What attracts you ?

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

  1. pradip

    pradip Member

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    @stockguru
    @Vidhi Khanna
    @Meenakshi Razdan

    It will be so much helpful to hear about the companies you invest in your personal capacity. I mean people who are so much thoughtful and knowledgeable, I am sure will be investing in the very best ))

    Thanks !
     
  2. Meenakshi Razdan

    Meenakshi Razdan Administrator Staff Member Moderator

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    Thanks for the compliment but it is most undeserving at least in my case. I think we underestimate the extent of knowledge that we imbibe when we discuss and share thoughts. I personally feel that in answering other people's queries, the person giving the answer is the biggest beneficiary because he looks up things that he would not have otherwise looked up and learns so much more.
     
  3. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    Agreed 100%
     
  4. pradip

    pradip Member

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    @Meenakshi Razdan smart reply ))) Yeah, I agree with what you said

    Still, please share some insights on what you look for when you invest. If you are hesitant sharing company names, please share the sectors you are interested in.

    P.S. I have seen some RJ's interviews on TV. The interviewer has to virtually coax him to reveal the company names he is interested in. I guess I should see the interview again to pick a few tips )))
     
  5. stockguru

    stockguru Active Member

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    Well, thank you for your compliment but I certainly don't think I deserve this. I have made my fair share of terrible mistakes and will keep continuing to do so. Ultimately mistakes and wrong judgements are inevitable and one shouldn't expect that your every investment would turn out to be a multibagger because in the end you are ultimately betting on someone else's effort and work to make you rich.

    Regarding the companies, I think there are more better people to take recommendations from. I can't advice you on any one particular company because I don't have in depth of knowledge as to read all the balance sheets and make out what each and every component in it is. I usually myself rely on research reports and websites like screener to make a sense of numbers in the balance sheet. I have seen Meenakshi having way much more knowledge regarding the numbers of the company and she does a nice job of interpreting it whenever someone asks her for a particular stock.

    Regarding the sectors, if you looking for a longer term I think almost all of the sectors give an equal oppurtunity. To pinpoint a particular sector is very difficult as every sector has something going for it while it also is facing some problems which are peculiar to that sector.For example, pharmas are facing FDA approval issues while IT as a sector is undergoing radical changes due to software automization, Banks are having a problem of NPA's while Infra is fundamentally facing issues in raising capital.

    Having said all this, I would like to advice you to look for quality. A high quality company having a shareholder friendly management should be a good place to look for your next investments. A lot of people in this forum ask for companies whose name personally I haven't even heard of before. I am not saying that all will be bad, some of them might be fantastic and turn multibaggers. As a matter of fact to give you an example Ajanta Pharma five years ago wasn't very well known still it turned out to be a multibagger for its investors. But during that time a lot of pharma companies were like that and odds of picking up on a right company can be very less. If it is in your circle of competence and you understand the pharmacy business in and out then you might have known about it and even might have made money of it. But from my experience, I found it much easy to stick with quality rather than avoiding the tempt to find out the next hidden multibagger

    Look at quality companies having strong managements that are going for cheap. Cash is always the king so always keep some liquid in hand. Market gives ample of opportunities and one should have sufficient capital when the opportunity arrives. Berkshire usually has a few billion dollars in cash and deposit just for this very reason.

    Happy Investing :)
     
    pradip likes this.
  6. pradip

    pradip Member

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    Impressed by your humbleness )))
    Yes, the quality and cash aspect you have highlight are so important. The way I try to maintain liquidity is this. Please share your thoughts -
    Lets say I have Rs.X available to invest in the market. My aim here is to invest this amount in 3 Yrs timeframe. So I put a cap on investing Rs x/36 every month. In case I don't find any investment opportunity in a month, the money I will invest next month is 2* (x/36) and so on. This way I maintain liquidity, avoid the greed of over-investing at one go etc.