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"What I follow"

"Strategy for Equity


Most important things 

  • Independent mindset
  • Accounting 
  • Business economics 
  • Psychology
  • Financial market history


Three baskets 

1. Special situations.

2. Growth at reasonable valuations (Unable to pay more than 30-40 PE).

3. Cyclical stocks (Short period, 1-2 Years) – the balance sheet is good, but earnings are bad. 


Screening criteria

OPM < OPM 5Year AND  (OPM= Operating profit margins)

Market Capitalization > 500 AND

Debt to equity < 1 AND

Price to Earning < 40 AND

Promoter holding > 50 AND

Capacity expansion 


Valuations 

Think only one thing:- 

Will you get more returns from this script than FD / AAA-rated bond yield?

If the answer is YES go invest, stay patient enough and focus on increasing your capital.



Information overload Problem

  • Shut Twitter, TV, and Social media, Telegram, YouTube Tips

Bottom-up approach but sector Tailwind 


Macro factors – Patience for 3-5 years stay invested.


Risk management 

  • Diversification of 15-20 stocks.
  • Different sectors, regions 
  • Small-mid cap spaces, large caps only when Index down 15-20% from the pick.

Special situations 

  • Open offers, demergers, mergers, buybacks, Right issues 

Portfolio Allocation 

  • If stocks move rapidly and jump allocation in your portfolio in a small period of time then think to cut some profits.
  • Don’t have more than 10% of Allocation.

How knowledge building happening 

  • Brokerage reports 
  • YouTube videos 
  • Books 
  • Valuepickr


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