Is weak Q3FY15 results in Auto sector telling something?

Swaraj Engines:

Bajaj Auto:

Munjal Auto:

Mahindra and Mahindra:

Maruti:

Barring Maruti aside almost no major company has posted good set of results. Good set of result from Maruti might be because of new launches in recent times.

It seems the market has gone up too much on basis of hope of economic turnaround. If we look at result of Auto sector, this hope fades away. Waiting more time for turnaround may lead to level of despair and sell-offs in stock market may be observed sooner or later. This is better time to prepare for crash and be ready with cash when opportune time comes.

However, we should not read too much from one quarter bad results. But preparing is always better.

BUFFETT WISDOM THAT YOU MAY NOT HAVE HEARD BEFORE

• "Only way to stop a panic in today's times is to have someone say with absolute authority, "I will do whatever it takes to make this right."
• "The next panic will most likely come from a cyber/nuclear/biological or chemical attack on the US. The ability of psychotics, religious fanatics etc. to impact people has tremendously increased since 1945 (atomic bombing of Hiroshima and Nagasaki)"
• "The US will always bounce back. Our system really works, if you have cash during a time of panic, BUY"
• The auto industry has been the one of the most important industries during Buffett's investing career. He has extensive knowledge of auto. Despite that he doesn't feel comfortable buying auto stocks. Instead he chose to buy an auto dealer with 78,000 dealerships across the US. Simply because five years from now, he doesn't know which model will sell but he does know that the auto dealer will sell it. This is the same story in tech, Buffett does not know who the leader will be.
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