Aha, you’re asking if the age-old style of Sachin Tendulkar, the “God of Cricket,” still works in the era of aggressive T20 cricket? Indeed, it does! Value investing in the Indian stock market is much like Sachin’s classic cricketing style – patient, strategic, and driven by intrinsic value.
Value investing is about picking stocks that appear to be trading for less than their intrinsic or book value. It’s about having the keen eye of a seasoned batsman who can judge the ball well.
- Steady Performance: Value stocks may not always give rapid-fire returns, but like Sachin’s steady batting, they perform consistently over time.
- Safety Margin: Just as a good batsman leaves certain tricky balls, value investing offers a safety margin. This can help protect the downside during volatile markets.
- Patience: Value investing requires patience, much like waiting for the right ball to hit. This approach might test your nerves, but it often pays off in the long run. Take the example of ITC stock which slept for years before it picked up gain.
Does it work? Well, Indian maestros like Rakesh Jhunjhunwala and Radhakishan Damani have shown us that it does! They’ve built their fortunes playing the long game, sticking to value investing principles.
Does this mean other strategies dont work? Of course not, every strategy like growth investing can have a place in once portfolio. A diversified portfolio always helps compound wealth in the long run.
To Warren Buffett (on value investing) when he said, “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” So, if you’re looking to emulate Sachin’s timeless approach in the world of investing, value investing could be your cup of tea.
