Long & Short of Markets: What are Rakesh Jhunjhunwala’s thumb rules for investing in internet companies?

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While the outlook remains favourable for industrials and old economy stocks, gold is in a bearish phase and inflation moderately high. This is the classic story of an economic boom. Who are the winners of this boom? Read about ‘Big Bull’ Rakesh Jhunjhunwala’s thumb rule while picking internet companies and more in this weekend’s edition of ‘Long & Short of Markets’.

Slow and steady wins the race

Rakesh Jhujhunwala doesn’t believe in discounting a large part of the future into the present even for growth stocks like internet companies. The Big Bull doesn’t like to pay much for companies that have perceived large markets and good positioning in those markets, but have very little or no cash flow. Here is more on RJ’s screening parameter for stocks and what drew him towards the gaming stock Nazara which is coming out with its IPO this week.

Booming industrials: A sign of classic recovery

Morgan Stanley India’s Ridham Desai says that after continuously declining for almost 25 years, the share of manufacturing in GDP is likely to rise for the first time as India is becoming more attractive as a manufacturing destination. Read the full interview here.

Gold losing sheen?

Considered a safe haven asset, gold usually reacts to extreme economic uncertainties, be it hyperinflation or deflation. Amar Ambani of Yes Securities says in ordinary inflationary times, gold does not perform well. Hence, the market veteran argues that the yellow metal is now in a classic bear cycle which will last for a long time. Here’s more on what the expert has to say on gold’s outlook.

PSU lenders building up steam!

Dipan Mehta of Elixir Equities says the June quarter is expected to see a windfall for PSU banks in terms of margins over their private peers. He says, writing back of provisions on the P&L book is one of the reasons for margins to swell. Here’s why Mehta is betting on PSU banks.

Sailing the stormy seas

Just like sailing in rough high seas, it’s best not to go head on into a high tide but to sail in the direction of the tide, it’s better to take a similar approach while riding a volatile regime change in the market. The best way to tackle this volatility is by riding the underperformers. Naveen Kulkarni of Axis Securities provides clarity on how to tackle a regime change in the market with major anecdotes. Read here.

( Originally published on Mar 14, 2021 )

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4 Comments on this Story

Hemant Pisat45 minutes ago

Next year he will sell it with astronomical profits.

jingal indi8 hours ago

Rakeshji please you ensure for Nazara evergreen performance so that it pays good dividend as you ask questions for TaMo Tanishaq and so on where you yourself have invested

Universal Soldiers9 hours ago

Mera Naam ????????


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