Reasons for why value investing in Indian stocks markets is a MYTH:
1. Govt companies are run with vested interest of involved
politicians thus never give money to investors. in fact government ensures that the
company is first fall sick and then it is sold to private people at throw away
prices. Eg VSNL, BALCO, Hotels sold in Mumbai at throw away prices. Latest being BSNL/MTNL. People can themselves see how systematically they are being made bankrupt later they will be sold at throw away prices.
2. Fundamentals of the company or industry does not matter
reason Corporate Governance (Management: whats that ???) Look at any of the big
groups: Reliance, Adani, Thapars, Modi's or new age infra giants (All from
Andhra and now all are MLA's or MP's). Fundamentals change over night: Latest eg: Gitanjali Gems
3. SEBI is tooth less tiger. What they did about Satyam,
Reliance Power, Kwality dairy (end less list of big shots forget about fly by
night operators)??
Anything about Indian stock market is speculation, value
investing can simply be defined as how good you know an operator and how
reliable is your operator.
Keeping money in bank deposit will not beat the inflation
but will grow. In stock market you will either loose all the money or earn
nothing in net net terms obviously
unless you have great luck or you know the good operators.
You might agree
Regards,
Atul
