It has been a very long time that I have posted or you all had access to our blog, the reason was we were upgrading our blog so that it can help you access my post conveniently.

We are back again to help you build and manage your portfolio. in the last 18 months we invested around 15 Indian businesses for our clients and today our investments are sitting up at 60% ( As of 31st July 2014). For the same time the broader NSE 500 index had given a return of 35%.

Talking about the returns, I was going through one of the post on the Economic times of India’s website that how PPF funds have beaten the Sensex returns over 20 years. Sensex has given an annualised returns of 9.15% every year and PPF had given 10.46%.

The author of the blog emphasized two things, that it doesn’t make sense to be a long term investor in the equities and the timing in the market is very critical.

We at Valueoperations have always advocate investors to go long and don’t try to time the market.

Sensex is made up of good businesses as well as bad businesses. If you avoid bad businesses and stick to the good businesses than there is no one who can stop you to gain superior returns. There are many examples where if you stick with the businesses where their fundamentals have not changed then you reap superior returns. To share with you our picks in the last two years, Amar Raja Batteries, Mindtree, Swaraj Engines and HCL Tech are the few who are sitting at more than 150% returns.

There is a saying that, ‘Time in the market is more important than the timing to enter and exit’. Few people suggest timing in the market is the most important. For me, time in the market is only on your side if you had invested in the good quality business or else it is the worst nightmare that I will pray none of the investor has to go through it.

As a professional investor, let me disclose you that it is very hard to time the market. There are many prophets so called experts in the market who would suggest and try to convince you that they know where the market is heading. But I am still waiting to meet someone who can challenge me that they can time the market and have achieved superior returns in the long run.

Instead of trying to time the market, my advice will be to buy stock when they are trading cheap and sell them when they are trading at extremely expensive valuations.

Your thoughts on the above subject are most welcomed.

Please find the blog of Economic times over here.