I am often seen as a critic of media and sell-side analysts. they promote what’s infancy and demote what’s falling off the cliff no, they don’t have any foresight, they rationalize what could have led to the outcome. if stock is doing good, they write the management is fabulous, if it’s doing bad the management lacks the ability or even never had any ability.
Their opinion on every small event rust our brains and influence our decision-making. decision making should be simple, buy low and sell high. but when it’s low they give 50 reasons why not to buy. arre bhai already cheap hai, kya hi bura hoga? when it’s expensive they write 10 reasons to buy. if it’s expensive what’s left for me?
The best time to invest is when it’s not in the news or it’s there for temporary pressure in business. (corp misgovernance should be avoided in good or bad times)
The media often gets paid to promote some companies. don’t fall for that trap. check companies’ rasing, debt, and margins vs industry rose, debt, and margins.
Analysts work very closely with promoters, particularly small caps. brokerage head might be drinking together. i know few analysts who received 10L for giving buy on a small cap company. It’s a shady world out there. be wary of what they recommend. it’s better to buy established cos rather than spotting the next multibagger stock which is risky. Leave that job to smart ppl like damani. you don’t need to mess around if you’re employed in some other field and have a basic need of growing money at above inflation rates.
I have been also skeptical of recent advisors who started their shop in the last 3-4 y and recommend hidden gems. bhai, 2-3 saal mein tune kya seekh liya? so many masterclass investors go wrong in small caps, why recommend a portfolio full of small caps? just 1 bull market makes them feel “Apun hi Bhagwan hai.” hence I advise people to go to such advisors who stick to good quality business because equity investing is not just about bull markets. treacherous markets are yet to start. it’s a long journey. they are hell boring. 2-3-4 years of no returns or negative returns. in those times to chug along you need the support of blue chips. (you may punt in select small-caps but try to find established cos within small caps too)
I personally follow the news but for fun and tweet. not to act. they need sensation, I keep sensation in Twitter app, not in the brokerage app.
I read brokerage reports just to understand the business better. I have never bought on brokerage buy or sell. rather I have sold on their buys.
Don’t exhaust yourself. don’t read every news and every report. read your favorite business only. Hire an advisor to invest in PMS, Mutual funds, Bonds, and ETFs and manage 60% through them. rest 40% buy your favorites. the loss will happen along the way but don’t stop at losses like you don’t stop at winners