Updated: Dec 24, 2021
Before I start, let me share a story with you I watch every Thursday- Outside my society where I live in New Delhi, every Thursday a small marketplace is being arranged by small vendors where they sell fruits, vegetables, and other households items. The market starts at 4 pm and till 11 pm. But we visit the market at approx. 9:30 pm when the prices of vegetables are at half the rate that it was being sold earlier at 4 pm. At 10 pm and once a vendor started breaking his price, soon all the vendors start quoting either the same price or below that. This is the time when we enter the market to buy our groceries. But we are not alone waiting to buy at that price. A different crowd enters the market at that time to buy the same vegetables at half the rate it was selling before. And we are all value buyers where we buy those same vegetables at half the price it was sold before. Of course, after a while when all the good vegetables are being bought, then remaining low-quality produce is sold at ¼ the price of the original price or even less.
But ironically when I look at people in the capital Market they fear to buy, as the price falls but at time same time they were buying the same shares earlier when the price was high. Have the fundamentals changed in a span of a week? Well, the answer is no.
Instead of being scared, you should be greedier ‘coz now you are getting the same value at a lower price. Isn’t it awesome? Of course, you should be more careful and thorough with your analysis ‘coz If the prices have fallen very much it may be the case as narrated in the above story, “where low-quality produce is being sold at 25% of the value of its original price”.
Until next time,
The Humane Opportunist.