Tweet Buster: Contra investing and Indian markets next trillion dollar
NEW DELHI: The week gone by was full of action in Indias financial world, what with global legend Warren Buffetts Berkshire taking exposure to Indias startup sensation Paytm, the rupee plumbing new low and the economy putting up a world-beating performance!
On Friday, India reported June quarter GDP growth at 8.2 per cent, surpassing all projections and restoring the growth rate to levels posted during the UPA-II government. The timing has not gone unnoticed as it happened close on the heels of a raging UPA growth vs NDA growth debate.
Dalal Streets hyper-active twittereti, however, chose their topics, and words, carefully, focusing on money making and the art and science around it.
Let's first focus on how this Indian startup has found its place of pride in Buffett's kitty.
The business world was abuzz with news about Berkshires investment in Paytm. A lot of Dalal Street mavens hailed the move. But this tweet by Sandip Sabharwal raised eyebrows:
I am intrigued by the investment of #BerkshireHathaway into #Paytm There is no apparent MOAT in the business The o… https://t.co/hCKYzuQyMZ
— sandip sabharwal (@sandipsabharwal) 1535604912000
Are you, too, looking for this moat?
Value investor Safir Anand had something interesting to add about the valuation of Indian companies at a time when so many international businesses are looking to invest in India.
Some of the best news for valuation of cos in India: Berkshire Hathway: PayTM Walmart: Flipkart Amazon/Google-PayT… https://t.co/wgzAB1aOge
— Safir (@safiranand) 1535423847000
Anand also made a recommendation or two during the week. Take a look:
Continue to see good potential in paper and steel. Was reading how European paper prices have started moving up. St… https://t.co/hidcJrVtP8
— Safir (@safiranand) 1535521595000
Sabharwal, on the other hand, has a unique contra bet to offer.
#AnilAmbani finally seems to have cleared out the past mistakes. ADAG group has lost lot of prime assets in the ba… https://t.co/pkQu69wetw
— sandip sabharwal (@sandipsabharwal) 1535611448000
And since we are on the topic of contra investing, market veteran Shyam Shekhar drew an interesting analogy to explain what it actually means to go contra.
Armies of investors intensely gaze at the rear view mirror hoping to catch the next Bright star. A handful look be… https://t.co/zaErTY4NJ6
— Shyam Sekhar (@shyamsek) 1535717255000
Shekhar seemed to be in pensive mood this week, at least that's what his Twitter wall reflects. From stock market tips, to #beatingbenchmark being the new mantra, he had a lot to share:
In January, everybody felt they must bet on growth investing and bet only on mid caps. Now, all that every investo… https://t.co/XJD4Uk3xCI
— Shyam Sekhar (@shyamsek) 1535586403000
Most of us do wonderful #BuyMath. But, it is sensible #SellMath that makes us retain the riches. Notional gets turn… https://t.co/IZEiI5rp4R
— Shyam Sekhar (@shyamsek) 1535590508000
There comes a time in a momentum cycle when #TheSellerTakesItAll . It is usually when people are still buying dips… https://t.co/zpn9EEL5jE
— Shyam Sekhar (@shyamsek) 1535591171000
The biggest risk to this bull run is experienced investors genuinely believe they can create valuation premiums in… https://t.co/LiJUSomeMe
— Shyam Sekhar (@shyamsek) 1535774854000
Smallcap czar Porinju Veliyath gave thumbs up to latest GDP numbers, even as he reminded of his previous forecast of similar growth. He is convinced that the Indian stock market can add another trillion dollar to its market cap.
Yes, GDP growth is in line. Now, don't miss the next trillion dollars! https://t.co/k3yYVZvhUK
— Porinju Veliyath (@porinju) 1535770872000
As always, Samir Arora had some very witty observations to make with a dallob of sarcasm. This week, he targetted 'Fund Managers'.
If it's the thought that counts, then Samir Arora had a brilliant one:
Best place to manage India Fund is clearly Singapore. In Mumbai you get up and the market is about to open. In SG,… https://t.co/ImOi9Qg9Mk
— Samir Arora (@Iamsamirarora) 1535422064000
And then, a relevant point to make about how fund managers in India believe in being cryptic than direct, in stark contrast to how things are done in the US.
In US both long & short ideas are openly discussed in media by fund mgrs. Here we get cryptic clues: A MF mgr-who… https://t.co/CFPMALa8C0
— Samir Arora (@Iamsamirarora) 1535333945000
To top it all, here's a thought that might stay with you this weekend.
Did not know till now that In NIFTY MidCap Index, NSE changed 46 stocks in a 100 stock index in April 18. Imagine:… https://t.co/hhGxZclLUF
— Samir Arora (@Iamsamirarora) 1535285884000