In a volatile market, it is difficult to select stocks with minimum risk to the capital. Yet, Vikas Gupta of Arthveda has accomplished this difficult task applying the principles laid down by Benjamin and Warren Buffett.
In his article in moneycontrol.com, Vikas Gupta explains that the stocks that he has chosen are virtual monopolies/ dominant players, with high ROE, large cash in the books, free cash flows, low debt, quoting at low P/Es etc.
The seven stocks that have been given the coveted title of “Safe Haven Stock” are Coal India, NMDC, BHEL, Engineers India, Gujarat Gas Company, Balmer Lawrie Investment and Maharashtra Scooters. There is a detailed explanation on each stock that you can read at MC.
Incidentally, two of the stocks, Gujarat Gas Co and Maharashtra Scooters, have pride of place in the portfolio of Parag Parikh’s PPFAS Mutual Fund. So, you know you are in safe hands when you follow Vikas Gupta’s recommendations.