I am copying and creating a new topic of what retail investors can do and I found the suggestions given by Akash Shah very useful. This was in relation to DHFL fallout and one user had mentioned that he had invested in DHFL bonds.
I fully endorse what Aksash has written in his post, me too tried to average out the yes bank shares when the writing was on the wall. When I was averaging, the price was around 50. Should have just taken a loss and gone for other things, instead, my thought was to average. This was a classic case of good money been thrown on bad investment and in the end both will be lost.
The management of Yes Bank was almost on a monthly basis was on CNBC TV talking about the progress being made. The CEO was a ex deutsche bank person. He was very articulate in his narrative that things were getting better and better. My opinion changed when this guy came in and there was a member appointed by Reserve Bank as a board member. I thought when so many external guys are looking into the figures, the fortunes of this bank would change.
But I thank SBI and other private bank who pitched in to save the bank. Think of the systemic risk that would have caused if yes bank had failed. So many innocent depositors would have lost their hard earned money. For equity investors, we knew the risk we were taking.
Another sad part was the AT1 Bond holders. I am told and RBI even penalised Yes Bank for mis selling the bond to depositors as superior FD.
One other learning lesson - do not get too friendly with the Relationship Manager - always keep an arms length distance with them. Once you become friendly, they will try to sell their targets to you.
