Pritam Deuskar - Equity Investors - 4 Biggest Mistakes To Avoid

PRITAM DEUSKAR - EQUITY INVESTORS -
4 BIGGEST MISTAKES TO AVOID

Pritam Deuskar - Equity investors buy stock in a company with the expectation that it will
appreciate in value. In a volatile market, equity investing allows investors to profit handsomely.
Though profits are generated more quickly, the risk factor is also quite high.

According to Wealthyvia’s founder Pritam Deuskar, life is full of ifs and buts. Nobody makes
bad decisions on purpose in life. Only when the decision is made does it appear to be correct
and profitable. For an equity investor, every mistake is an opportunity to learn and it is tution
fees of losses. Someone correctly stated that the biggest mistake in life is not making a
mistake. It brings your life's learning curve to a halt.

Equity Investors - 4 Biggest Mistakes To Avoid

Cheap valuations does not mean safety

Many times stocks are at lower PE ratio or low price to book
or low ev/ebitda for a reason. It can be management
pedigree issue or corporate governance or commoditised
segment or too many alternatives cheaper products or ways
available. Companies getting disrupted by other new
technologies can also have low valuations. Many value
traps can have low valuations. Wealth from Market can be
made when future growth is high and sustainable.

Selling a stock early that is working well

With stocks we should have an employee / employer
relationship. If performing well , reward with more
allocation. If not performing, remove allocation. It's all
about cutting the weeds and watering flowers. This is
what Peter Lynch described. Also start with smaller
allocation and build it higher over a period of time. Exit
though painful to accept loss. Moving on is always a
better option. It's all about the time resource that you
have and the effectiveness of a portfolio working for you
increasing your money.

Buying the most popular hot stock!

According to Pritam Deuskar, if stock is getting discussed everywhere and analysts of the street
know and boast about the company more than promoters themselves, its time to pause. Fancy
of markets favor only for some time. Catching a high speed Running train often meets with
accidents. It is then late to realise that growth is not coming and one entered a wrong valuation.

Not understanding cyclical part of industry and
markets

According to Pritam Deuskar, market returns are made
when business cycle and market cycle coincide. Return
can get hampered by tailwinds coming for a sector ,
hurdles coming for stock market up move or business
unable to generate growth. All three have to be in a
symphony for stock ideas to work wonderfully!

About Pritam Deuskar

Pritam Deuskar is a SEBI registered research analyst. He has spent many years working in
stock market research and business analysis. He previously worked for well-known portfolio
management firms and PMS firms. His views, interviews, and articles have appeared in all
major financial newspapers and TV channels, including CNN, CNN Bazar, Moneycontrol,
Economic Times, and Business Standard. Pritam Deuskar is well-known for identifying small
and mid-cap multibagger companies at an early stage. He has worked with both private and
public clients. If you require additional information, please visit wealthyvia.