October 13, 2017

Ridham Desai Morgan Stanley @ Morningstar Conference in Mumbai... excellent read

Some take aways:

  • We have 40 years of Sensex history and 100 has become 32000 – what more do you want?
  • We have had 4 bull runs…1979 to 1985, 1988-1992, 2003-2007, 2008-2017
  • the 2008-2017 current bull run is the slowest, most boring bull run. Not as sharp as the other bull runs…
  • He said the reason why people get good returns in equity is that during the deep draw downs you need to keep silent and quiet.
  • People say ‘market is driven by Liquidity’…
  • Ridham said “for every seller there is a buyer” – so money never comes into the market or leaves the market.
  • he said force of the buy or force of the sell – bid and offer – decides whether it is a buy driven market or a sell driven market (this is awesome read it again)
  • Valuation: If earnings are low, PE will look high (again awesome). When Earnings go high, PE will look low. Once RD says this, it looks obvious, but not so intuitive.

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