Source : Moneycontrol.
Samir Arora of Helios Capital said that markets may be near the bottom but it is too early to take a call on trend. According to him, financial sector problems are not over and the sector needs to stabilise first. He sees no serious upside in current environment. He is reluctant to put in fresh money because overall positions are quite low. - Arora feels that the interest level has reduced and any market rally will start with the large caps. On his market strategy, Arora is likely to be more bullish after the new government comes into power next year.
- Currently the problems reside in the financial sector and some of them may spillover into other sectors even in real estate, where it all started. I am not sure of our own government but other government’s response has been quite fast and quick and at the end of the day unless the situation goes so out of control, for which the probability is always low but the impact is very high.
- A serious upside does not exist in the global markets right now because these problems, entangling the problems of Lehman, AIG and others, asset sales and stuff like that would go on for a long time. There will be many people in the US losing jobs. The confidence would be low but the stock market in theory can discount before a problem, like in the past six-nine months.
- The rupee has depreciated about 14-15% year to date and in the last few months about 8-9%. The point is not devaluation although that is one pain; secondly it is complete lack of interest in our country about holding the hands of investors. We look at our investors as if they are some speculators who are only here to make money out of the market.
- Redemptions are happening again. People say that because foreigners are redeeming and therefore currency is depreciating. It could be the other way round as well that foreigners are reducing because the currency is depreciating.
- The real estate boom in India happened so quickly and was basically on paper that it did not reach the end investors. So, for India as a country and as a system it is a big positive that real estate prices are declining in India because we still don’t have that high ownership and it will help the businesses also. It will help the retail, IT business.
- Bullish on Reliance Industries. There the story has got a bit delayed because of the gas production delay by few months here and there. In general for the next two-three years, if India has to become much better than it is today in terms of financial numbers one of the biggest contributors to that will be Reliance.
I started life financially with just USD 100 or only Rs 5000 and my first thought was that when I went to the markets, I had just come from Chartered Accountancy; used to earn Rs 150 a month. So my first concept in life was that I should be financially independent.- I think my greatest patience with the market was in 2001 September to April 2003. That was because I was a lone bull.
- Actually, my best friend and whom I consider my guru, Mr. Radhakrishna Damani - he is from the stock market. Lesson can be learnt from mentors.
- The name of Rakesh’s organisation is actually a combination of his initials and his wife’s initials. So, Rakesh plus Rekha equals RARE Enterprises.
- When I invested in Titan, my thinking was, can Titan become India’s largest specialist retailer? That was the question I asked myself. Will it always occupy a 50-60% share in branded jewellery? Will it always remain a leader in Indian watch industry? Will it enter into other areas of retailing? I asked myself all these questions and the answer I thought was yes.
- When I take a decision there are three-four matters that I consider - opportunity. I am from the investment thought which says nobody can be bigger than the opportunity. Second, I look at the competitive ability. In a capitalist society, you cannot deliver product and make a profit unless you do it in a competitive manner and competitive does not mean the most expensive. Then I look at scalability. Scalability is very important. When I invested in Pantaloons, the biggest idea was can ten stores become five-hundred?
- Then what I look at is valuation. It’s important what you buy. It is more important what price you buy. Somebody bought Hindustan Lever at an Index of 2900 - the price was Rs 320. When the Index was 7000 - the price was Rs 145. You bought Hindustan Lever - best quality company, best pedigree and everything and I made lot of money by buying United Breweries and McDowell’s at a valuation of Rs 200 crore. There was no corporate governance. People told you you’re down the drain. I made five-times my money in two-years.
- Never do any investment after getting tip from anyone without doing extensive research.
- This bull market is based on two factors. One is economic growth of India, which I think is based on factors that are irreversible, whether democracy, whether skills, whether demographics, whether cultural factors. They are irreversible. I think India’s economic growth will always trend upwards. Seminar by RJ.
- The mother of bull runs could start after one-year. It could start after eighteen-months or after six-months. But the next high and the next bull market will be far bigger and have far more participation and far more excesses than we had in the last one-year.
- Rekha Jhunjhunwala, Rakesh Jhunjhunwala’s Wife, says, “I think the market is only first priority for him. His first wife is only market. When he started, he had nothing, absolutely nothing. Everyone used to say, what will you do in stock market? But he wanted to do that only.”
- I have two-three dreams in life. The first dream is that when I die and only truth of life is death, how many people come to my funeral and say, a good man has died. That is the greatest ambition in my life. Second thing is I want to earn the greatest wealth of the world in the most legitimate manner; practical legitimate manner and leave the largest part of it to charity.
- Anyone with patience and strong conviction can earn money in the market.
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