Base rate investing: a fultoss available to investors
Recently I came across an article and below excerpt was the highlight. Thanks to https://alphaideas.in/ who does the hard work so that I can read wonderful blog content, Indian capital market news.
Source: Base Rate Investing: The Smart Investor’s Secret
Keeping “inside view” in context, when I am looking at a company’s valuation and historical financials I am not using broader context or history. I am not doing peer analysis and not seeing what history tells about such companies. If history or peers are not available in India then I look outside India.
One of the examples of inside and outside view I noted in my investing was for Nuvama: When the company got listed in September 2023, its market cap was 9000 crores with PE of about 20. I have seen other Jars and I know how many candies they had. In stock fundamentals language, I have seen how much PE is given to other wealth management companies: 360 One and Anand Rathi were trading in 25 to 50 PE range. So my valuation for Nuvama in my mind was about ~15,000 crores. So I bought it aggressively. As picture evolved, I continued to invest in it with improving earnings. I trusted the management as PAG is large Aisa focused investment firm. All the time simple patterns may not work also they might not be frequently available but when they come, they can be the easiest to play.
Disclosure: Invested in Nuvama and transacted in last 30 days. This is now my second largest position.
Disclaimer: I am not a financial advisor and nor a SEBI registered Analyst. The content shared here is only for learning purpose. All the names mentioned here are for example purpose. I may buy more, exit or partly sell the stock/bonds without any prior intimation
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