Veteran Investor Shares Timeless Principles for Navigating Volatile Markets

As the markets continue to be swept up by IPO frenzy, AI buzz, and sentiment swings, Nitin Bhasin, Head of Institutional Equities at Ambit Capital, stresses that the fundamentals of investing remain unchanged. Bhasin, who has over three decades of experience in the equities market, believes that while technology and trends may reshape the landscape, the golden thumb rules of valuation discipline, behavioral balance, and long-term thinking continue to stand the test of time.

Bhasin explains that every form of investing is value investing, as investors are ultimately seeking to buy something undervalued. He also emphasizes that all investing requires managing one's own emotions and, if managing others' money, their emotions as well. Concepts like "fear of missing out" (FOMO) have become more prevalent in today's hyper-connected world, and Bhasin advises investors to stay grounded in their philosophy while remaining open to the possibility of being wrong.

To navigate the fast-evolving markets, Bhasin recommends that investors apply the Mosaic Theory, which involves going beyond management calls and expert commentary to observe trends on the ground. For retail investors, this could mean tracking their own consumption patterns or observing changes in their local community. Bhasin also believes that IPOs should be evaluated through the same framework as regular investing, focusing on the quality of management, valuation, and competitive advantage.