What’s right about stocks rally; plus\, why Buffett is slowing

NEW DELHI: With the markets rallying at breakneck speed, which is being attributed to the glut of liquidity, the mavens on Dalal Street have stopped second-guessing or dissing the market rise.

They have thrown in the towel, saying ‘Bhaav Bhagwaan Che’, which translates into ‘price is the king.’ They have now mostly stuck to imparting some of the learnings they had acquired over the past many years of being in the investment business.

The first one to heed to Bhaav (price) Bhagwaan (God) hi rahega philosophy was the PMS fund manager Basant Maheshwari. Because like all of us, even he is astonished by the mystery market rally. At one point, Maheshwari does not hide his surprise, and exclaims “Kya ho raha hai? (what's happening?)” when Nifty rose rise to the 10,800 level.

What lessons on risk management couldn’t teach many, the year 2020 will. This is what iThought co-founder Shyam Sekhar feels. “The choice is either to learn it on time, or to learn it through an extended phase of regret,” Sekhar tweeted.

Value investor Nooresh Merani has brought an interesting fact to light. Amid all the noise over retail investors driving stocks, Moorani shared a table that goes on to show that direct equity held by retail investors is not even 10 per cent.

Aveek Mitra, Investor and Founder of Aveksat Financial Advisory, said all those who entered the market during the lockdown might confuse between being lucky and genius. He forewarns that high confidence with little experience in market can be risky.

Sekhar's tweet about having a stomach for long years of underperformance in stock market just adds on to the discussion. He says even a 300-bagger can underperform for many years. Sekhar’s giveaway: Linearity and equity investing are never meant to tango. Don’t expect equity to behave like bank FDs.

Helios Capital founder Samir Arora says the idea that only 15-20 companies are worth investing in is WRONG. Yes, you read it right. He has shown you the math too. Plus, Arora says legendary investor Warren Buffett's biggest mistake is to try and find one big investment for his billions. Here's why!

Also, don't let the market rise fool you, especially the newbies. The past three months' performance should not be passed off as rationality. Here's a look at what a five-year performance looks like. No wonder seasoned investors believe it might come crashing down anytime soon.

Lastly, it might just be a good time to book profits in the largecaps, at least that’s what independent market expert Sandip Sabharwal is saying.