This too shall pass
The IL&FS default, the Crude oil prices, the Rupee depreciation, the Trump’s America first approach – all these forces have hit Indian markets and hence your portfolio right now.
Your portfolio has likely wiped-off all gains made in 2018 and most of the gains of 2017 as well.
But remember – The IL&FS default is surely not bigger than the 2008 Lehman Brothers default –
Even though it was bad then, we did move on – from Sensex levels of below 20,000 to above 30,000 now.
I do not know how long this bear market will last – as of now there is no end in sight.
But I do know that this too shall pass.
And ten years from now, this event will seem like a small blip.
So, right now, I am happy to add more good quality stocks.
Here are the stocks that I am buying right now:
- Pidilite – at prices below 1150, I believe it is a good buy -currently it is around 1050
- HDFC Bank – at prices below 2040, I believe it is a good buy -currently it is around 2005
- Gruh Finance – at prices below 315, I believe it is a good buy -currently it is around 305
- Motherson Sumi – at prices below 320, I believe it is a good buy -currently it is quoting 260
- Maruti Suzuki – at prices below 8000, I believe it is a good buy -currently it is quoting at 7350
- Godrej Consumer – at prices below 800, I believe it is a good buy -currently it is quoting 768
- MRF – at prices below 64500, I believe it is a good buy -currently it is quoting 63,600
I am not saying you buy these stocks. There are lots of good companies out there -there is Bajaj finance, Edelweiss, Hero Motors, Eicher –and many more – you do your own research and buy what you believe is going to do well.
But my key message is that THIS TOO SHALL PASS – this is the time to BUY.
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5 Comments
Thanks, Sir for good information again!
what about these stocks: any view?
1. Asian Paint
2. Havells ( impacted by Kerala flood)
3. D-Mart
4. jubilant food
5. Nestle India
6. VIP industries
7. do you like any FMCG stocks at the current price
Rajesh – here are my BUY prices for some of the companies – others I cannot off hand give ass it needs calculations:
Asian Paints – Buy at 1100 or below – it is currently higher than this.
Havells – Buy at 500 or below – currently higher than this
D Mart – it is always been high priced and I cannot calculate the right price –
Jubilant foods – I do not track this great company (unfortunately)
Nestle -needs calculations
VIP Industries – I do not track this company
FMCG companies – Godrej Consumer is a BUY now at current prices; Dabur. ITC andd HUL are not a BUY at current prices
Sir,
Edelweiss had taken a blow along with other NBFC/HFC.. can we enter at current levels @180 and also what would be the entry price for Hero motors , Eicher and Maruti ??
Thanks in advance Sir.
Edelwiess is a great growth story – I haave been fl=ollowing this stock lately – and the price correction makes it very attractive to buy. If you are looking for a 2-3 year period – it is a good stock to buy – the risk is the ILFS default and how much Edelwiess will be impacted – that is something only the company will know and we will not know. Having said that, I believe that there is no moat in this business except the great management and their abiity to steer the company in the areas of future growth every two years. I do believe that this moat is not sustainable in the long run – it is not an easy business and hence I am not investing in this.
can you suggest some long term stock