Exit TATA Group for Short term

Image by Getty Images via Daylife

It seems TATA’s are in trouble. Their flagships are facing more and more of financial problem. First their Nono Car project, then their Hotel, then their overseas acquisitions for Tata Steel and Tata Motors. This list seems unending. Except Tata Tea, all their ventures are feeling the pain of Global Meltdown. We don’t understand their business acumen of insuring their assets with their own insurance venture.  No doubt that TATA group is one of the most trusted and respected business groups of India. For long-term investments, we prefer TATAs rather than Reliance even if it presents more potential. Only reason for the preceding statement is the integrity of TATAs and peace of mind it gives. But short term outlook for this Group of companies appear to be bleak. We expect around 60% value erosion in next couple of years. Sell now. After 2-3 years you may be presented with more opportunities to enter at lower levels.    

Exit TATA Group. We are very proud to be Indians.

But our patriotism and sentiments should not be allowed to mar our investment decisions.