NEW DELHI: When the stock market weakened last week amid a surge in bond yields and the consolidation of the dollar index, Bitcoin was in the spotlight after its market value surged above $ 1 trillion for the first time. Anyone seeking to diversify their portfolio for hedging purposes prefers cryptocurrencies over gold.
In this edition of Tweet Buster, we bring you the best of precious stones investing, stock market prospects, and money-making ideas – all in 280 characters.
Bitcoin the new gold?
PMS fund manager Basant Maheshwari said Bitcoin had the best chance of replacing gold over the next several decades.
In the next few decades, #Bitcoin has the best chance of replacing #gold. Indians can easily tweet (thanks to our re… https://t.co/RLT8cP02pA
– Basant Maheshwari (@BMTheEquityDesk) 1613877570000
Prohibition against regulation
Deepak Shenoy, founder and CEO of Capital Mind, also spoke out in favor of cryptocurrency, saying it was a useful asset class. “I don’t support a total ban on Bitcoin in India, but I believe it is inevitable that it will be regulated much more closely. It will be impossible as a currency even if some people want to try, but it is a useful asset class.”
Fwiw, I do not support direct Bitcoin bans in India, but I believe it is inevitable that it will essentially become m … https://t.co/vRkHznuXHj
– Deepak Shenoy (@deepakshenoy) 1613445231000
Risk Mitigation Strategies
The value investor Abhishek Basumallick gave advice on reducing risk by buying quality, maintaining the circle of competence and appropriate diversification as well as stop-loss.
Reducing risk is an investor’s ultimate goal. Can be done through: – Buy quality – Stay within the circle of… https://t.co/0bYdLqKBVP
– Abhishek Basumallick (@a_basumallick) 1613482187000
Nithin Kamath, CEO of Zerodha, said the last month has been big for the stockbroking industry. “By far the best year for the market since 2010 was 2014. Nifty grew more than 30% and the industry added 13 lakh new demat accounts in one year. And in January 2021, 17 lakh new demat accounts were added in just one month Accounts added. ”
How big was January 2021 for the brokerage industry? By far the best year for the markets since 2010 was 2014. Nifty wa… https://t.co/ZqvbFkrnpn
– Nithin Kamath (@ Nithin0dha) 1613661862000
Here is the annual Demat supplement for the past 20 years. Stock brokers have as high a beta as possible. If someone asks … https://t.co/ROnzodOxEI
– Nithin Kamath (@ Nithin0dha) 1613734086000
Isn’t it better to rent?
Radhika Gupta, MD and CEO of Edelweiss Asset Management, questioned the financial logic of buying a home. “If you think investing is only logical, not emotional, think about owning real estate. Any calculation of the rental yield says that buying in a big city doesn’t make sense, but before the need to have a roof over your head, falls flat. “”
If you think investing is only logical and not emotional, think about owning real estate. Every rental return mathematically … https://t.co/WoyfRSFBT5
– Radhika Gupta (@iRadhikaGupta) 1613834987000
Don’t use a bull market to determine your risk appetite.
– Radhika Gupta (@iRadhikaGupta) 1613493685000
It’s all in the head
Ravi Dharamshi of ValueQuest Investment Advisors shared some behavioral investing tips to help you navigate the ups and downs of the market. “If you’ve gotten bearish looking at the valuations or the extent of the rally or lack of government incentive at any point in the last year, it’s virtually impossible for you to get bullish now. It’s your sanity, with You play. You can see the curve by the curve in every downtrend. ”
To stay invested through a very strong rally, it takes a lot more courage, courage and contrary thinking than if I stay … https://t.co/i4w0ttASH7
– Ravi Dharamshi (@ ravidharamshi77) 1613626091000
EPS versus PE
Kalpen Parekh, President of the DSP Mutual Fund, shared a useful value investing tip: Focus on EPS growth and don’t worry too much about high PE.
20 years ago – one of my earliest bosses told us that. Learn – you will be useful at some point – about your… https://t.co/SYfAV07c1k
– Kalpen Parekh (alKalpenParekh) 1613755181000
Equity funds versus hybrid funds
Parekh said stocks (Nifty TRI) had a return of 12.2 percent over the past 10 years, while equity and bond funds that always hold 30 percent in bonds had a similar return of 12.5 percent with lower volatility.
Last 10 years equity return (Nifty TRI): 12.2% equity and bond fund return (funds with always 30% bonds):… https://t.co/X5Up4nGV9w
– Kalpen Parekh (alKalpenParekh) 1613616132000
Time to Sell FMCG?
Independent market expert Sandip Sabharwal has made consumer stocks bearish. “Consumption stocks could be hardest hit as rising inflation affects disposable income across the board. The increase in gasoline and diesel in the past 4 months alone has cost 250,000 rupees. They are also very valuable and priced for perfection. Better options elsewhere, “he said.
Consumer stocks could be hardest hit as rising inflation affects disposable income across the board. Only the… https://t.co/gZdRbrVV3x
– Sandip Sabharwal (@sandipsabharwal) 1613637147000
Sabharwal gave an example of how investment distortion can cause you to miss an opportunity.
Investing Prejudice and Ignoring Opportunities During the first decade of the millennium, I was very optimistic about… https://t.co/NFBiVbp3M6
– Sandip Sabharwal (@sandipsabharwal) 1613370806000
How to find multi-excavators
Microcap hunter Ian Cassel explained what a 10 sustainable excavator would look like.
This is what a sustainable 10 digger looks like: Year 1: EPS -0.10 Year 2: EPS 0.10 Year 3: EPS 0.30 Year 4: E… https://t.co/COUiZ3zFl8
– Ian Cassel (@iancassel) 1613686017000
95% of the due diligence analyzes whether customers and employees are satisfied and why. Your advantage is that 95% of investors … https://t.co/6c54amnmbc
– Ian Cassel (@iancassel) 1613649888000
Your time horizon can be your greatest competitive advantage. https://t.co/4x9AObiurl
– Ian Cassel (@iancassel) 1613596876000