“Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful.” -Warren Buffet in his letter to Shareholders, 2004
After the recent panic it has become clear that people are fearful and are not able appreciate the valuation of many shares and dumping in panic, which is creating situation that many stocks are below their book values and making many scrips attractive in long term.
Of course, it cannot be said that market has bottomed up. P/E of NIFTY has reduced significantly at 15, which makes it somewhat inexpensive for long term. But on account of panicked sliding, market may still slide arond 3000/10500.
However, long term investor should buy in small quantity instead of waiting to identify the bottom, which sometime cause to miss the reversal/bottom point. Sometime it happens that while waiting for identifying the bottom and confirmation reversal cause precious opportunities. However, in my experience it is difficult for individual investor to keep close check on the market and therefore should do not worry about missing bottom.
So it is time to do some research and keep eyes open for opportunity.
Few of my favorite scrips trading very attractive prices.
|Name||52 H||52 L
|Compact Disc (India) Ltd||82.8||35.5||25.08||1.56|
|Tata Steel Limited||969.8||338.6||130.51||2.68|
|Bongaigaon Refinery &…||116.8||44.6||15.98||2.93|
|Tourism Finance Corp of India…||55.5||14.25||4.70||3.35|
|Mercator Lines Limited||184.95||48.7||13.71||3.59|
|Parekh Aluminex Ltd||301||90||22.62||4.05|
|SREI Infrastructure Finance…||292||55||13.75||4.20|
|Lakshmi Machine Works Limited||4000||842||194.65||4.36|
|Ballarpur Industries Limited||41.0379||24.3434||5.41||4.76|