‘Topshe’ Siddhartha Chatterjee shares investment tips and stock ideas

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In 1974, when Siddhartha Chatterjee played the role of Topshe in Satyajit Ray’s Sonar Kella, it instantly became one of the most loved and memorable characters.

But who would have thought that the twinkle-eyed teenager would go on to become a chartered accountant and not pursue a career in movies. Currently, a renowned financial expert, he spoke to Money9 on the fundamentals of stock market investing.

“You have to understand the investment process and the theme under which you are making your investment planning. Automatically, whether the numbers happen or not your wealth is going to create a record” he told Money9.

Chatterjee said the right stocks are the big brands that have given consistent returns over the years.

“Companies with a brand have the pricing power. The top-line is insured because of brands like Gillette or Asian paints. They have the brand to dictate the price. So if they can dictate price, automatically the top line goes up,” he said.

On figuring out ways to understand the technical aspects, he said analysing the financials of a company is a good indicator.

“Not everyone will be able to understand a balance sheet or a profit-loss account, but they can understand the growth in sales by scribbling down the sales figure for the last five years, and then can use a calculator to find out how the growth rate has been,” Chatterjee said.

Talking about technical analysis, he said it projects the price behaviour of stocks.

“For traders, the technical analysis provides various trading ideas, where & when to enter & exit the market. Once he (trader) gets the understanding of analysis, he can understand the rhythm and the movement pattern of stocks,” Chatterjee said.