Thank you @Malolan_R
1. Why dont you sebi amfi guidelines for mcap limits
Are you referring to why I am classifying investment in PPFAS as LCap?
The way their AUM has been growing, down the line I can’t see them making significant investments in Small Caps. They will continue finding opportunities in Large and some Mid Caps but the ratio is hard to predict. To keep things simpler, I classify it as LCap
2. GTT type investing: My bad, I should have better rephrased this better.
Consider two approaches.
Approach 1: I am monitoring sectors/companies at a daily level. The VP forums, google alerts, the news, the stock prices, everything I could consume.
Approach 2: Do not track businesses at a daily level. Rather, after studying if you like a business you decide on an entry value and schedule a GTT order. It gets executed automatically whenever the price condition is met.
For example, I like a business and was waiting for it to fall by say 10%. Over the next few days, the stock falls by 9% and now starting to go back upside.
In approach 1, I was monitoring the business daily, so I would be I would add a small quantity.
In approach 2, the GTT never gets triggered and I am not able to add more stocks to my position.
Approach 2 may sound bad at this point, but I like this approach more and it also helps keep my feet on some rules/framework.
3. Larger companies …will provide long-term wealth creation
The statement is generic and I am not sure if agree here. Multiple scenarios where this isn’t the right way to look at investing.
Example 1: If a sector doesn’t grow over a period or worse, it de-grows, and no matter if the leader remains the leader, as an investor one will likely lose.
| Subscribe To Our Free Newsletter |
