The same experts who in 2007 said markets are fairly priced at 21000 are saying it is overpriced at 18400. Are they wrong or is the market wrong?

Last week Shankar Sharma said he likes auto stocks. He was particularly bullish on Ta Mo. Ta Mo is one of my favorite stocks. When Mr. Ratan Tata took JLR, it looked like a foolish move – the turnaround has been SENSATIONAL.

However, in March-April 2010 I sold Hero Honda (Rs. 1994) and bought Shivam Int(Rs. 94) – an auto ancillary stock from the Munjal family. Today HH is at 1890 and Shivam is at 147.

What was the logic? Simple if the Indian markets did well, so will the ancillary manufacturers. However with a recovery happening in Europe and US, exports were sure to boom EVEN if the Indian auto markets did not do well. Well many Indian auto ancillary manufacturers may have even diverted finished goods to the more rewarding communities abroad 🙂

What about Mr. Shankar Sharma’s best friend Mr. Rakesh Jhunjhunwala?

He said fertilizer is a lousy business and not worth tracking. One of the gurus of value investing bought a fertiliser scrip for Rs. 130, WITHIN 8-10 months the share is quoting at Rs. 570. Not bad for a Saturday afternoon deal, is it not?

Moral: Even if you hear many expert views, use your own mind.

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  1. Like Deep Throat – Tracking the money trail of these so called Guru’s offers some clue – even though it may also be just an alibi for something else

  2. Subra

    This is not a comment
    What are your fees for Financial Planning
    you can send it to my email

    regards
    krishnan

  3. When most of the experts in TV’s suggest to “buy” a particular sector/stock with target XX, then they or their clients had already accumulated a portion of it earlier and now wanted to “SELL” at the target price that they ask retailers to “BUY”. Same is the case for “SELL” marketing…they wanted to buy the share at cheaper price for themselves or for their clients. that’s the truth. Many first timers and people who wanted to make quick money listen to this and most of the time they burn their fingers…Recently Mr Rakesh did the same “SELL” call for VIP industries in a channel and later in few weeks time he himself bought the stock in lakhs qty. In a financial market No Analyst will give free tip for others to make money…because it’s an endless race where everyone runs with a broken pot (our own mind) hoping to fill as much water we can.

  4. Yet people can’t digest their food without watching their favourite channel MCBC (or is it something else? 🙂 ) and the fat cat owner continues to devise newer and more innovative ways of minting money – he’s the new guru on cross-border competitivenes vis-a-vis Indo-China

  5. in fact I wanted to take a tution from him on how to market a book. He started the class saying…only people who own 4 tv channels are eligible to attend…so I am selling my book by speaking to friends. Funnily ‘egotism’ is a bigger disease than ‘alcoholism’. If the shareholders of the group companies were thinking corporate governance…ha ha ha.

    If somebody attributed market sponsorship costs for that book promotion, it would be a multiple of the sales. Reminds me of a super high flying fund house offering me a 3 night 4 day stay in a nice resort in Lonavala for logging in 5 sips of Rs. 1k each. If I had logged it in (I HAVE NEVER AND NEVER WILL DEAL WITH THAT HOUSE) taken my holiday and done a stop payment of future cheques….the only person crying would have been the shareholder :).
    mera bharat mahan…

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