What they do not tell is Porinju's stock pick also fails

"This Porinju bet rallies 20% in 5 sessions" A news alerts flashes on your mobile phone.

Many small investors give more importance to noise created by some famous people like Porinju than the underneath values. We feel we are left behind in the rally. We create a buy order. That gets cancelled as the stock hits upper circuit. Media gives more hype. Porinju tweets the followers giving the hints. The bloggers like me interpret in our own capacities. Porinju gets a good publicity for his Portfolio Management service. That is what he needs and he gets.


ET Market: News on D S Kulkarni developers hitting new highs after Porinju buys

One fine day you will end up buying at very price believing Porinju and his team's extraordinary work. We never bother to study the stock. We don't even do a google search about the company.

After a day or two, you forgot that you had bought that stock. Even media will forget or they act so. There is no news about this stock. Because they don't tell when Porinju's stock pick fails. Only very few journalists like Sucheta Dalal dare to question such companies.

News articles describing the trouble with D S Kulkarni Developers.

Once the noise settles, Mr Market takes the control. The stock gets the fair value. This is what happened to one such stock now. 


D S Kulkarni Developers chart from Money Control

It is always better to do our own studies before buying the stocks. We don't even know whether Porinju's PMS still holds the stock or sold it when the retail investor started buying it. Small investors should always avoid following such ace stock pickers. They will never tell you when to sell the stock.