Porinju Veliyath is probably the most bullish person you will ever meet. Even when other experts are busy predicting doomsday scenarios, Porinju is making out a case on why the time is ripe to buy stocks.
In an earlier piece, I pointed out how Porinju is trying all the tricks of the trade to entice retail investors to buy stocks when they are available at low valuations.
Porinju is still at it.
On 2nd June, when the Meteorology department made the grim announcement that there would be a deficit in rain fall this year, the Nifty cracked and stocks plunged with deep cuts all over. However, Porinju mocked the forecast by stating “Met dept’s track record is not better than tech analysts! Value investors need not worry; my stocks were mostly steady yesterday”.
Later, when the Nifty slumped below the so-called danger mark of 8000, Porinju tweeted: “Traders staring at 8000 fearfully! I still feel Nifty can meander with the number of my followers soon, unless many of you unfollow me 🙂”. Porinju has a vast following of 8500+ on twitter.
Porinju also blasted large institutional investors like Morgan Stanley, Goldman Sachs, Merrill Lynch etc for slashing the Sensex targets and creating a fear psychosis amongst retail investors. They “lack wisdom and common sense” he thundered and added that “Value investors have nothing to do with Nifty and Sensex”.
Porinju has been practicing what he preaches. In his latest tweet, he lamented that his aggressive buying had depleted his cash reserves:
Extremely bullish on select stocks; have been buying aggressively. balance cash left, is just enough to buy provisions at home for a week!
— Porinju Veliyath (@porinju) June 16, 2015
(Extremely bullish on select stocks; have been buying aggressively. balance cash left, is just enough to buy provisions at home for a week!)
Porinju signed off by referring to a tweet that he posted 21 months ago “5 year-long Discount Sale on Indian Equities about to close – Hurry to avoid last minute rush on mid, small-cap value stocks!”
Interestingly, on that day (12th September 2013), the Nifty was at 5850. Today, it is at 8230. This means that gains of 40% are on the table (at the Index level). Individual stocks are obviously much, much higher.
Will the next 21 months bring in similar jumbo gains as predicted by Porinju? We’ll have to wait and watch!