Rule #6 Pitfalls – To be a good investor, do things differently

To paraphrase a popular saying, “If you do the same thing as everyone else, you should not expect different results”.

For an investor this means, you have to invest differently, in order to get superior results. At JainMatrix Investments, we take a counter-cyclical approach to get superior results.

  1. When Covid infection struck in March 2020, just like everyone else, we were clueless on the new infection, its impact on health, daily life and the economy. The 40% fall in markets emphasized the panic among shareholders.
    • However by following the news reports, we formed an opinion on the impact, and reported
    • March 2020 – https://jainmatrix.com/2020/03/
    • May 2020 – https://jainmatrix.com/2020/05/
    • By May-June, we had decided that the impact will not be so severe, and investors need to return. Investments made in the next few months did very smartly over the next 1 year
  2. When demonetization was undertaken in 2016, it surprised everyone, and investors too reacted negatively. This banking event however was understood by us as a short term cash shortage. Thus we felt the market fall will unwind once enough notes were printed.
  3. In the stock markets Knowledge is Power, and investing is easier with this Knowledge. Going counter cyclical has been the method we follow when we are convinced of the situation. It may be natural to panic in such situations as an investor, but if we can overcome this and instead treat it as an opportunity to BUY at low valuations, we will benefit.
  4. Both these above events were market – wide, and our stand was successful. However sometimes there can be company specific events too, and it may be profitable to invest in a troubled firm, if one is confident that this is a short term event, likely to reverse soon.
  5. However, it may be high risk for individual investors to take such investment decisions.

Here’s where JainMatrix Investments, as a SEBI registered Research Analyst firm can help. Sign up for our services to help in your wealth building journey. To find out more reach out to us on

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Regards, Punit Jain

DISCLAIMER

This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. This is a marketing collateral. The securities quoted here, if any, are for illustration only and are not recommendatory. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an Investment Advisor. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Punit Jain is a registered Research Analyst under SEBI (Research Analysts) Regulations, 2014. Registration granted by SEBI, and certification from NISM in no way guarantee performance of the RA or provide any assurance of returns to investors. JM has been publishing equity research reports since Nov 2012. Any questions should be directed to the director of JainMatrix Investments at punit.jain@jainmatrix.com. Name of the RA as registered with SEBI – Punit Jain, SEBI Registration No. INH200002747.

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