However, a historical trend has shown a glimpse of market recovering over a period of time despite a prolonged turmoil.
Therefore, it turns out to investment principle of Warren Buffett, where it is emphasised to keep away from the investment portfolio and to stay invested as long as it is appropriately invested for goals.
However, it will be prudent for an investor to re-balance the investment portfolio if the market drop continues to prolong than the threshold.
Given the fact that our Indian market is poised for the bull regime from a long-term perspective which is supported by earnings recovery, and fundamental soundness as seen in the current quarter after a sluggish growth for past 3 years, it facilitates to trade-off Warren Buffett’s theory of value investing.
Therefore, sticking to a basic principle of investment and holding a strong fundamental conviction, the Indian investor has a larger propensity to create an overwhelming wealth in millions to billions from equity market despite a short-term turmoil.
It narrow downs to screening a quality company despite facing a downtrend but has the edge to deliver multi-fold returns over a period of time which comes from a humble strategy like Buffett.
And more importantly, every short-term consolidation can be used as buying opportunity which also brings down the average cost of investment and thus munificent profit margin at the hand of the investor.