the worst stock i ever bought

the stock that made you gone mad.

 

Mine was Britannia. Waited for a couple of years. Did not move.. I got frustrated and sold and switched to Pidilite.. And then the stock went up tremendously.. became a 5-6 bagger in short time.

 

dear @Parin Gala missing a 5-bagger is such a bad event that nobody will forget in ones life. But good times are still ahead of us and you can make 50 baggers if you are right.
but parin brittania is not a bad stock.

 

GMR Infra... Wasted the first four years of my investing life by investing around 20% of my portfolio here. Kept averaging down but the stock kept going down. Best decision I ever made was to sell it on 2015 budget day at break even. Went on to invest the amount in Granules India and TV Today, both of which are now up 75-80%.

I bought GMR when I initially began investing, thinking that the stock was very cheap given all the assets they owned. I always thought a turnaround was around the corner. The problem was I didn't have a proper investment framework, and since I had already invested a large amount my ego didn't let me admit I was wrong. Nowadays I always write a short one para investment thesis before making an investment. My portfolio performance has witnessed a dramatic improvement since I started doing this.

 

Kindly share the WISDOM you got from this episode.

 

The wisdom I got from this episode is that if you have conviction on a stock, hold it even if it disappoints you in the short term.

I had researched extensively about the company, done detailed analysis, spent many days in analysis each and every detail and then developed full conviction on the stock. But when the stock did not move for 2 years and when I saw other stocks performing very well my conviction gave way so easily.

And in greed of making better returns from somewhere else I switched the stock with Pidilite. Even though Pidilite gave me good returns, but I would have made much more had I been committed to Britannia.

I am sure it happens with almost all investors like us. Don't know how to overcome this tendency of being impatient with long term investments.

 

@Mr Parin Gala-- Why not stick with Pedilite now? I believe it is eqally good story. Or Have you some different opinion. Are you sure that switching back to Britannia or some other scrip will not be repeat of the same mistke ? What is your line of thinking now, please share. Radhey-Radhey !!!

 

writing a para on your investment thesis is a very interesting and effective thing to do for an investor. thanks for sharing.

 

my worst stock was south indian bank which never moved up and i sold it in disappointment in a loss. i bought it at 24 and waited 2 years to sell it at 21.

 

I have been holding EPC Industries (a M& M group micro irrigation venture) for more than two years , still waiting for market to recognise it. No regret !

 

I exited out of Pidilite for a very simple reason. I discovered some other stocks which had a far better story and much more promising than Pidilite in the long run.

I have a strict strategy of holding an extremely concentrated portfolio not exceeding 4 stocks. On a comparitive evaluation of Pidilite with those stocks, those stocks had better stories. So our beloved Pidilite had to leave the portfolio.

But selling Pidilite was not a bad decision at all . I made quite a lot out of Pidilite. And the other stocks outperformed Pidilite after I bought them. So no regrets

 

Mine has been Bhushan Steel...bas naam hi kaafi hai . I bought it in Sept last year when I was new to investing. Couldn't read balance sheets and just bought it because it was so beaten down. Currently struggling in mid 40s I bought it at around 90 first and then after averaging it has become around 70.

 

other stock which made me mad is gillanders co. which is a tea estate co. bought at 85 and next day it started going down. went down to 45. now 60.

 

Availability of reliable data is a challenge for Indian Investors. Stock markets aren't for quick money.

 

@Parin Gala ji

very sad .... your identification of stock is excellent ..but unfortunately missed .... but your next identified stock pidilite dont do that mistake again ...please remember first experience
ALL THE BEST Sir

 

GMR Infra and GVK Power for me. those days were a learning experience. Infatuated by the assets these companies were creating I too bought them . "Emotional Investing" at its best. However having learnt the hard way I try to seek the value in the company. Remember what Warren Buffet said "price is what you pay and value is what you get." Since then I have been more successful. Always try and focus on the fundamentals and try and share my knowledge with fellow investors.

 

I was at loss with my BHEL stocks couple of years before. Ever since I bought, it was in down trend only. My loss was around 6000/-. I took a bold decision then. I booked looses with my BHEL shares.

Parked the entire balance amount in Kajaria in the 2nd week of April 2015. There was a dip in between in Kajaria and averaged down a little. Kajaria steadily went up & there was a total of 44% rise from the invested levels. Now that its over priced and had a great run up by hitting few 52 weeks high consistently, I decided to book profits.

Finally, I sold Kajaria a week before. I covered my losses of 6000/- & on top of it I have earned an extra 4100/- as profit.

BHEL - The so called "navaratna" was never a ratna for me ...

 

in india psu are not for investing for retailers. it only for LIC.

 

How about Coal India & NMDC?

 

if you dont have other good ideas. buy them