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Adani Group stocks: Will averaging out work for retail investors?

Adani Group stocks: Will averaging out work for retail investors?
Adani Group stocks: Will averaging out work for retail investors?
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Synopsis

Retail investors often mistake sunk cost fallacy for a value buy. Not every stock that corrects is an opportunity to buy the dip. Historically, not many companies have managed to revert to peak valuations after a sudden crash -- nearly 82% companies never came back to their all-time highs. Recently, Adani stocks have fallen over 50%. What should retail investors do?

Roy D’Souza (name changed) took a big bet in August 2021 on Adani Total Gas at INR913 apiece. He is in his 20s and in a position to take higher risk in the stock market. Till January 24, 2023, D’Souza’s investment had a notional gain of 4x to INR4,000 a share. But in the past four weeks, after the Hindenburg report, most of his gains have eroded and his investments are already in the red. “The Adani stock is falling in front of my eyes, but I
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The Economic Times