Forbes’ latest issue “Wealth wizards: Follow the ‘keep it simple’ policy for investments” makes for inspiring reading. It kindles the hope in our hearts that someday, in the not-so-distant future, we will also be able to emulate these wealth wizards and bask in great riches.
Donald Francis and Ayush Mittal, the co-founders of valuepickr.com, are among the first to be featured in the elite list of wealth wizards.
When you peep into the valuepickr forum to check out the work of these stalwarts, you will be astonished at the amount of effort that is taken while analyzing each stock. The forum has an army of razor-sharp analysts. Nothing escapes their eagle eye. No stone is left unturned. Every little fact about a stock is checked and then double-checked.
The best part is that the discussion is not all theory. Instead, at the end of the analysis, a clear-cut recommendation is given about the stocks that one can invest it, together with a clear explanation of the prospects and the risk factors.
One example of this is the recommendation given in August 2014 to buy Kitek Garments. The advice offered was “ValuePickr CORE Team has come out with following Recommendation for those with a clear 2-3 year holding horizon. Kitex Garments – 23 Aug, 2014 – CMP Rs. 332 – BUY/accumulate on declines.” The rationale for the recommendation was also given in crisp terms: “Visibility is strong. Available at 20x 1yr Forward PE. Fair PE Range 20x-25x”. The risk factors were also set out and a special warning for novice investors was also given.
Well, on the date of the recommendation, the stock was at Rs. 332. Today, just 10 months later, the stock is at Rs. 966. This means that incredible gains of 181% are already on the table.
It is significant to note that Kitex Garments is not an isolated instance of a successful stock pick. The “ValuePickr Public Portfolio”, which is updated from time to time, has several gems in it like Ajanta Pharma. Mayur Uniquoters, Astral Poly Technik, PI Industries, Balkrishna Industries, Atul Auto, Kaveri Seeds, Poly Medicure etc.
It is amazing that a group of amateur investors have managed to identify so many super-duper multibaggers in such a short period of time!
The next in the list of wealth wizards is Ekansh Mittal of Katalyst Wealth.
Ekansh Mittal is very familiar to us. We have already seen how his stellar stock picks like Cera Sanitaryware, Atul Auto, Amara Raja, CARE Ratings, VST Tillers etc have created humungous amount of wealth for his subscribers. Each of these stocks is a top-quality one and have several years of wealth-creation ability in them.
One little known fact is that Ayush Mittal and Ekansh Mittal are cousins. One other little known fact is that both Mittals, Ayush and Ekansh, have been commended for their stock picking skills by Prof. Sanjay Bakshi, the authority on value investing. While the Prof gushed that “Ekansh is a very smart and ethical investor. I enjoy interacting with him and recommend his services”, he added: “@katalystwealth And his cousins @ayushmitt and @faltoo are great stock pickers too. Great gene pool there”.
Several other wealth wizards featured in the magazine are also familiar to us.
Porinju Veliyath, the eternal optimist, was complimented for his stellar stock picks like Geojit Securities and Shreyas Shipping, both of which are mind-blowing multi-baggers. Porinju offered valuable advice to us: “The Indian market is a goldmine if you look beyond Nifty and the fancied stocks. I can clearly see hundreds of multi-baggers, even after the big rally of the last two years. There is a big opportunity if you can identify these positive changes early” he said in an inspiring tone.
Rajiv Khanna a.k.a Dolly Khanna, one of our favourite stock wizards, also made the cut owing to his/ her stellar stock picks. Rajiv Khanna was quoted as saying that he picks stocks based on his personal experiences and using basic parameters of valuation. He also stated that he looks at the growth prospects and the size of the opportunity whilst buying the stock.
The other stalwarts featured in the magazine are Ajit Dayal, Anup Maheshwari, Chetan Parikh, Harsha Upadhyaya, Jinesh Gopani, Johnathan Garner, Madhusudan Kela, Mohnish Pabrai, Neelkanth Mishra, Sanjiv Shah, Shankar Sharma, Sukumar Rajah and Sumeet Nagar.
Forbes emphasized that the common mantra amongst all the wealth wizards is that investors must “keep it simple” and apply “common sense to spot a good business and to buy it at the right price”.