Current Market Upheveal...............

Last 2 weeks have been terrible for equity investors globally. The markets have crashed from the peak by almost 10 - 15% across major global indices. I am not going to suggest what an investor should do in this situation as this is a personal decision every investor should make based on the holdings in his portfolio, his time period for holding each investment and his ability to withstand risk. As Warren Buffett says

"Unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market"

I don't know what is going to happen tomorrow or even after 3 months in the market. I am not a macro guy. I think it is futile to predict the direction of Sensex or Nifty on a daily or weekly basis. However I try to focus very sharply on the companies I intend to buy. My holding period is generally 3 years so I am not worried about daily fluctuations in the market. I try to understand the business of a company and make a judgement based on my research and whatever limited business acumen I have.

While it is sad that many retail investors might have lost lot of their savings in this market crash; I sincerely hope they understand that stock market should not be treated as a casino where they can gamble on a daily basis.

On a side note..........for all those readers who read this blog regularly I want to add that in the recent crash I have added to my position of ANG Auto and Gateway Distriparks Ltd.

Regards,
Bargain Hunter