Recently bought SAIL stock for the first time. Also, bought more shares of BHEL and Shipping Corp. A quick rundown of the thought process:
4. Is cash still the king? Is it really a good idea to park all your savings in bank fixed deposits? Your capital is unlikely to evaporate but it will not grow either. Is it not a better idea to own companies instead?
You could buy a broad basket of prominent Indian stocks, i.e. an index. But if you are okay with doing some homework, why not stuff your basket with only the truly attractive ones?
3. Scared or excited? Should you wait for a further decline in the stock prices of SAIL, BHEL and Shipping Corp? They already are at multi-year lows.
If their prices fell by another 50%, would you be scared or excited?
2. Will they curl up and die? Will India’s largest steel company, its largest maker of power equipment and its largest shipping company just shrivel up and disappear from the scene?
Or, is it likely that they will continue to remain key players in vital industries?
1. Are the heavens really falling? The future prospects of SAIL, BHEL and Shipping Corp are bad in the short-term. But are they really all that bad even in the long-term? Is India really not going to need more steel, power or shipping of crude oil and dry cargo in the coming years?
Indian stock markets get spooked by short-term worries. As value investors, we must learn to focus on the long-term.