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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