What will be next 10x. or 100 x multibaggers stocks

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by kharb, Sep 14, 2015.

  1. Sachin pathak

    Sachin pathak Active Member

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    Kharb, dont muddle up between multibaggers and fundamentally good companies at a point in time expected to give good returns over the next few years.

    Second, all you say now is in hindsight. Back then in time when you investec you did not know what the future of MRF or LT or others named would be or what kind of multiple time returns they would provide. Nor did the term 'multibagger' exist then. And nor was your investment philosophy 'hitting multibagger jackpot' type. The company named were fundamentally good companies which have provided the average stockmarket returns of arnd 20% returns....

    Multibaggers is a different category. These beat the markets manytime over. Its not the usual 20% CAGR types...

    You want multibaggers - buy inherently very strong companies facing an event driven crisis which is episodic and will not last long. An example here would be : citibank when it touched 97cents a few years ago and quotes USD48 today.
     
  2. Sachin pathak

    Sachin pathak Active Member

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    Want a possible multibagger : volkswagen ag. See my other thread. I am really hoping that the scrip falls further and i will surely buy into this very risky but tempting opportunity.

    But this is not for the weak hearts and cant stomach losses!!!!
     
  3. SUNNY

    SUNNY Member

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    I list some of the well known companies which are still languishing if you have invested since 2008;
    Reliance industries your gain today will be 27%
    BHEL your loss today will be 22%
    NMDC your loss today 60%
    TATA POWER your loss today 20%
    Reliance communication your loss today 70%
    and so on...
    so dear new investor and retail investor do not get trap in so called blue chips stocks of today dreaming to make big bugs in 5-7 years
     
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  4. Sachin pathak

    Sachin pathak Active Member

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    That indeed is the unfortunate reality. In the pursuit of fast money (multibaggers) its only the small time investors like us and who are found on such blogging sites (for the big manupilators dont need to be here) loose their hard earned money
     
  5. Sachin pathak

    Sachin pathak Active Member

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    Sunny, the problem with you providing a list is that somebody will produce another list with names which have provided 100%+ returns.

    My comment on the list is : never get into a much hyped sector promoted by non sincere government types - Telecom and power currently languish because of this. But both these should rise over time. Telecom on the back of consolidation and pricing power and power with the current sincere PM and his unflinching focus on power.

    Reliance is timing.....poor return on capital given that the company is in a massive investment cycle. Fair chance of a 100%+ as investments start bearing results

    The fundamental guiding principle should be - invest in fundamentally good company with committed professional management 2) remember nothing is permanent. A blue chip today is no guarantee that it will always be a bluechip 3) never never married to a stock. If you find valuations stretched book profits and if the company starts facing headwinds review your investment and assess whats the action to be taken 4) you will always make losses. Nobody only makes money always 5) do not invest with a 'hitting a multibagger jackpot' objective
     
  6. SUNNY

    SUNNY Member

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    my list is to aware retail investors that even blue chip stocks will not fetch good returns as suggesting by so called stock gurus.
     
  7. Sachin pathak

    Sachin pathak Active Member

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    Covered in fundamental investing priciples which i listed above
     
  8. kharb

    kharb Well-Known Member

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    There is no confusion, only Quality Businesses give multifold return.If any body think Good QUALITY fundamentally strong growing profitable businesses and Multibaggers are different,I have no advice or argument for such learned personalties.Namaskar and Thanks .
     
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  9. SUNNY

    SUNNY Member

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    when u list stock with examples it has more impact
     
  10. kharb

    kharb Well-Known Member

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    . I had expressed my views earlier also in this site many times, pl stay away from PSU,metals ,commodities, airlines ,stagnating and poor management .All your examples falls in this.Those who still invest in these sectors are more experts ,so no advice to them.
     
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  11. Sachin pathak

    Sachin pathak Active Member

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    Kharb,

    Many years ago i bought into the issue of kesar petroproducts. A junk/fraud company. Dont even know where the physical shares are today but i know i bought a substantial quantity because i got an allotment out of a quota. Worked then for a bank which was the merchant banker to their issue.

    I still think its a junk company but find the stock currently at 438/- and 52 week low 26/-

    What a multibagger i ended up investing in......... But leaves me seriously wondering if fundamentally good company = multibagger still valid

    :)
     
  12. SUNNY

    SUNNY Member

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    This is what you are saying this year or last year, but in 2008 these stocks were hot blue chips, my intention is to never to quote a stock as an example for present and future investments.
    Stock market is very risky business...not suitable for retail investors

     
  13. Sachin pathak

    Sachin pathak Active Member

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    This is what is a vibrant democracy....people having and voicing their views. The fault is not of people voicing its largely of the novices who blindly follow.

    Metals and Commodities : is entering a phase of offering huge upside in the future. The window has just opening ....point is how much an individual will wait in anticipation of the stocks prices to still fall
     
  14. SUNNY

    SUNNY Member

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    From last two years i am listening metal will bounce back but till now NO, i do not believe it will bounce back in next 2-3 years. I am gambling on real estate companies.
     
  15. Sachin pathak

    Sachin pathak Active Member

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    Oh yes they will. Point is metals had never hit the lows two years ago.There is more certainity on metals than real estate. Even at these levels there is further downside. Therefore my comment - the window is just opening up..... And so metals should be on smart investors stockwatch list

    I still cant get a friends advice out of my mind - he told me buy SAIL when it went below par in the last downtrend. He had bought 200k shares and he exited out at an avg 140/-

    I think a repeat will happen....ofcourse you wont get SAIL now below par. But something similar will play out again. In my view the initial green shoots will appear in about 2-3 times so its a 5-6 years play.

    I am waiting to enter hindalco and tata steel. Simply because they have the trackrecord of weathering earlier bad times and coming through ok.
     
  16. SUNNY

    SUNNY Member

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    I wish all the best
     
  17. shakti khanduri

    shakti khanduri Active Member

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    I am not clear in my mind -How many times is multibagger return & what is the required time frame to be called multibagger results? will anybody educate me on this aspect?
     
  18. shakti khanduri

    shakti khanduri Active Member

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    What has been my many times experiences is -that it comes unexpectedly from ignored areas.
     
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  19. dineshkapoor27

    dineshkapoor27 Active Member

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    There are some really good cash rich stocks that are available at really cheap discounts because of the slowdown in metal prices. I dont deny that the commodities industry is going through a bad phase, but that doesnt mean that people cant accumulate good quality mining and metal related stocks. If you have the guts and the money to keep on accumulating stocks over years at a time, then maybe you can look at options like MOIL, Nalco, NMDC, Coal India etc. These companies have huge upside potential when the commodities cycle will overturn and demand will grow in India. Right now demand is low and commodities are cheaply available. Keep on adding them and reap the benefits cumulatively after 2-3 years.
     
  20. kharb

    kharb Well-Known Member

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    Every time market do well there are heros,both stocks and persons.1991 person was Harsad mehta stocks were Mazda,ACC,Apollo tyre etc.In 2000 it was Ketan parekh ,stocks were DSQ,Himachal tele,Silver line and whole third line IT compnies. In 2007 stocks were infra and persons were ,better you ask banking guyes for their NPA woes.This time stocks are different ,so are the persons.But as has been always, only those Investers will survive, who stick to Fundamentals and Quality.Every time people will say it is different this time.But it is same every time.So I request all small investers to stay away from stocks of poor and average quality,in whch valuations has been stretched ,multiplied , less on fundamentals,but more on herd mentality by follwers of some famous names of this bull market.FII flow are slowing down, as usual first correction is always bought ,and people make some money on bounce back.Second correction smart will come out and average small invester will buy this correction and keep on dancing with out knowing music has stopped.If no bounce back they will panick and than real problem starts.So please stay with quality stocks ,they may also correct but to lesser extent and that will be a buying opportunity of accumulating more. But poor will crack like old heros Mazda,DSQ,silverline,Himachal tele, Global tele,R power, IVRCL,Punj,JP ,Lanco,GMR,King fisher,Suzlon ,Bhushan and list is large.I wish good luck to these componies and permoters as any reversal in their fortunes will help small investers traped there along with banks.Names of companies and persons has been taken just for the reference of losses suffered by small investers and has nothing to do with acts or reasons on part of compnies or persons and situation might have come inspite of their best efforts..STICK WITH QUALITY AND PARTCIPATE IN GROWTH WITHOUT LOSING YOUR SHIRT.
     
    Last edited: Oct 2, 2015
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