“There is no scope for downtrend in stock market”: Vivek Bajaj on the future of investing in stock market amidst pandemic

Investing in the stock market amidst a global pandemic is something that has created huge doubts in the minds of people, especially those new to the market. What with steep corrections and rapid recovery that we have been witnessing for the past few months, it is difficult to make the right choice. For people concerned about the future of investing in the stock market, Vivek Bajaj, co-founder of StockEdge, India’s leading stock market analysis app, advises on focusing on mainly two important aspects – the circle of competence and the circle of influence.

A circle of competence is something that you can understand and is within your competence. Focussing on products that are within your circle of competence is essential. The next step is to figure out your good circle of influence. From the overwhelming amount of sources such as multiple YouTube Channels, family members, WhatsApp groups, neighbors, etc. people have to pick a limited number of sources, say five which would suit them the best.

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“If you can merge the circle of competence with the circle of influence then you can arrive at those ten stocks which you can comprehend and just focus on those. You will be sorted,” says Mr.Bajaj.

When asked about the practicality of investing in Reliance and Dabur India in the present times, he talks about how they are a good buy provided there is a market correction. He compares Reliance as Google for Indian audiences. Reliance has a market capitalization of around $200-225 billion and is the largest data company in India and is going to be the largest online retail company in India. It has the most amount of data about Indians than any other platform in the world.

“I feel that Reliance’s prices will go up and its stock will always remain expensive. It is always difficult to buy expensive stock because you need a different level of conviction. So whenever the market goes down and if Reliance is available at a lower price one has to keep accumulating Reliance,” he opines.

Similar is the case with Dabur India wherein the demand for ‘Chyawanprash’ and other immunity builders will go up globally. But one has to wait for a market correction since Dabur is slightly more expensive as well.

On an end note, Vivek Bajaj shares his personal views on the stock market.

”Stock market is a very exciting occupation. This is one occupation that has all the industries. If you can establish well in a stock market you have a very good command over all the industries. But obviously you have to find your area of specialization. It is not possible to know everything. It will take two years to figure out how to make money from the stock market. Understanding the stock market needs two years of deep learning before you can actually start making judgments on the market.”

Interview with Mr. Vivek Bajaj