Blog – Katalyst Wealth

Is this the best time for investing in stocks or making corrections in Portfolio?

June 18, 2019

Dear Sir, When do you think is the best time for investing in stocks? I will give you two scenarios: Scenario #1 – Markets have already appreciated a lot, the valuations are on the higher side, investors and advisors are trumpeting about their gains and past performances, bubbling stock forums, WhatsApp groups, too many IPOs and QIPs happening, good news all around, equity turnover data on the higher side, etc, or Scenario #2 – Stocks are substantially down, valuations on…

[New]: Stock Investment report – A company worth 1000 crore available at dirt cheap valuations of 370 crore

May 27, 2019

Dear Sir, Stock market is peculiar…sometimes it is too exuberant and offers an asset worth Rs 100 at Rs 120-150 and sometimes it becomes too despondent and offers the same asset worth Rs 100 at Rs 40-60. Our returns on investments are therefore determined by when we buy the stock: at 40-50 when the market is depressed or 120-150 when the market is elated. Fortunately for us, the small and mid-cap stocks are in depressed state and a lot of…

Why do investors make the same mistake again and again?

May 8, 2019

Dear Sir, Just look at the below equity turnover data and you will know what I am saying. Source:bseindia.com Every time the markets correct in a big way (2008-09, 2011-12, 2018-19), the investor participation goes down substantially. Frankly, it’s painful to see the investors make the same mistake of entering the market at highs and exiting at lows. In fact, I see the same pattern with some of my friends and relatives who were pursuing me aggressively in 2016, 2017…

Markets have always been cyclical…chose your end wisely

April 9, 2019

Since ages markets have been volatile and have exhibited cyclicality. Most investors end up on the wrong side of the cycle and thereby lose out on the opportunity of wealth creation and even end up losing principal. Below, we have produced a set of numbers which clearly reflects that you can do well in the stock market if you invest during cyclical downturns. Source: moneycontrol.com What does the above indicate? In the above illustration we have taken values of BSE…