Skip to main content

"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


Comments

Post a Comment

Popular posts from this blog

No More 'Buy and Hold' – Try 'Buy and Monitor' for Better Investments

Ever wonder how some people consistently make more money in the stock market? It's not magic – it's a mix of paying attention and making smart choices. Let's explore the simple tricks these successful investors use to get better returns than the average. Listen to Insiders: What They Know Matters Successful investors keep an ear out for insider trading updates. Why? Because if someone inside a company is buying or selling their own company's stock, they might know something good or bad is coming. Buybacks & Rights Issues: Company Confidence and Cash In Smart investors like it when companies buy back their own shares or offer existing shareholders the chance to buy more at a discount. It's like the company saying, "Our stock is a good deal!" IPOs & Big Corporate Announcements: Ride the Wave of News Beyond new companies going public (IPOs), successful investors pay attention when companies make Corporate   big announcements. Events like demergers, me...
Post a Comment
Read more

Heart vs. Mind

There is always a conflict between heart and mind. weather in a life partner, career, money spending, investing, etc. your heart is weak to make decisions. heart always follows short-term gratification which is mostly wrong. so here we can discuss the difference between them.       The brain changes continually as a result of our experiences. Experiences produce physical changes in the brain either through new neural connections or through the generation of new neurons. Studies suggest that the brain can change even during the day. This means that the anatomy of the brain varies from individual to individual. Even identical twins with identical genes don't have identical brains. They have had different life experiences. Experiences are the reason that all individuals are unique. There are no individuals with the same upbringing, nutrition, education, social stamping, physical, social and cultural setting. This creates different convictions, habits, values, an...
Post a Comment
Read more

Unveiling the Multi-bagger Myth

In the world of investing, the allure of multi-bagger stocks is undeniable. These stocks have the potential to deliver exceptional returns and create substantial wealth for investors. While conventional wisdom often highlights certain financial metrics as indicators of multi-bagger potential, a deeper understanding reveals that what most people know isn't worth knowing. In this blog, we will challenge the common beliefs surrounding multi-baggers and explore the factors that truly drive their success. 1. Looking Beyond High ROCE/ROE While high Return on Capital Employed (ROCE) and Return on Equity (ROE) are considered important financial indicators, they do not guarantee multi-bagger status. Instead, it is crucial to identify companies that have the ability to consistently improve their ROCE and ROE over time. 2. Rethinking Debt/Equity Ratios Low Debt/Equity ratios are often seen as a positive sign, indicating financial stability. However, merely focusing on reducing debt levels doe...
Post a Comment
Read more