Mark Mobius believes crises are the best time to go bargain hunting

Most people would shy away from entering a crisis-laden sector but investment guru Mark Mobius finds crises are actually the best time to go bargain hunting for quality names.

Addressing the tough period NBFCs have gone through recently, while speaking at a recent economic conclave, Mobius explained why he was closely examining the non-banking finance sector for tactical opportunities. He said, “During the subprime crisis in America, everybody thought oh, God it is a crisis, everybody is losing money. But there were some people who were making an incredible amount of money. You have to look at it that way, find the good signs. Every crisis, every move is an opportunity.”

Mobius’s optimism is nothing new. In an October interview, he spoke of how a rising interest rate in the US and dropping currencies in emerging markets had contributed to an opportunity to start buying. “The important thing to remember (however) is that some companies are bargains, tremendous opportunities but some are not. We have to separate the men from the boys.”