As P-Note holders get greedy, probably retail investors need to get fearful.
Contrary to popular perception, the SEBI's crackdown on P-Note holders has had little impact.
While the assets under management of FIIs has doubled from Rs 3.9 trillion in January 2009 to Rs 6.3 trillion in June 2009, the total value of P-Notes has also doubled from Rs 655 bn to Rs 983 bn in the same period.
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Warren Buffett often says, "Be fearful when others are greedy and greedy when others are fearful". He has lived this statement several times during his career. The latest instance being the recent credit crisis. At the height of the meltdown, Warren Buffett advised investors to buy and he certainly bought himself. Now that there is a chorus from several quarters that we are out of the woods, he is realigning his bets. As per the New York Times, Berkshire Hathaway (Buffett's company) is now selling more stocks than it is buying, and is in fact buying corporate and government debt.
It may be noted that Buffett has become far more vocal with his investment advice than he has ever been. Observers believe it is because he wants the twilight of his career to be as spectacular as the rest of it has been. Reaching a wider audience helps his legacy.
Source: EquityMaster