metal rally: Long & Short of Markets: Contra bets, spotting multibaggers and metals vs cement
Recognise trends beyond business cycles
It is a known fact in the investing world that to spot a multibagger, you need to spot the trend at a nascent stage and then stay invested for a long period of time. Legendary asset manager Ralph Wanger says that to spot great investment opportunities, investors have to look at trends beyond just business cycles. Revealing his philosophy, he says he identifies social, economic and technological trends that he thinks would last longer than business cycles.
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Move over metals, it’s time for cement
With the economy on the cusp of unlocking from the Covid second wave lockdowns, domestic demand is likely to surge. Ridham Desai, MD, Morgan Stanley, says that cement is a complete domestic-focussed play and with domestic demand swelling in the coming quarters, cement could be more exciting than metals.
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Contrarian, an all-weather approach
Legendary investors like Warren Buffett, Peter Lynch and John Templeton have mentioned many times how profitable contrarian approach to investing can be. Writing about contra investing in bull and bear markets, DK Aggarwal, CMD of SMC Investment and Advisors, opines that contra investing is highly profitable but only at key turning points in economic cycles or the company’s business cycles.
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Dark clouds clearing over financials?
Banking and financial sector is like a mirror to the economy because of its high correlation to macro-economic developments. Hence, the Covid second wave’s negative effect on Nifty Bank is quite obvious. But as the second wave is way past its peak, and the banking index is also on the path of recovery, Dalal Street is betting big on banking names.
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Say no to FOMO
In this interview, Dalal Street veteran Saurabh Mukherjea says that he’s happy to miss the commodity rally! Revealing his investment philosophy, he says that he would rather stick to his game of steady wealth creation, rather than figuring out commodity cycles.
, one of his favourite stocks, has delivered a steady cash flow compounding at 20 per cent in the last five years.
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