Yes you read it right. I said it. Market is always wrong.

Let me clarify. I have seen a shitty company like Silverline, Crest Animation, Himachal futuristic, Global Tele in 4 digits and wondered why the hell would they quote at such high valuation when the balance sheet had NOTHING. WELL almost nothing.

Sure the prices crashed to single digits.

So when was the market right? when they were in 4 digits or when they were in single digit? If you held shares of Apple, it was IMPOSSIBLE to hold it through its roller coaster ride. That is what made it easy for me to hold on to Hdfc, Hdfc bank, Colgate, PnG, Kajaria Ceramics, Titan, easier. The former because the standard deviation was low and the latter because i had small quantities. Imagine if you had 100,000 silver line bought at Rs. 10 (issue price), you watched it go to 1300 (value Rs. 13 crores!!) and watch it go to Rs. 5! Could you have handled it? Would you have said ‘market is always right’?

Lotsa shit hit the roof when manipulated. Remember the Hunt brothers manipulating silver? The world never saw such prices EVER.

What about Nikkei? will we EVER see those prices again?

Will we interest rates at 18%pa? remember Reliance had issued bonds paying 18% p.a?

Here somebody has done a lot of effort to put together a story on ‘Market is always right’myth…read on…

The Market is Always Right?

 

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  1. Hi,

    The article you shared is scary -real scary. Imagine we run into one of these cycles and I guess all those people looking for wealth and are short on patience will come looking for people who have suggested them equity investment 😉

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