I wanted to list down some thoughts on when should I take entry, since many companies i read about seem lucrative but want to have a some level of concentration in portfolio –
- Read about 10-12 companies before buying one (may take week or more). Narrow down to atmost 2 companies. This ensures that I say no to most of the companies. Inculcates reading habit etc.
- Ideally, I want to own companies for which I have multiple engines of compounding/mental-models
- Sectoral tailwinds – like tourism now, e.g. samhi & rategain, power sector IEX & inox
- Aggressive yet achievable Growth outlook – e.g. Zaggle (100 percent growth guidance)
- Fairly small market cap – < 10000 cr. less discovered or non investible for many Instt. investors at present, so growth will lead to discovery and thus entry of institutes will become another engine.
- Debt reduction – like samhi and inox wind.
- Confidence in Management – read concalls, background, employee feedback – linkedin, glassdoor etc. any social profile etc. e.g. liked the conservative tone of Ajay Mian from all e tech, at same time the aggression of Inox wind management
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