Thread by @sahil_vi

One of my key learning with yes bank was that if the corporate governance or regulatory compliance is worsening (or perceived to be worsening) it's better for the small investor to get out, evaluate, then decide.
Not investment advice but I would have sold RBL, HGS, Hikal.0

Unless you have the md or ceo on speed dial, it's very hard for you to know what is going on

If you're right in selling you save 80%.

If you're wrong you lose 20% but live to fight another day.

The ONLY exception I would add is if you have 96% confidence that the event is a non issue.

A very seasoned investor I know of didn't sell RBL because he had done very deep research & is convinced it's a non issue. 🙏🙏
Agar itna research kiya toh alag baat hai.

Purpose is not to point fingers, it's very much possible that these cos have done no wrong & eventually market may realise that, question is whether it's worth taking that risk.

Some of you might also find my position slightly paradoxical wrt my investment in Mirza.

The reason it's not , focus on where the puck is moving, not where it has been. :)

If price discounts nottiness & nottiness reduces I'm happy to buy.

BTW just to be clear I am not forming an opinion on hikal, RBL, HGS. I have studied 2 of those in some depth.

If price of hikal falls 50% I might even decide to invest if I find risk reward favorable AFTER evaluating whether current issue is a big one or not.