Amazing Article,
This article is for self-proclaimed investors (market gurus) who think market will continuously move higher and higher.
It’s an eye opening article for them (many are on this forum). They are heavily averaging on every fall from ATH.
I like a satirical line in this article - ‘FIIs are idiots. Indian janta is genius.’
India janta is realy genius
I have read it multiple times, and i liked this one very much, mainly because, i rarely come across such articles that bluntly explains the harsh truths/reality.
In a time where most financial articles seem to be stock tips or marketing strategies, we rarely come across good ones that actually talk about reality, offering different perspective.
PS:
KUDOS to Zerodha and team for their efforts to spread the financial literacy and reducing the information arbitrage, through initiatives like The Daily Brief and other newsletters/blog, and not to forget the OG Varsity.
I’m already a big fan of his posts/blogs/articles.
I have read some of his Z-connect posts and even from Substack.
Will certainly check out more when I get time, @nithin_kumrr and just so that i don’t miss it, please do share in the forum, whenever he post something new.
Is this not the basic tenet of investing. To buy a fundamentally strong stock, give it time, sell a portion when price reach a pre determined target of the investor, take out most of the capital invested and allow the balance number of shares intact.
Do the first portion and keep buying when the same stock falls.
Classic case, TCS - Sold a portion when it had touched 4200 - average cost comes down and now it is 3,250,
Nothing fundamentally changed in this company, their order book is still USD 12.2 b for the last quarter. It might take time to reach back 4,200 but not worried, my average cost is way low when compared to the market price and to top it gives dividend every quarter.
I call it my FD in stock market, steady dividends Just like FDs which give out steady quarterly interest.
Disclaimer: I do agree that I burnt my fingers in doing averaging with Yes Bank. (was a investor during Rana Kapoor time - still holding it)