Porinju Veliyath is a master of investor psychology. He knows the investors’ temperament very well. He knows that if left alone, investors tend to lose interest in stocks and slink into their shell.
So, it is necessary to keep prodding investors from time to time to keep them awake and interested in stocks.
Porinju’s strategy is to periodically feed investors tit-bits about great success stories and how they could have made a great fortune if they had bought one stock or the other.
A few days ago, Porinju referred to Geojit which he had bought at a single digit price 16 years ago. “Geojit paid Rs. 70/share dividend this year” Porinju exclaimed to drive home the virtues of long-term investing and how the dividend itself is several times the purchase price of the stock.
He also tantalized investors by referring to how Shreyas Shipping had surged from a low of Rs. 17 to a historic high of Rs. 617 in a short period of 15 months. The “Q4 NP 36 Cr was somewhat predictable with simple analysis & industry insights” he emphasized.
Porinju used the same modus operandi by referring to the surge that Dish TV showed. The “Q4 performance was just predictable, if you use publicly available information and common sense!” Porinju exclaimed so as to drive home the point that finding winning stocks is not difficult and is actually quite easy.
Today, Porinju sent yet another buy call:
Nifty currently at around 8300 seems to be the bottom for the market, going forward – This week looks like an opportunity to buy your stocks
— Porinju Veliyath (@porinju) May 27, 2015
(Nifty currently at around 8300 seems to be the bottom for the market, going forward – This week looks like an opportunity to buy your stocks)
It is notable that the chorus amongst all the savvy investors is that the time is ripe to buy stocks. A few days ago, I distilled the wisdom of noted market experts on what investors should do (see If You Buy Stocks When FIIs Are Selling You Will Make A Fortune: Experts).
Ridham Desai of Morgan Stanley declared that he is “steadfastly bullish” and that it is a “super opportunity for people to buy stocks”.
Nilesh Shah of Kotak AMC was also plain in his advice. “One should not lose this opportunity” he said. Nimesh Shah of ICICI MF echoed the same advice.
Basant Maheshwari also offered the same advice in his recent interview to Bloomberg. He stated that he did not expect markets to correct a lot in the foreseeable future and that there is little downside risk if investors enter at the current juncture.
Now, whether investors will pay heed to this sensible advice and buy top-quality stocks requires to be seen.
How can we buy shreyans shipping at this level??
Stock was just 17 rs last 15 month before.
Now u will sell and we are buying….
What stopped you from buying @ 17 when he urged all and sundry to do so. You can also go for NIIT after due diligence, which he is quite bullish on from a 3- 4 year perspective. Then there is kopran, tata global beverages etc etc….
apurva, you are missing the point here. What Porinju tries to convey here is that if we buy quality stocks and hold it, it will definitely reward you in the long term. He did not ask you to buy Shreys Shipping now. I think you are a kind of person who will see only number 1 in the number 100, you will not see that two zeroes are added to the number 1 i guess.