Renowned fund manager Siddhartha Bhaiya, who recently passed away, warned that Indian stocks are pricey and moved his money to safer places.
Why He Became Cautious on Indian Equities
He said three things drove his decision:
- Valuations were too high.
- There was a lot of hype around certain stocks and sectors.
- He had concerns about corporate governance.
He also felt that small‑cap stocks in India were trading at a premium, making it hard to find good value.
Where He Saw Better Opportunities
Instead of Indian shares, Bhaiya looked at three areas:
- Defensive sectors in Europe – businesses that tend to hold up in tough times.
- Non‑technology themes in the United States – such as consumer staples and utilities.
- Consumption‑driven stocks in China – companies benefiting from growing domestic demand.
Shift to Gold
In the months before his death, Bhaiya reduced his equity exposure dramatically. By November, about 81.5% of his ₹4,000‑crore fund was invested in gold ETFs.
Track Record Highlights
He was famous for picking small‑cap multibaggers. Some of his biggest winners were:
- Avanti Feeds – nearly 100‑times return.
- Apar Industries – about 50‑times return.
- Sanghvi Movers – 50‑times return.
- JSL, GAEL, HEG, Finolex Cables, TIIL – each gave around 20‑times returns.
- Other 10‑plus‑times winners included HIL, Garware, CCL Products, Cosmo First, Maithan Alloys, Nilkamal, and Power Mech Projects.
What Retail Investors Can Learn
Even though Bhaiya’s approach was bold, his key lesson is simple: focus on valuation and quality, not on market hype. If stocks feel too expensive, consider safer assets like gold or look for opportunities in other regions.
Disclaimer
Remember, this is just a summary of Bhaiya’s views, not a prediction. Always do your own research before making any investment decisions.