I started off this thread. Any additional inputs/ changes much appriciated. I am not expert in the domain but learning by doing.
Posts tagged Value Pickr
Screener Query – Search for multiyear Investment (26-11-2023)
(Promoter holding + FII holding + DII holding) > Public holding AND
(Profit growth>=10 OR
YOY Quarterly profit growth>=10 OR
Profit growth 3Years>= 10 OR
Profit growth 5Years>=10) AND
(Sales growth>=10 OR
YOY Quarterly sales growth>= 10 OR
Sales growth 3Years>=10 OR
Sales growth 5Years>=10) AND
Debt to equity < 1 AND
Pledged percentage < 20% AND
Market Capitalization>500 AND
Piotroski score >=5
Long term investment strategy (Buy, hold but don’t forget) (26-11-2023)
Thanks for explaining it. i understand what you are saying but it would take a lot of time to reach the level i am comfortable with and I don’t feel comfortable keeping my PF to much skewed towards a single stock for so long.
Also this is another reason why i would do the trimming.
Long term investment strategy (Buy, hold but don’t forget) (26-11-2023)
There is another angle to this. When a position becomes big by itself or relative to other stocks in the PF, it could be hard to digest wild moves if they happen, even for seasoned investors. So it is not a bad idea to trim the position even by a few %, more for some psychological comfort than profit booking.
I am yet to experience this with a stock, but regularly experience notional loss at PF level, when market falls.
Long term investment strategy (Buy, hold but don’t forget) (26-11-2023)
Its two way thing. When you start allocating fresh money into other stocks, not only your weightage of others stocks increase but also your 20% stock will start decreasing. With each fresh investment, simultaneous increase and decrease will happen and effect will be big. You wont need so much money to make 20% stock to 5%. And even if initially it comes to 15% , then 10% , you are on the way of reducing its influence on your overall portfolio.
Apcotex Industries – monopoly in Synthetic Rubber? (26-11-2023)
No. The agreements Apcotex gets into with their customers has variable pricing model based on the raw material. Generally, as the prices of raw materials increase they can pass on this cost to the customer. And they do as well for most of their products. In such cases they don’t lose much of the GM. Company did it well in 2020-2022 period.
Ofcourse, in some products company can’t pass on all the cost to customers. For example their current XNBR Latex is facing demand headwinds and thus to fight off the competition they are selling the XNBR at cost.
Similarly if the prices of raw material decreases they have to pass that cost savings to the customers. Now if they have excessive inventory of that raw material, they will take a hit on GMs.
CAGR expectation and experience (26-11-2023)
I’ve got two Google Sheets, one to keep track of my equities holdings; I keep it up to date as soon as I sell or buy a stock. The second sheet is for networth, which keeps track of all other investments such as savings account, bonds, real estate, NPS, PF, EPF, and so on. I update all other assets once in 3-6 months, real state whenever I receive on going rate information from a credible source (may be once in 18-24 months). I keep making a copy on these sheets in same file at end of each quarter and Diwali.
I have these sheets maintained from Jan 2009. It is quite difficult to get XIRR information from brokers and then combine it with other brokers and various cash in or out from the trading accounts.
I have kept calculating performance relatively simple. I only look networth sheet.
if Investible cash/fund + equity at any time is (Tn)
Equity investment performance = CAGR ((T5), (T1)) – Savings from salary.
For example, if on 1st April 2018 my equity portfolio was X, which grew to 4X by 1st April 2023. That is 32 % compounded rate. Best estimate of salary saving available for equity investing taken as 4%, that gives me equity investment performance rate of 32-4 = 28%
It is also my memory anchor book, which keep reminding me different phases, learnings in my investing cycle.
I believe that assessing investment performance without including investible funds is not a true performance.
Long term investment strategy (Buy, hold but don’t forget) (26-11-2023)
for that you need to have more money or willing to put more money in the stock market.
lets say for the argument sake i have 1 Cr PF and one stock is now 20 lacs. Now to balance it with more money (i keep the allocate from 4 to 6% max to a stock) I need huge sum of money (4 Cr more to be precise if the max allocation to a stock is 4%).
let me know if i misunderstood you
How to value a cafe business? (26-11-2023)
Need help valuing this business.
A cafe business with 60 locations and total annual revenue of Rs 150 crores. Net profit is Rs 3 crore.
Assuming all stores are on lease/rent.
How much valuation does the business get?
Available information so far:
- Sales have increased at CAGR of 20% over last 4 year.
- Number of stores have increased at the rate of 3 stores p.annum.
- Biggest expense is Labor followed by raw material and rent.
- No funding done so far.
- There is debt of around Rs 20 crores
Do we value this business via sales multiple or profitability metrics ?
Any help would be very helpful.