The AGM of Reliance settled one thing. The company’s reign as a market mover has ended. Nobody is going to be compelled to own it. Market leadership has to be established before a bull market begins. At least, the process of crowning a new leader has to begin. One gets the feeling that after the AGM of Reliance, even the diehards would have started their search for a new leader. When a company shows distant growth, it ceases to be seen as a leader. The important thing is for a leader to show sustained growth and high visibility. The era of believing esoteric theories of hidden gas, massive ramp ups and path breaking moves has paused, if not ended. That sums up the state of the market leadership. So, who will fill the void? Is there one company to replace RIL as a market mover? Or, will it be a pack of four or five great companies leading the stock markets? The time is ripe to make this call if you are an India Bull.
Managing anxiety is the most important aspect of investing. The global volatility has definitely raised domestic investors’ anxiety levels. This has only made decision making even more sporadic and difficult. From experience, conviction shown in the most volatile phase pays the best dividends. The trick is to hold one’s own judgement at a time when the world is most judgemental and in complete agreement. How does one stand against the mob? Building conviction is the only way to accomplish this. Conviction doesn’t get built in a day. Also, it may be tough for a lay investor to build the conviction all by himself. A simple approach is to identify fellow investors to exchange views, share anxieties and collectively overcome fear. Choosing the right company is important. Another important thing to do is to identify columnists with a pragmatic bent and to follow them closely. The views of investment thinkers and opinion leaders must also be closely watched. By tracking the mood and working on one’s own anxieties systematically, one can develop the ability to stand up to the crowd. It is time to learn the art, if you aren’t standing up yet.