As the focus shifted to emerging markets, foreign portfolio investors (FPI) pumped in a record Rs 62,951 crore in Indian markets in November. In today’s edition of Tweet Buster, market mavens discuss the increasing flow of foreign money into Indian equities, besides sharing tips and strategies on investing.
Record FII inflows
Asking investors to focus on their own goals, Radhika Gupta, MD and CEO of Edelweiss Mutual Fund, said FIIs buy for their own reasons, usually as a part of changes in views on emerging markets, while DIIs might have different reasons to buy or sell.
Don’t get emotional about FII flows. FIIs buy for their own reasons – usually as a part of changes in views on eme… https://t.co/fvUT1Hyhc4
— Radhika Gupta (@iRadhikaGupta) 1606322694000
iThought co-founder Shyam Sekhar echoed similar sentiments by saying that somehow Indian retail investors believe FIIs know more. “When they buy blindly, we buy too. When they sell mindlessly, we get perplexed.
Truth be told. Our priorities are very different from theirs. It is possible to stay away from FIIs. And, yet win.”
Indian retail investors tend to be FII followers.We somehow believe they know more.When they buy blindly, we buy… https://t.co/znhDaVCkmm
— Shyam Sekhar (@shyamsek) 1606274183000
Independent market expert Sandip Sabharwal said he has never seen such frenzied buying by foreign investors in the secondary market.
I have never seen such frenzied buying by Foreign Investors in the secondary markets Not even in 2007 did we see su… https://t.co/1aK7I1lSOr
— sandip sabharwal (@sandipsabharwal) 1606219705000
Microcap investor, author and founder of Micro Cap Club Ian Cassel said you can’t just copy someone else’s investing style. “You can own all the same stocks but your returns in the end will be different. The investing process is very personal,” he said.
If you think you can just copy someone else’s investing style you can’t. You can own all the same stocks but your r… https://t.co/Mc7YKDEBxF
— Ian Cassel (@iancassel) 1606142163000
Dump losers ASAP
Cassel said successful investing is less about being right all the time than it is about identifying when you are wrong quicker.
Successful investing is less about being right all the time than it is about identifying when you are wrong quicker.
— Ian Cassel (@iancassel) 1606527870000
Nothing frees up your mind like dumping a loser in the portfolio.
— Ian Cassel (@iancassel) 1606340300000
When you are sitting on a loser hoping to exit when it becomes less of a loser it will almost always become more of a loser. #investing
— Ian Cassel (@iancassel) 1606130651000
Sekhar warned investors that when markets are seeing a rough high tide, one must ensure a move to safety. “Swimming in high tide is very risky. Even if you survive it, you are only going to be in a low tide. Being naked then is ugly,” he said.
The most important thing during high tide is not to venture into the sea.When markets are seeing a rough high tid… https://t.co/K6kO7N2ri7
— Shyam Sekhar (@shyamsek) 1606446190000
Buy & hold, not forget
Cassel says buy and hold strategy should not be misunderstood for buy and forget. “It is buy and verify (your thesis), and the smaller the company the more often you verify,” he said.
Buy and hold isn’t buy and forget. It is buy and verify (your thesis), and the smaller the company the more often you verify.
— Ian Cassel (@iancassel) 1606255675000