demat accounts was a phenomenon caused by the blockade when people were forced to sit at home and had nothing to do. It was easy for them to take advantage of their time. The way it was, and with the first success, they continued it. These investors came when the old investors were already burning their fingers. They weren’t afraid of the downside. “IITian turned into a value investor, said Gaurav Sud.
“The crowd is right in most cases. Everyone who had the feeling of being left behind in the rally until January entered the market and made a lot of money,” he said.
Here are some of Buffett’s quotes that seemed to have worked for investors in difficult years:
“When others are greedy, they are afraid, when others are afraid, they are greedy.”
What has never happened on Daral Street as the global equity market is hitting the pandemic problem. The market was plagued by uncertainty about Covid-19 and its economic implications, but new investors hit numerous streets, with total demats increasing by more than 28% as of December 30. It became 5,87,90,930. Rs 128 million year-on-year. The risk has paid off. BSE since the lows in March Sensex The mid-cap and small-cap indexes rose 87% and 108%, respectively, but rose 86%. Overall, domestic investors have reached the end of the year with a wealth of Rs 320,000, as suggested by the surge in BSE market capitalization.
“I like to buy high quality products when they are marked down, whether socks or in stock.”
Quality comes at a cost, and growth is good only if the return on equity is greater than the cost of capital. However, thanks to Covid’s fears, more than 180 shares in the BSE500 pack plummeted by more than 50% in the first three months of the 2020 calendar. Over 300 stocks have plummeted by more than 40% by March. The plunge gave investors the “reduced price” they were looking for in January, when the benchmark index dominated at record highs. The price you pay for a stock ultimately determines the return on your investment. The strategy is to buy quality companies at “reduced” prices, if available.
“Opportunities are rare. When it comes down, take a bucket instead of a thimble.
You should seize the wonderful opportunity to come. Nearly 260 stocks in the BSE500 index, if not one or two, doubled the money of investors who bought them at 52-week lows. This list includes largecaps as well as the names of midcaps and smallcaps.List included IndusInd BankWas up 288 percent from the 52-week low of 235 rupees. Bajaj Finance rose 191 percent from its 52-week low of Rs 1,783. Tata Motors, JSW Steel, Mahindra & Mahindra, Hindalco and Tata Steel are other large caps that have risen 150-180% from their 52-week lows. 21 in total Nifty Stocks have doubled investor money from 52-week lows.
“The stock market is designed to transfer money from active people to patients.”
Those who sat tight when Sensex plunged from record highs in January were still making money in difficult years. The Sensex hit a record high of 47,807 last week, rising from January’s record high of 41,000 odd levels. However, it remains to be seen if new investors will be here for a long time to enter the market after March.
“I think they will be more day trading types. Some will make a profit soon. Some will book a loss soon. They are where the market is heading. You will be a fearless person in terms of being. These investors have no past experience and this is also their greatest asset and liability. Many volatility in terms of liquidity at various counters. Will bring depth. ” Raamdeo Agrawal I told ETNOW in an exclusive interview.
“If you haven’t invested, you’re wrong.”
Buffett says people shouldn’t find comfort in cash equivalents. If so, they may have opted for terrible long-term assets. It pays virtually nothing and is definitely depreciated. Covid’s year was a year when savings and time deposit earnings were hit. Inflation, on the other hand, remained fairly high, with prints in November at 6.93 percent and prints in October at 7.61 percent. Equities, albeit at risk, yielded a 15% return over the period. Investing in gold, which is considered a safe haven, has in fact made significant profits this year. Inflation raises the price of goods and services, thus reducing the value of goods that can be purchased for the same amount over time.
Warren Buffett: Five Investment Lessons from Warren Buffett After the 2020 Rebound
https://economictimes.indiatimes.com/markets/stocks/news/5-investing-lessons-from-warren-buffett-after-the-rebound-of-2020/articleshow/80091509.cms Warren Buffett: Five Investment Lessons from Warren Buffett After the 2020 Rebound