Manish Bhandari, Founder and Portfolio Manager of Vallum Capital Advisors highlighted the importance of understanding the concept of time value correction, sharing an example from 2015. He recounted how he invested in the pharmaceutical sector during a bubble, offering valuable insights into the importance of timing in investments.
Bhandari stressed the significance of trusting data over management commentaries. He shared an experience where he invested in a leading rice company despite discrepancies between the data and what the management was saying.
“The very valuable lesson that I learned is that data is something you have to believe, and you have to hold it very carefully and then just exit if the data is not in your favour, irrespective of the management commentaries,” said Bhandari.
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Ayush Mittal, co-founder of Screener. in, who joined the discussion, spoke about the challenges of investing in small and mid-cap companies, emphasizing the importance of discerning what matters and what can be ignored.
Mittal shared a personal experience of investing early in a textile company that initially performed well but later struggled, underscoring the need for caution.
“As an investor, you need to learn how to ignore some of the things, learn how to spot where the numbers go missing, take note of it and not get carried away with all the story building, all the forward-looking things,” he said.
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Viraj Mehta, Founder and CIO at Enigma Investment Managers, reflected on the challenges of evaluating promoters. He expressed regret over underestimating a promoter who overestimated himself, highlighting that many Indian promoters are highly ambitious and growth-driven.
For the entire discussion, watch the accompanying video
(Edited by : Ajay Vaishnav)
