Investment Faqs with Parimal Ade (Investment Satsang-22)

• First thing is to know is what is the company working into.
• If the business is understood then there should not be a problem.
• Technical Analysis is only suitable for the individual eyeing to become a full-time trader.

• This is the best thing that is been done.
• The cash has limited upside. It is very difficult to hide the cash after a certain percentage.
• Paying taxes and creating white income has immense growth potential.

• Tata Elxsi is having a very long-term journey.
• These are small stocks compared to the potential they have.
• This is the sector that is going to grow like anything.
• These are the companies who are behind the innovations.
• There could be chances that automobile companies will not do that well as compared to these companies. These companies are going to be game-changers.
• The stock should be sold when the earning visibility and growth visibility are not good then there should be an exit from that stock.
• Until and unless you don’t believe in that business one should not invest.

• People should do behavior management.
• It is difficult when you will become a trader from an investor.
• Need to follow the financial planning process. Need to do the investment as per the financial goals.
• The people who have taken exit and want to reinvest for them can reinvest, and if there is a good amount of saving. Then that saving should be invested by doing the SIP.
• It was always said that the market allows exiting 3 years before the financial goals.

• There is a mood for institutional investors
• This has taken the PE levels of chemical companies upside that is been seen at the current levels.
• The special chemical sectors need to follow the quantitative analysis.
• Not able to analyze these companies for more than 5 years.
• Don’t know what the government is going to take in terms of environmental policies.
• Currently, there is a lot of momentum and interest in this sector

• There are unprecedented inflows.
• If interest rates are growing, this thing will happen when QE tapering will happen.
• This will happen when the federal reservers inflow will get reduced and then stopped, then there are high chances of federal reserves to start withdrawing the money.
• This will happen when the federal reserve feels that the US economy is a strong state and can see a comfortable inflation range.
• At that time they will start increasing the interest rates.
• We have seen in 2003 to 2008 the federal reserve was increasing the interest rate still the markets were doing well, because of the global growth in the economy.
• The aggressive rate hike will happen when they are comfortable with this growth rate.
• Currently, the federal reserve percent is around 0% to 0.25% but still, 10-year G-Sec is trading in between 1.3% to 1.4%.
• Markets have already factored in the interest rate because the G-Sec yield has also gone down 0.33%

• This is because of digitalization which was going to happen but the pace of digitalization has increased in the last 1 to 1.5 yrs.
• That’s why most of the sector’s long-term returns have been preponed and have been rerated.
• Once they normalize the guidances the It sector will be also normalized.
• Then there are chances of sluggishness. This doesn’t mean you should exit from the IT sector.
• Need to stay invested which are comfortable from a valuation point of view.

• It is an interesting company.
• It is doing good in the emerging sector.
• It is having a typical tech thought process.
• It is interesting if this field is understood properly.
• These companies are not typical balance sheet companies but these are P&L companies.
• Their expenses come in P&L that’s why we see bigger losses. They can turn positive anytime they want to.
• Initially, they are acquiring assets which means how they engage their subscribers