Kenneth Andrade of IDFC Mutual Fund has a successful track record of delivering market-beating returns. In his latest interview to ETNow, Kenneth Andrade anticipates that investors are feeling jittery about buying stocks as the Nifty & Sensex are up 30% on an annualized basis. He pointed out that the economy is probably on the way to recovery and that earnings will also increase.
Kenneth Andrade reminded that the opportunities for Indian companies is extremely high and that it is a good time to go for stock picking as there is a lot of beta in the market.
Kenneth also offered valuable advice that investors should not obsess over the numerator (i.e. the price of the stock) but should pay attention to the denominator (i.e. the Earnings per share (EPS)). He added that the EPS is more predictable and if you get that right, the price of the stock would increase to catch up with the earnings sooner or later.