Harshal’s long term folio for wealth creation

No, definitely not a FOMO. I am not the kind of investor falling to a FOMO. If i believe in the business and it’s future growth prospects, and have properly studied the historical performance of the company, i would consider investing in the company. For detailed explanation you can refer to my previous comment.

You can refer to my previous comment to understand my investment thesis in D-mart and other high valued scrips, but to summarize i look at the following things before investing in high valued scrips

1. The historical performance of the business – The business should show a consistent growth in topline and bottomline.
2. The business should have a good cashflow.
3. The business should have some kind of MOAT as compared to it’s peers.
4. The future growth prospects should be high.
5. Along with PE, another metric which is consider is PEG ratio.
6. How aggressively the company is expanding.
7. Company should have low debt, preferably less than 0.1.
8. Good management and what their vision is towards the company’s future growth (it is a must, can’t stress enough how important this factor is).
9. Consistent increase in the OPM. The OPM should remain consistent or should atleast grow at a decent pace. Continuously decreasing OPM is a big red flag for me.

Now again, please understand that not every company will fulfill all the above criteria’s at once, that’s where your judgement as an investor comes in to decide whether to invest in a particular scrip or not, varies with every individual which is completely okay. What matters is that you should have a SOLID investment thesis and when you see your investment thesis not playing out, you should be wise enough to get out of that scrip.

No offence taken, it’s always good to have a discussion with your peers having different opinion than yours.

Hope i was successful enough to clear your doubts.

Thanks!!