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Global markets as well as our market have been unsettled in recent times. In the last one month NSE 500 and NIFTY 50 have fallen down by -5.57% and -4.40% (thank God both the indices recovered almost 2.75%).

When market falls, human nature can do odd things to our thought process. In particular, there is a tendency to draw conclusion by recent performance and arrive at the conclusion that we should withdraw capital from the markets after a fall. The rational part of us knows, however, that if a price of the good company is lower than it was a month ago it is likely to be better – rather than a worse – investment (provided it’s a long term prospects are intact).

Pleasingly, our investment process removes some of our emotion from our investment decision, and led us to increase cash holdings ahead of the recent turbulence. While the broad decline in share price caused some pain, it was significantly less than it could otherwise have been.

As prices drop, the same process will see us progressively redeploy that cash back into the market. This may run counter to what our emotions are telling us, but that is exactly what it’s there for.

So what should you be excited about and what should make you nervous?

Every time, myself from value operations team takes an insight, a discovery or a conclusion and fashions it carefully into our blog post www.valueoperations.com . let me remind you, it is not  advice and you must always be aware that we could be, and will be, wrong from time to time.

But overall, the proof is in the pudding and so far, investors in our private fund have benefitted from the combination of rational and highly focused investing process with deep insights into the pulse of various business sectors.

So, what you did when markets were falling? And what pockets you are searching for the opportunities?

Stay tuned to know where we are focussing now…