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TCSer
Senior Member
Joined: 17/Mar/2008
Location: India
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Posts: 1882
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   Posted: 28/Jun/2008 at 2:42am |
Originally posted by basant
India isn't going to grow at less then 7% at the worst, finally the long term PE bottom is 11 times forward assumung that we account zero for subsidiaries the sensex has never pierced that valuation ever - kargil, 9/11 all kinds of adverse news flow has been handled at that PE.
We should do an Eps of Rs 1000 for fy09 and in 6 months we should be discounting the Fy10 Eps of Rs 1150.
That should be a great bench,mark to think of the bottom also bottoms are price points that we reach for moment and there is no compulsion to trade at that price what investors should ask is where they would be one year hence from now and my argument is - higher.
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Yes that what I call a balanced realistic approach.Panic selling or buying is the biggest enemy of the investor.Controlling ones emotions of greed n fear are absolutely important for an investor but unfortunately one learns the same only the hard way.
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smartcat
Senior Member
Joined: 29/Mar/2007
Location: India
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Posts: 4243
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Posted: 29/Jun/2008 at 1:16pm |
Strangely, most of the content in the article "10 Rules for the Bear Market" would make sense even if we were in the bull market. All you need to do is replace "falling stock prices" to "rising stock prices".
Whether its a bull market or a bear market, I guess the basic rules of the stock market don't change much.
| Markets teach new lessons to old investors & old lessons to newer ones. And it goes on & on. |
Wah! Wah!
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CHINKI
Senior Member
Joined: 07/Feb/2007
Location: India
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Posts: 2827
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Posted: 29/Jun/2008 at 1:23pm |
Originally posted by smartcat
Whether its a bull market or a bear market, I guess the basic rules of the stock market don't change much. |
But unfortunately, those rules would be remembered only during bear market 
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TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO
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Vivek Sukhani
Senior Member
Joined: 23/Jul/2006
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Posts: 6675
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Posted: 29/Jun/2008 at 3:01pm |
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I am seeing my fellow friends trying to devise another strategy for the coming period.......they are looking for stocks which will jump first when the markets rebound. I somehow think this is one of the most flawed reasons for buying stocks. We are into stocks to make money consistently rather than to make money first or second. Such investing style defeats the very purpose of long term investment. I somehow get a bit worried when people say ek baar DLF phir se 600 rupee hoga or ek baar JP phir se 250 marega. I believe investors shall avoid getting into traps like this and concentrate on core principles of financial rules for making sound investing decisions.
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Ajith
Senior Member
Joined: 06/Aug/2006
Location: India
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Posts: 1284
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Posted: 29/Jun/2008 at 9:09pm |
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This is indeed a difficult period we are going through and taking
decisions has become difficult.In any case ,patience and good stock
picking will be rewarded over a period.But pain for some stocks may
continue and contrarian buying opportunities will emerge for
those with cash.Where the prospects are not good (relative to price)and valuations are
rich it may be wise to exit.
Edited by Ajith - 29/Jun/2008 at 9:10pm
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Ajith
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satya
Newbie
Joined: 17/Oct/2007
Location: India
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Posts: 24
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Posted: 30/Jun/2008 at 1:45pm |
8) It pays to stick with quality companies/sector leaders in non cyclical industries.
Basant sir this is the biggest lesson i have learned from u.
i used to think that when u are talking abour sector leader means it should be a BLUE CHIP or a NIFTY or SENSEX STOCK
A 100 cr. or 1,00,000 lakh cr. market cap company both these companies can be sector leaders in their own fields.
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basant
Admin Group
Joined: 01/Jan/2006
Location: India
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Posts: 18403
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Posted: 30/Jun/2008 at 2:07pm |
Originally posted by satya
8) It pays to stick with quality companies/sector leaders in non cyclical industries.
Basant sir this is the biggest lesson i have learned from u.
i used to think that when u are talking abour sector leader means it should be a BLUE CHIP or a NIFTY or SENSEX STOCK
A 100 cr. or 1,00,000 lakh cr. market cap company both these companies can be sector leaders in their own fields.
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Thanks. We are all learning some very painful lessons. 
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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valueman
Senior Member
Joined: 29/May/2007
Location: India
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Posts: 1134
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Posted: 30/Jun/2008 at 3:50pm |
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This is the first time I am facing a bearish phase in stock market as I entered Stock Market for the first time in 2003 .Luckily this is the same period I have good liquidity position due to sale of some Real estate and maturity of bonds/FDs etc and the bumper sale that market is offering now for some of the stocks that I was keen to invest is something I never expected and I am happy with this fall as I am getting the stocks at very much cheaper rates than I originally expected .
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To achieve satisfactory investment results is easier than most people realize ; to achieve superior results is harder than it looks .
Benjamin Graham.
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