When you buy a stock buy its business he said. When you buy a stock, buy it as though markets will close for 5 yrs he said. When people get greedy, I get fearful and when people get fearful, I get greedy he said. Yes ! No prizes for guessing he's the master of equity markets WARREN BUFFET !
Depressions, Crises, Crashes, these are truly investors best friends. Why ? Its during these times you get to buy the shares of a company which is lower than the book value, lower than what it deserves, lower than the fair price of the share. And how does that help you ? When markets head for recovery you would see the price of your share quoting at twice or thrice the price you bought it at.
Markets always do the excesses. Excesses in both directions. During correction, the fall always brings price to a value less than what the fair value is, and during the boom, the rally always takes the price to a value greater than what it deserves. As simple as that.
Our aim is simple. EXPLOIT THIS CYCLE OF FORTUNE. BUY LOW. SELL HIGH. As simple as that.
I'll give you a check list of how to create MULTI-BAGGERS :
PICKING UP UNDER-PRICED STOCKS AND PRODUCING MULTI-FOLD RETURNS IS AN ART.ONE NEEDS TO DEVELOP IT.LET ME TELL U THE SAFEST WAY HOW TO SELECT STOCKS THAT CAN GIVE U SUCH TREMENDOUS RETURNS.WHEN U PICK UP A STOCK U NEED TO RESEARCH INTO THE FOLLOWING ASPECTS ---->
1) IS THE COMPANY IN PROFITS?
2) HAVE THE PROFITS BEEN ON THE RISE? IF YES THEN HOW STEEP HAS BEEN THE RISE?
3) WHAT IS THE BUSINESS OF THE COMPANY?
4) DOES THE BUSINESS OF THE COMPANY HOLD GOOD POTENTIAL IN THE FUTURE?
5) HOW ARE ITS PEERS BELONGING TO THE SAME SECTOR DOING?
6) CAN U EXPECT AN INCREASE IN PROFITS OUT OF THE BUSINESS OF THE COMPANY? OR CAN THE PRESENT SET OF NUMBERS BE AT LEAST SUSTAINED GOING AHEAD?
7) WHAT IS THE PE OF THE COMPANY? IT HAS TO BE LOW......IDEALLY LESS THAN 2 !! YES !! MOST STOCKS I PICK UP ARE IN FACT OF THE PE OF LESS THAN 1-1.50
8) AND OF COURSE EPS?.....GOOD EPS FOR A LOW PE IS AN ATTRACTIVE PICK
9) DOES THE COMPANY HAVE AN ALTERNATIVE OR AN ADDITIONAL BUSINESS? IF YES HOW PROFITABLE IS IT?
10) DOES THE COMPANY HAVE ANY BRIGHT STORY SUCH AS LAND BANK, OR TAKE OVER OR DEMERGER OR MERGER?
11) HOW GOOD IS THE PROMOTER HOLDING? ANYTHING IN EXCESS OF 60 % IS SOUND.
12) HAVE THE PROMOTERS BEEN INCREASING THEIR STAKE? IF YES, A GOOD SIGN.
13) DO FIIs HAVE INTEREST IN THE STOCK? IF YES HAVE THEY BEEN INCREASING THEIR STAKE? IF SO A GOOD SIGN. SAME HOLDS GOOD WITH DIIs (MF HOLDING)
14) OTHER MATTERS SUCH AS DIVIDENDS, BONUS, SPLIT AND RIGHT ISSUES.
ANY STOCK YIELDING MORE THAN 10 % DIVIDEND YIELD IS A BRIGHT PICK.
15) NEWS AND RUMOURS. AS THEY SAY BUY ON RUMOURS AND SELL ON NEWS.
AND WHEN I GET A PICK THAT SATIFIES MOST CRITERIAS ITS "BUYING TIME"
"ART OF BUYING & SELLING" ---->
OF COURSE ON DIPS, AND IDEALLY IN PARTS SO AS TO ALLOW YOU THE LUXURY OF AVERAGING OUT.
IN A BEAR MARKET "FRESH LOWS" KEEP HITTING. SO KEEP BUYING NEAR THE 52 WEEK LOW IN SEVERAL PARTS. FOR E.G. IF YOU INTEND TO BUY 100 SHARES, BUY IN MULTIPLES OF SAY 10 !
IN A BULL MARKET, IT SHOULD BE MORE OF SELLING. ALL THAT YOU HAVE ACCUMULATE IN THE BEAR MARKET SHOULD BE SOLD. "FRESH HIGHS" ARE MADE. KEEP OFFLOADING ON EVERY HIGH ! IN PARTS.
PLZ NOTE BEAR MARKETS MAY LAST FOR 18 MONTHS OR MORE. SIMILARLY BULL MARKETS TOO CAN LAST FOR A WHILE. AND FOR ORDNIARY INVESTORS ITS NOT FEASIBLE TO DEMAND SO MUCH DEDICATION.
MAY BE THATS WHY WE HAVE BULL PHASES IN BEAR MARKET AND BEAR PHASES IN BULL MARKET, WHICH ARE GOD SENT OPPORTUNITIES !
SO READERS HAVING BRIEFED YOU ENOUGH ABOUT HOW TO GO ABOUT INVESTMENTS, I WILL NOW KEEP POSTING MY MULTI BAGGER EQUITY CALLS ON THIS BLOG AS AND WHEN THE OPPORTUNITIES ARISE
Depressions, Crises, Crashes, these are truly investors best friends. Why ? Its during these times you get to buy the shares of a company which is lower than the book value, lower than what it deserves, lower than the fair price of the share. And how does that help you ? When markets head for recovery you would see the price of your share quoting at twice or thrice the price you bought it at.
Markets always do the excesses. Excesses in both directions. During correction, the fall always brings price to a value less than what the fair value is, and during the boom, the rally always takes the price to a value greater than what it deserves. As simple as that.
Our aim is simple. EXPLOIT THIS CYCLE OF FORTUNE. BUY LOW. SELL HIGH. As simple as that.
I'll give you a check list of how to create MULTI-BAGGERS :
PICKING UP UNDER-PRICED STOCKS AND PRODUCING MULTI-FOLD RETURNS IS AN ART.ONE NEEDS TO DEVELOP IT.LET ME TELL U THE SAFEST WAY HOW TO SELECT STOCKS THAT CAN GIVE U SUCH TREMENDOUS RETURNS.WHEN U PICK UP A STOCK U NEED TO RESEARCH INTO THE FOLLOWING ASPECTS ---->
1) IS THE COMPANY IN PROFITS?
2) HAVE THE PROFITS BEEN ON THE RISE? IF YES THEN HOW STEEP HAS BEEN THE RISE?
3) WHAT IS THE BUSINESS OF THE COMPANY?
4) DOES THE BUSINESS OF THE COMPANY HOLD GOOD POTENTIAL IN THE FUTURE?
5) HOW ARE ITS PEERS BELONGING TO THE SAME SECTOR DOING?
6) CAN U EXPECT AN INCREASE IN PROFITS OUT OF THE BUSINESS OF THE COMPANY? OR CAN THE PRESENT SET OF NUMBERS BE AT LEAST SUSTAINED GOING AHEAD?
7) WHAT IS THE PE OF THE COMPANY? IT HAS TO BE LOW......IDEALLY LESS THAN 2 !! YES !! MOST STOCKS I PICK UP ARE IN FACT OF THE PE OF LESS THAN 1-1.50
8) AND OF COURSE EPS?.....GOOD EPS FOR A LOW PE IS AN ATTRACTIVE PICK
9) DOES THE COMPANY HAVE AN ALTERNATIVE OR AN ADDITIONAL BUSINESS? IF YES HOW PROFITABLE IS IT?
10) DOES THE COMPANY HAVE ANY BRIGHT STORY SUCH AS LAND BANK, OR TAKE OVER OR DEMERGER OR MERGER?
11) HOW GOOD IS THE PROMOTER HOLDING? ANYTHING IN EXCESS OF 60 % IS SOUND.
12) HAVE THE PROMOTERS BEEN INCREASING THEIR STAKE? IF YES, A GOOD SIGN.
13) DO FIIs HAVE INTEREST IN THE STOCK? IF YES HAVE THEY BEEN INCREASING THEIR STAKE? IF SO A GOOD SIGN. SAME HOLDS GOOD WITH DIIs (MF HOLDING)
14) OTHER MATTERS SUCH AS DIVIDENDS, BONUS, SPLIT AND RIGHT ISSUES.
ANY STOCK YIELDING MORE THAN 10 % DIVIDEND YIELD IS A BRIGHT PICK.
15) NEWS AND RUMOURS. AS THEY SAY BUY ON RUMOURS AND SELL ON NEWS.
AND WHEN I GET A PICK THAT SATIFIES MOST CRITERIAS ITS "BUYING TIME"
"ART OF BUYING & SELLING" ---->
OF COURSE ON DIPS, AND IDEALLY IN PARTS SO AS TO ALLOW YOU THE LUXURY OF AVERAGING OUT.
IN A BEAR MARKET "FRESH LOWS" KEEP HITTING. SO KEEP BUYING NEAR THE 52 WEEK LOW IN SEVERAL PARTS. FOR E.G. IF YOU INTEND TO BUY 100 SHARES, BUY IN MULTIPLES OF SAY 10 !
IN A BULL MARKET, IT SHOULD BE MORE OF SELLING. ALL THAT YOU HAVE ACCUMULATE IN THE BEAR MARKET SHOULD BE SOLD. "FRESH HIGHS" ARE MADE. KEEP OFFLOADING ON EVERY HIGH ! IN PARTS.
PLZ NOTE BEAR MARKETS MAY LAST FOR 18 MONTHS OR MORE. SIMILARLY BULL MARKETS TOO CAN LAST FOR A WHILE. AND FOR ORDNIARY INVESTORS ITS NOT FEASIBLE TO DEMAND SO MUCH DEDICATION.
MAY BE THATS WHY WE HAVE BULL PHASES IN BEAR MARKET AND BEAR PHASES IN BULL MARKET, WHICH ARE GOD SENT OPPORTUNITIES !
SO READERS HAVING BRIEFED YOU ENOUGH ABOUT HOW TO GO ABOUT INVESTMENTS, I WILL NOW KEEP POSTING MY MULTI BAGGER EQUITY CALLS ON THIS BLOG AS AND WHEN THE OPPORTUNITIES ARISE
hope this s one of the unique blog helpin ppl to make money.. great going ganu
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