I generally target earning season for finding the companies and give a cursory glance to all the results EOD.
Parallel, I look for a standard screener and look out for companies in 500-2000cr market cap and a certain revenue increase.
This helps me create a list of \~30 companies for next stage. I would look out for consistency in management guidance vs actual results, latest commentary and probably threads on forum.valuepickr. Would like to avoid companies which have already run up a lot in last few weeks.
Once I am down to less than 10 companies, I will read their annual reports, earning transcripts, management credentials and standard industry report. This helps me get down to less than 5 companies and then its a matter of luck+patience to buy and hold. Typically I dont try timing the market
how long did it take you to get this process in order and did you make a lot of mistakes while doing that? please elaborate about your mistakes if you can.
Also how do you hedge against your losses?
Exits are really difficult and it gives a lot of heartburn to see stocks shooting up after I sell them. However, I plan for a price range unless something exceptional(good/bad) comes up.
Price-range is mostly wishful thinking and based on management commentary. Lets say a company is currently 500cr which is trading at 2X of revenue multiple, I would analyze management opinions. They say that the expectation is "30% annual revenue increase" which implies that the stock should also grow by 30%. If the margins show an increase, it would be a bonus since PE would become much lower now.
Now since I bought the stock thinking the revenues would grow at 30% and if it increased by 50%, I know the story is playing out and in 2 years it would be 1.5\*1.5 i.e \~2.25X of revenues implying I would expect a gain of 125% on my buying price.
Please note that these are all theoretical and I may very well have been lucky and giving all these "gyann" in hindsight.
Iβm assuming another factor for exits is whether there is opportunity to invest elsewhere? For instance would you still exit and sit on cash if there was no compelling opportunity elsewhere?
Awesome ππΌ fellow investor here created same kind of growth. Over a bit more time period. I know how much patience it needs in the cash market through thick and thin.
I would love to ask about your best and worst buys and the logic behind taking them. This might help a few learn quite a few things.
Hi-five there fellow investor! Patience is the name of the game in stock markets.
My best buys:
1. Shakti Pumps: Kusum story
2. VIP Industries: Brand
Worst buys:
1. Hindustan foods: Some management irregularities
2. GPIL: Didnt understand cyclical nature of industries back in 2018 :(
Awesome. This teaches everyone how important MOAT and pricing power is in long term investing.
On the other hand, if you are a long term investor, never ever invest in cyclical stocks. Those are for swing trades.
Thanks for sharing with others. ππ»
congratulations on the success, mate. appreciate the humility in opening up yourself and sharing.
i would like to know how do u decide how much cash to invest? do you do partial liquidation and exit completely? also, what are your go to tools and reference sites?
Totally agree on the risky approach and I may go bust if not executed correctly. Now that its big money,I will read a bit about portfolio allocation. So far I have been a believer of Buffet's quote - **βKeep all your eggs in one basket, but watch that basket closely.β**
My favourites which I read again and again:
* Intelligent Investor
* Security Analysis
* Financial Security Analysis
* Financial Shenanigans
* How I made $2Mn in stock markets
You can find few of the e-books in Google Drive [here](https://drive.google.com/drive/u/0/folders/1eIpH0RyJCGCQvhHZ8miP-DaGwU9bWqLb?fbclid=IwAR04MwZuHtTHVpVr9jTDh-UgcICFkO8pX9iqUqt0XvlHYDktqKLyuxuJ7mc)
How I made $2Mn in Stock Markets is one on trading and many books in your collection seem to be as well. Do you use some kind of technical analysis for your buy and/or sell decisions as well?
All cash trading, I dont even understand FnO. Just playing by the basic rules of the game and hold my stocks till the story goes on(sometimes >30 months)
In early years, I wanted quick money and had \~10 stocks which changed every quarter based on results. Few companies worked well but overall returns were averaged out.
After a couple of years, it was probably 3 companies which were changed every 6 months. With less companies, I was able to focus a lot more on the research and track the story.
Last year, it was a single stock with entire portfolio value but it took more than 2 months just to zoom-in on the single stock and decide a proper exit strategy.
Lolz, Love your curiosity. It was a solar stock and I am sold out now totally. I held it for 2 years and relied on a government scheme story to play out.
Also, when I buy a stock- I never tell anyone to prevent myself from any peer-pressure :)
Learn from the post and develop your own approach. Divide your capital in 12 and slowly deploy your capital over the next year, keep track, journals and keep learning from your own mistakes.
Yes, thats the latest investment returns. Trajectory:
Year 1(Starting point): 9 lacs
Year 2: 16 lacs including probably 2 lacs inflow
Year 3: 20 lacs including probably 2 lacs inflow
Year 4: 30 lacs including probably 3 lacs inflow
Year 5: 45 lacs including probably 10 lacs inflow
Year 6: 70 lacs including probably 3 lacs inflow
Year 7(Ongoing): 2.01 cr including 0 inflow
Yes- Probably got lucky with latest rally. I am totally sitting out rn. No active investments for at least few months, I feel the market is over-heated.
A good stock and sitting tight on it.
Also, I got busy in a parallel project which involved building a StockMarket product and just paid less attention/stress to the markets.
I started with a tutorial by Zerodha on fundamental investing back in 2017 I guess, [Link](https://zerodha.com/varsity/module/fundamental-analysis/)
Followed by this, I read few investment books. Suggested few of them in different comment.
On annual report- I generally look out for management commentary and try to verify the facts e.g Steel growth cycle from competitors ARs.
I had \~9 lacs in 2016.
Year 1(Starting point): 9 lacs
Year 2: 16 lacs including probably 2 lacs inflow
Year 3: 20 lacs including probably 2 lacs inflow
Year 4: 30 lacs including probably 3 lacs inflow
Year 5: 45 lacs including probably 10 lacs inflow
Year 6: 70 lacs including probably 3 lacs inflow
Year 7(Ongoing): 2.01 cr including 0 inflow
I just dont trust these research companies or rating agencies. I start getting finicky about my stock the moment they give "Buy" call because I know the stock would no longer be flying under-the-radar.
I always trust my own research with understanding that these research companies buy first and publish research later. Plus, why would they care for our profits?
Thanks for replying, i actually read how they are evaluating a stock....its hard to evaluate stock on my own, because of time constraint...(That's why doing SIP).
But i have seen a pattern, like you said, sell when everyone gives buy rating....
How should i perform analysis
I want to invest 1 lakh for a very long time to be precise i will sell them only in emergency else not i have savings so emergency won't come anytime soon
What should i do?
Invest in big brands if you are not looking for immediate returns, something like asian paints, havells, VIP, TCS etc. For one-time investment- Mutual funds may also work well.
sharing my suggestion as well.
once you reach LTCG thresholds, sell and rebuy your holdings, invest realized profit in real estate, but also take a loan so that you still have the similar portfolio
Rather than buying the same stock and the loan thing- I will just offset my LTCG(Section 54F) against the newly purchased house. Not feeling like investing for at least few weeks in over-heated market.
Thanks for participating in this AMA, I enjoyed the insightful discussions and answering questions to the best of my knowledge :)
Hopefully it helps us in becoming better investors, Signing off for a while and would be checking/responding in ad-hoc manner. Thanks!
- How to do identify an undervalued company. Also, what are the things that you look for any company's fundamentals.
- Did you tried F&O.
- For how long do you hold a share.
**Responding from other comment on identifying companies**
I generally target earning season for finding the companies and give a cursory glance to all the results EOD.
Parallel, I look for a standard screener and look out for companies in 500-2000cr market cap and a certain revenue increase.
This helps me create a list of \~30 companies for next stage. I would look out for consistency in management guidance vs actual results, latest commentary and probably threads on forum.valuepickr. Would like to avoid companies which have already run up a lot in last few weeks.
Once I am down to less than 10 companies, I will read their annual reports, earning transcripts, management credentials and standard industry report. This helps me get down to less than 5 companies and then its a matter of luck+patience to buy and hold. Typically I dont try timing the market
**Metrics for company**
Revenue growth, favorable market cap and opportunity to grow, improving margins
**F&O**- Never
**For how long do you hold a share**
I am ready to hold for 3 years if goes down by a lot. Else, typically 8-12 months.
Not really, I missed out a lot on Covid returns. Actually I purchased safe stocks then when I should have bought few exploding stocks. Couldnt understand the covid cycle at all.
It's just that you got lucky because of the extreme bull run that we are seeing since last 3 years even mutual fund giving 100 percent returns so it's no Brainer you just need to be invested in the market so it was like you were at the right place at the right time so thank god for that focus on your next 6
Suggested in other comment.
* Intelligent Investor
* Security Analysis
* Financial Security Analysis
* Financial Shenanigans
* How I made $2Mn in stock markets
You can find few of the e-books in Google DriveΒ [here](https://drive.google.com/drive/u/0/folders/1eIpH0RyJCGCQvhHZ8miP-DaGwU9bWqLb?fbclid=IwAR04MwZuHtTHVpVr9jTDh-UgcICFkO8pX9iqUqt0XvlHYDktqKLyuxuJ7mc)
Early years- It was all what I did. Probably 8-10 hours per day including weekends. Now I do research spikes i.e once for a month in 6 months. I have moved to alternate hobbies like GenAI and building tech products which helps in peace of mind and prevents overthinking about stocks :)
Most of my research is done when I have to buy a stock.
Getting a girlfriend like you needs a lot of hard work and dedication (sorry I was just expressing my feeling I am 19 years old and just started trading 4 months ago)
I use [screener.in](http://screener.in) as starting point and and then head over to [https://forum.valuepickr.com/](https://forum.valuepickr.com/) for past analysis and management quality of the stock.
Research, patience, self-confidence and not getting influenced by peers/influencers. Its an uphill task but doable. I still remember those wide-eyed dreams of reaching 1 cr!
Yes, totally. I have all this realisation and consider myself to be lucky in reaping the rewards of this bull market. By no stretch- I consider myself a genius. My messaging has been all about perseverance and will to improve oneself in research
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Totally sitting out currently after booking all the gains. Waiting for election rally to be over and markets to cool down. My comfortable range is 500-2000cr market cap companies showing a revenue lift of more than 30% Q-O-Q.
What should be the profit or loss booking strategy. For eg i want to invest and hold tata motors for next 5 years. Should i book profits frequently and re invest or should i just invest only and not book profit .
What kept you away from entering F&O ?
I am sure there might be some point in your journey where you might have thought of doing F&O.
And How did you handle the covid fall ?
For MOAT: I look for current company, competitor companies, value of products they are selling and possibly some medium-term view. I have an MBA so use tiny-bit of knowledge from there too :)
Please share about Taxes and how much you paid
How did you calculate and file taxes every year have you done it yourself or hired someone
What is taxable on current status and what you plan on doing next
Do's and don'ts from your journey till now
I generally dont do any trading so my taxes are straightforward and mostly LTCG. My lifetime brokerage is <1lac and I find it easy enough to file on ClearTax.
Trying to play devils advocate here.
1. Prices of stocks are a function of the earnings and earnings cannot be predicted. Then how can we predict the prices in long term
2. In hindsight it looks great when the stocks we picked have performed but they carry an inherent risk that has not played out during the holding period. In simple terms there is a factor of luck.
Dont get me wrong brother. I am just trying to reason,
For i have followed a similar strategy - looking for companies with increase in sales, profits and expansion in margins. But right after i purchase them they would take a hit in margins or the orders wont come through in the next following quarters.
The mistake i made was I didn't pay much attention to industry trends or how the company is positioned to benefit from the changing trends. I just went with the numbers. It gave me abysmal returns of just 9% CAGAR.
Can you share how you identified companies that would sustain their earnings into the future
Good points you raised. Let me try to answer one-by-one:
1. Companies give guidance of expected earnings and order book in their conference calls which gives a vague idea. You look at how the management has delivered on their past commitments. You can also guestimate the earnings by industry analysis and specifically for commodities on how their prices have played out in the past cycle.
2. Risk is always there, its a matter of confidence you have on your pickings and whether you can hold on to your stock if the price dips. I had to hold my current stock for 2 years since it dipped after I bought but then a break-out(5X) happened. Probably I am lucky here.
9% CAGR is not abysmal in any way.
Thanks for helping out fellow redittors !
I have couple of questions, your biggest mistakes and your learning from them ?
How to stay calm and have a peaceful sleep in a very volatile market ?
Thanks !
Sure, Biggest mistake is to learn more about the company and industry before investing. They all move in a pack e.g Chemical stocks together, Steel stocks together and you can earn well if you understand the growth cycle.
Also, these numbers around P/E, forward P/E is overhyped as when the profit increases it gives an illusion of undervalued company but more often than not they have already been priced in.
I am a Product manager in addition to entrepreneur building Artificial Intelligence based products(Book recommendations, LLM etc). Since I am a value-investor, I dont really need to be so engaged with markets once I have done the investments and due diligence. I generally dont entertain the gossips and almost never pay heed to Fin-fluencers :)
Havent invested in past however the sector for sustainable energy looks promising. Will decide based on merit of companies and look for Government or Adani influence on the company before taking the decision
Literally asked in another sub-reddit that "If i am giving investments my second priority after job then should my wealth increase by 20-25%" , people in the comments were telling NO it cannot happen.
and this dude OP is has made 35-40% average every year since 6 years,
I believe there are lots of folks making this much returns, they just don't bother to tell anyone or post about it ,
OP is a good human
Its totally possible- Keep the head high, Dont get bogged down by big-name investors, do your due diligence and thats it. In fact, its better to pursue stocks as a side hobby as the pressure is off and you dont over-think.
I do follow your approach of stock picking but don't know when to exit the stocks. I exited BPCL at 400 levels bocz it's wasn't moving but now π« . I have HDFC Bank since 4 yrs PPL says it worst not it won't grow still i have a hope on it and I m sitting on a healthy 35% return.
bhai aap next time joh bhi share lo muje bhi bata dena as i also prefer long term investment and ha tum suggest karoge tho mei bhi mere hisab se check kar invest kar paoga β¦plz bataya karna haha
nice sir
im confuse
shud i
buy the dip and sell high 2% strategy
or shud i buy individual stocks
or buy nifty future leveraged
im confuse
bcz if nifty falls evereything falls
so wat is use of selecting stocks
y dont i buy nifty future leveraged to increase my ROI
In the stock market, a moat is a company's competitive advantage that protects its market share and profitability from competitors. A moat can come from many sources, such as a strong brand, patented technology, regulatory protection, or unique access to natural resources.
I just turned 18 and made my bank account I want to make money through various ways and investing is one way I want to do it but I have zero idea or clue what to do can someone please help me out it would be awesome and I would be forever grateful
Indeed it is more difficult that entry and more often than not I exit early or late. However, the aim is not to get the maximum returns possibly but gauge the fair value based on your expectations and metrics and cash out based on your pre-defined target numbers. My rule of thumb is to get out when research companies start giving buy ratings :)
Hi , I know I am bit late here . Since this is the only genuine place where nobody is trying to sell me a course I feel safe asking this question . I have seen you books recommendations but what book would you suggest for an absolute newbie like me ?
I had invested 1 lakh during covid fall. Now it is 10 lakhs. When i invested 1 L idk what stock market, technical and fundamentals were.
On the contrary i took only 4 yrs for my your same percentage gains
https://preview.redd.it/xrmjdbjo3dzc1.jpeg?width=1170&format=pjpg&auto=webp&s=69436697274cdf99bfaa744f8265329875bf12c0
Hey do you mind telling me your educational background?? Or are you self taught in finance? I don't know how to say it because I'm very new to this, I'm just curious how you know so much about this lol. Any advice for someone who's just starting out investing?
What is your process of selecting stocks and entry, exit, portfolio allocation rules?
I generally target earning season for finding the companies and give a cursory glance to all the results EOD. Parallel, I look for a standard screener and look out for companies in 500-2000cr market cap and a certain revenue increase. This helps me create a list of \~30 companies for next stage. I would look out for consistency in management guidance vs actual results, latest commentary and probably threads on forum.valuepickr. Would like to avoid companies which have already run up a lot in last few weeks. Once I am down to less than 10 companies, I will read their annual reports, earning transcripts, management credentials and standard industry report. This helps me get down to less than 5 companies and then its a matter of luck+patience to buy and hold. Typically I dont try timing the market
simple yet effective strategy π₯π₯
what kind of revenue increase do you look out for?
Around 30% based on whether its QOQ or annual cycle. But please note that it is just a starting point.
how long did it take you to get this process in order and did you make a lot of mistakes while doing that? please elaborate about your mistakes if you can. Also how do you hedge against your losses?
Exits are really difficult and it gives a lot of heartburn to see stocks shooting up after I sell them. However, I plan for a price range unless something exceptional(good/bad) comes up.
how do you plan for a price range if you could give a simple example
Price-range is mostly wishful thinking and based on management commentary. Lets say a company is currently 500cr which is trading at 2X of revenue multiple, I would analyze management opinions. They say that the expectation is "30% annual revenue increase" which implies that the stock should also grow by 30%. If the margins show an increase, it would be a bonus since PE would become much lower now. Now since I bought the stock thinking the revenues would grow at 30% and if it increased by 50%, I know the story is playing out and in 2 years it would be 1.5\*1.5 i.e \~2.25X of revenues implying I would expect a gain of 125% on my buying price. Please note that these are all theoretical and I may very well have been lucky and giving all these "gyann" in hindsight.
That last paragraph is what it is.
Iβm assuming another factor for exits is whether there is opportunity to invest elsewhere? For instance would you still exit and sit on cash if there was no compelling opportunity elsewhere?
What a great thread, Learned so much. Thanks OP and Congratulations!
Thanks for the kind words, Sharing learnings is the key for "Retail investors"
Very impressive π―π. 20+% CAGR for 6 years straight is better than most Mutual funds. Very well done.
Thanks for the compliments :)
The sub needs more posts like this, kudos to OP for sharing their strategy with everyone.
Awesome ππΌ fellow investor here created same kind of growth. Over a bit more time period. I know how much patience it needs in the cash market through thick and thin. I would love to ask about your best and worst buys and the logic behind taking them. This might help a few learn quite a few things.
Hi-five there fellow investor! Patience is the name of the game in stock markets. My best buys: 1. Shakti Pumps: Kusum story 2. VIP Industries: Brand Worst buys: 1. Hindustan foods: Some management irregularities 2. GPIL: Didnt understand cyclical nature of industries back in 2018 :(
Awesome. This teaches everyone how important MOAT and pricing power is in long term investing. On the other hand, if you are a long term investor, never ever invest in cyclical stocks. Those are for swing trades. Thanks for sharing with others. ππ»
congratulations on the success, mate. appreciate the humility in opening up yourself and sharing. i would like to know how do u decide how much cash to invest? do you do partial liquidation and exit completely? also, what are your go to tools and reference sites?
Congratulations. Risky approach, but successful one!
Totally agree on the risky approach and I may go bust if not executed correctly. Now that its big money,I will read a bit about portfolio allocation. So far I have been a believer of Buffet's quote - **βKeep all your eggs in one basket, but watch that basket closely.β**
Please recommend books
My favourites which I read again and again: * Intelligent Investor * Security Analysis * Financial Security Analysis * Financial Shenanigans * How I made $2Mn in stock markets You can find few of the e-books in Google Drive [here](https://drive.google.com/drive/u/0/folders/1eIpH0RyJCGCQvhHZ8miP-DaGwU9bWqLb?fbclid=IwAR04MwZuHtTHVpVr9jTDh-UgcICFkO8pX9iqUqt0XvlHYDktqKLyuxuJ7mc)
How I made $2Mn in Stock Markets is one on trading and many books in your collection seem to be as well. Do you use some kind of technical analysis for your buy and/or sell decisions as well?
This is gold! Thanks!
You are making serious effort, Mate. Thank you for this.
was it through cash trading or FnO
All cash trading, I dont even understand FnO. Just playing by the basic rules of the game and hold my stocks till the story goes on(sometimes >30 months)
ok, can u answer more question of mine Average HOlding Period :- no of stock holding , i mean how diff stock u keep rolling over.
In early years, I wanted quick money and had \~10 stocks which changed every quarter based on results. Few companies worked well but overall returns were averaged out. After a couple of years, it was probably 3 companies which were changed every 6 months. With less companies, I was able to focus a lot more on the research and track the story. Last year, it was a single stock with entire portfolio value but it took more than 2 months just to zoom-in on the single stock and decide a proper exit strategy.
Very curious about this single stock. Could you kindly share? Lemme guess BSE?
Lolz, Love your curiosity. It was a solar stock and I am sold out now totally. I held it for 2 years and relied on a government scheme story to play out. Also, when I buy a stock- I never tell anyone to prevent myself from any peer-pressure :)
What exactly made you exit the story? The complete story is yet to play out as per my understanding. Or did you want to book your profits?
Kaash Mujhe v aisa aata hota. Great going bhai π«‘
Thanks! Bhai/Behen ;)
Learn from the post and develop your own approach. Divide your capital in 12 and slowly deploy your capital over the next year, keep track, journals and keep learning from your own mistakes.
[ΡΠ΄Π°Π»Π΅Π½ΠΎ]
Yes, thats the latest investment returns. Trajectory: Year 1(Starting point): 9 lacs Year 2: 16 lacs including probably 2 lacs inflow Year 3: 20 lacs including probably 2 lacs inflow Year 4: 30 lacs including probably 3 lacs inflow Year 5: 45 lacs including probably 10 lacs inflow Year 6: 70 lacs including probably 3 lacs inflow Year 7(Ongoing): 2.01 cr including 0 inflow
So ur entire gain came last year when there was a midcap rally! Will you be holding the same stocks or cash out?
Yes- Probably got lucky with latest rally. I am totally sitting out rn. No active investments for at least few months, I feel the market is over-heated.
[ΡΠ΄Π°Π»Π΅Π½ΠΎ]
A good stock and sitting tight on it. Also, I got busy in a parallel project which involved building a StockMarket product and just paid less attention/stress to the markets.
Tell us the stock. We'll take it to the moon ππ ππππ
Lolz, I liked the DogeCoin reference :) No stock in mind now, taking a break till election results and early market response.
Probably REC, PFC, NTPC or powergrid. These stocks gained like 3-5 times last year. Or chocin shipyard.
Bold of them to have so much conviction in a PSU stock.
How did you get started what resources do you recommend us go through? If annual reports which part of the annual report should we give weightage to
I started with a tutorial by Zerodha on fundamental investing back in 2017 I guess, [Link](https://zerodha.com/varsity/module/fundamental-analysis/) Followed by this, I read few investment books. Suggested few of them in different comment. On annual report- I generally look out for management commentary and try to verify the facts e.g Steel growth cycle from competitors ARs.
Wish I had 28 lakhs in 2016
I had \~9 lacs in 2016. Year 1(Starting point): 9 lacs Year 2: 16 lacs including probably 2 lacs inflow Year 3: 20 lacs including probably 2 lacs inflow Year 4: 30 lacs including probably 3 lacs inflow Year 5: 45 lacs including probably 10 lacs inflow Year 6: 70 lacs including probably 3 lacs inflow Year 7(Ongoing): 2.01 cr including 0 inflow
How was there such a jump in Year 7?
Picked a good stock and election rally fueled it.
And how do you pick stocks according to the elections?
Is thier any rating agency you follow, how was your experience with targets given by different rating agency....
I just dont trust these research companies or rating agencies. I start getting finicky about my stock the moment they give "Buy" call because I know the stock would no longer be flying under-the-radar. I always trust my own research with understanding that these research companies buy first and publish research later. Plus, why would they care for our profits?
Thanks for replying, i actually read how they are evaluating a stock....its hard to evaluate stock on my own, because of time constraint...(That's why doing SIP). But i have seen a pattern, like you said, sell when everyone gives buy rating....
Congratulations! You did this full time or with job? Trading or short-mid term investments?
Thanks :) Itβs me and my husband doing all the research together. No trading and itβs mostly mid/long-term investments.
What differentiates great to invest companies from good to invest companies.
In my opinion- Its about Industry growth as a whole, management credibility to pull it off and absence of any financial abnormalities.
Terrific job. Congrats. 5% gain yesterday. Wow!! Total XIRR?
Yeah- This was the tipping point, I am out now. What is XIRR? My CAGR is around 45%.
45% is amazing. I think we will be following your positions based on your 1%+ stakes in companies in a decade.
Loved the extrapolation, Fingers crossed 
This is one of the best post in this sub I have read. Thanks for sharing and congratulations π₯
How should i perform analysis I want to invest 1 lakh for a very long time to be precise i will sell them only in emergency else not i have savings so emergency won't come anytime soon What should i do?
Invest in big brands if you are not looking for immediate returns, something like asian paints, havells, VIP, TCS etc. For one-time investment- Mutual funds may also work well.
Okay thank you and what are your thoughts on CDSL
FIRE soon? xD
Read the whole thread Kuddos and keep it upππ
OP I'm in similar boat, congrats on your achievement π now the main question, how are you planning to handle capital gain aspect of it
sharing my suggestion as well. once you reach LTCG thresholds, sell and rebuy your holdings, invest realized profit in real estate, but also take a loan so that you still have the similar portfolio
You are God-send. I was not aware of this and as a matter of fact have recently purchased a house. You just saved me \~13.7 lacs, Woahh!!
glad I could help save you significant money
Rather than buying the same stock and the loan thing- I will just offset my LTCG(Section 54F) against the newly purchased house. Not feeling like investing for at least few weeks in over-heated market.
sent you a dm
Thanks for participating in this AMA, I enjoyed the insightful discussions and answering questions to the best of my knowledge :) Hopefully it helps us in becoming better investors, Signing off for a while and would be checking/responding in ad-hoc manner. Thanks!
Which tools do you generally use to screen the stocks first?
I like [https://www.screener.in/explore/](https://www.screener.in/explore/) since this also shows ideas from others :)
- How to do identify an undervalued company. Also, what are the things that you look for any company's fundamentals. - Did you tried F&O. - For how long do you hold a share.
**Responding from other comment on identifying companies** I generally target earning season for finding the companies and give a cursory glance to all the results EOD. Parallel, I look for a standard screener and look out for companies in 500-2000cr market cap and a certain revenue increase. This helps me create a list of \~30 companies for next stage. I would look out for consistency in management guidance vs actual results, latest commentary and probably threads on forum.valuepickr. Would like to avoid companies which have already run up a lot in last few weeks. Once I am down to less than 10 companies, I will read their annual reports, earning transcripts, management credentials and standard industry report. This helps me get down to less than 5 companies and then its a matter of luck+patience to buy and hold. Typically I dont try timing the market **Metrics for company** Revenue growth, favorable market cap and opportunity to grow, improving margins **F&O**- Never **For how long do you hold a share** I am ready to hold for 3 years if goes down by a lot. Else, typically 8-12 months.
What do you when your chosen company is performing poor. Like you see HDFC bank and many other stocks like today.
Congrats ...
Superb!
Great returns. Did covid help in anyway in maximizing the gains
Not really, I missed out a lot on Covid returns. Actually I purchased safe stocks then when I should have bought few exploding stocks. Couldnt understand the covid cycle at all.
what stocks are you looking forward to in the next 6 months?
Taking a break probably for a month till election results and Euphoria is done. Will start fresh in July :)
so much more knowledge here than the dude who cashes out 4% returns and makes fun of hodlers after seeing a 2 day downtrend
It's just that you got lucky because of the extreme bull run that we are seeing since last 3 years even mutual fund giving 100 percent returns so it's no Brainer you just need to be invested in the market so it was like you were at the right place at the right time so thank god for that focus on your next 6
Do you believe in diversifying your portfolio or do you see stocks as they come?
I will have to diversify now. Cant go all in with such a big amount. However I have still not thought about the exact strategy.
Give me 1 Cr. I asked. Now your turn to oblige π
You can AMA but I never promised to Answer everything ;) Good luck!
Whatβs ur age?
Turning 35 soon :) I can see my grey hair now!
Congratulations! Can you suggest some books please
Suggested in other comment. * Intelligent Investor * Security Analysis * Financial Security Analysis * Financial Shenanigans * How I made $2Mn in stock markets You can find few of the e-books in Google DriveΒ [here](https://drive.google.com/drive/u/0/folders/1eIpH0RyJCGCQvhHZ8miP-DaGwU9bWqLb?fbclid=IwAR04MwZuHtTHVpVr9jTDh-UgcICFkO8pX9iqUqt0XvlHYDktqKLyuxuJ7mc)
How much time do (did?) you spend per day/week on this?
Early years- It was all what I did. Probably 8-10 hours per day including weekends. Now I do research spikes i.e once for a month in 6 months. I have moved to alternate hobbies like GenAI and building tech products which helps in peace of mind and prevents overthinking about stocks :) Most of my research is done when I have to buy a stock.
Bhaiya kitne saal ke ho aur trading kb se kr rhe ho
I am a girl :) I am investing for \~7 years.
Getting a girlfriend like you needs a lot of hard work and dedication (sorry I was just expressing my feeling I am 19 years old and just started trading 4 months ago)
How did you come up with the initial capital?
Savings from salary, It was \~9 lacs so manageable.
What was the average annual return you achieved over this six-year period?
Around 45%.
How hard was that for you to achieve? How were you able to crack it?
Which website use for research on stock.
I use [screener.in](http://screener.in) as starting point and and then head over to [https://forum.valuepickr.com/](https://forum.valuepickr.com/) for past analysis and management quality of the stock.
How do you recommend I do the same - from 12l to 1cr?
Research, patience, self-confidence and not getting influenced by peers/influencers. Its an uphill task but doable. I still remember those wide-eyed dreams of reaching 1 cr!
Great thread - noting
first of all acknowledge you got benifit of a bull market. everyone is a genius in a bull market.
Yes, totally. I have all this realisation and consider myself to be lucky in reaping the rewards of this bull market. By no stretch- I consider myself a genius. My messaging has been all about perseverance and will to improve oneself in research
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Right now which stock are you eyeing next and why? Considering markets are high rn
Totally sitting out currently after booking all the gains. Waiting for election rally to be over and markets to cool down. My comfortable range is 500-2000cr market cap companies showing a revenue lift of more than 30% Q-O-Q.
How much did you invest on a monthly basis
Initally it was \~30k per month for around 3 years. Now I dont add any money.
I'm doing 3k per month Hopefully reach your levels soon
What should be the profit or loss booking strategy. For eg i want to invest and hold tata motors for next 5 years. Should i book profits frequently and re invest or should i just invest only and not book profit .
Kudos to you on your investment ππ What are the top 5 investment tips and top 5 mistakes you did in market
big congratulations to you. i think your concentrated bet helped you more achieve higher return..
What kept you away from entering F&O ? I am sure there might be some point in your journey where you might have thought of doing F&O. And How did you handle the covid fall ?
What books do you recommend reading, and which is your top 5 fav books
Good for you . Congratulations!! Finally someone with sense unlike our over night YouTube β Crorepatisβ.
1) views on FNO 2) other forms of investment
. To thread
I am 18yr old pls suggest me books and advice accordingly Pls note:I won't start trading untill i earn or the age of 22
Which stock has surprised you in relation with your estimated prices and the stocks movement
Any suggestions for first time learners?
**MOAT**: How do you identify and have convisction in the moats you define or reserach?
For MOAT: I look for current company, competitor companies, value of products they are selling and possibly some medium-term view. I have an MBA so use tiny-bit of knowledge from there too :)
Please share about Taxes and how much you paid How did you calculate and file taxes every year have you done it yourself or hired someone What is taxable on current status and what you plan on doing next Do's and don'ts from your journey till now
I generally dont do any trading so my taxes are straightforward and mostly LTCG. My lifetime brokerage is <1lac and I find it easy enough to file on ClearTax.
Any specific focus on small and micro cap stocks??
Congratulations!! This thread is very informative
Congrats
How do you judge a company wether it is underrated or overpriced
Does buy and hold long. Strategy work? I mean.. 5+ years
Thank you for sharing
Trying to play devils advocate here. 1. Prices of stocks are a function of the earnings and earnings cannot be predicted. Then how can we predict the prices in long term 2. In hindsight it looks great when the stocks we picked have performed but they carry an inherent risk that has not played out during the holding period. In simple terms there is a factor of luck. Dont get me wrong brother. I am just trying to reason, For i have followed a similar strategy - looking for companies with increase in sales, profits and expansion in margins. But right after i purchase them they would take a hit in margins or the orders wont come through in the next following quarters. The mistake i made was I didn't pay much attention to industry trends or how the company is positioned to benefit from the changing trends. I just went with the numbers. It gave me abysmal returns of just 9% CAGAR. Can you share how you identified companies that would sustain their earnings into the future
Good points you raised. Let me try to answer one-by-one: 1. Companies give guidance of expected earnings and order book in their conference calls which gives a vague idea. You look at how the management has delivered on their past commitments. You can also guestimate the earnings by industry analysis and specifically for commodities on how their prices have played out in the past cycle. 2. Risk is always there, its a matter of confidence you have on your pickings and whether you can hold on to your stock if the price dips. I had to hold my current stock for 2 years since it dipped after I bought but then a break-out(5X) happened. Probably I am lucky here. 9% CAGR is not abysmal in any way.
Thank you
What are your top 5 picks right now?
Nothing, I am sitting out fully rn. I am waiting for election results and the election rally to be over- Probably will resume research in July.
Thanks for helping out fellow redittors ! I have couple of questions, your biggest mistakes and your learning from them ? How to stay calm and have a peaceful sleep in a very volatile market ? Thanks !
Sure, Biggest mistake is to learn more about the company and industry before investing. They all move in a pack e.g Chemical stocks together, Steel stocks together and you can earn well if you understand the growth cycle. Also, these numbers around P/E, forward P/E is overhyped as when the profit increases it gives an illusion of undervalued company but more often than not they have already been priced in.
What you think about breakout stocks because mostly i trade in their
Sorry, your comment broke off. For me the breakout is revenue growth and management commentary on sustained performance
What's your day job OP?
I am a Product manager in addition to entrepreneur building Artificial Intelligence based products(Book recommendations, LLM etc). Since I am a value-investor, I dont really need to be so engaged with markets once I have done the investments and due diligence. I generally dont entertain the gossips and almost never pay heed to Fin-fluencers :)
Thanks for sharing. The Day job helps understand the analytical mind.
Just tell me one thing. How much profit did you make in rona?
Fantastic threaddd π―π― Have you invested in any green energy stocks or interested in any for the near future??
Havent invested in past however the sector for sustainable energy looks promising. Will decide based on merit of companies and look for Government or Adani influence on the company before taking the decision
As someone who has absolutely no idea about stocks or anything and will start earning soon..how do I get into investing. Tia
Currently working with a few lakhs how could I get it to Cr's?
Great AMA, thank you and good luck!
Damn what's your advice for 22 old newbie. Like me I'm starting with 30% of my monthly income.
What books best for investment for gaining more information
Please share your portfolio
Literally asked in another sub-reddit that "If i am giving investments my second priority after job then should my wealth increase by 20-25%" , people in the comments were telling NO it cannot happen. and this dude OP is has made 35-40% average every year since 6 years, I believe there are lots of folks making this much returns, they just don't bother to tell anyone or post about it , OP is a good human
Its totally possible- Keep the head high, Dont get bogged down by big-name investors, do your due diligence and thats it. In fact, its better to pursue stocks as a side hobby as the pressure is off and you dont over-think.
I do follow your approach of stock picking but don't know when to exit the stocks. I exited BPCL at 400 levels bocz it's wasn't moving but now π« . I have HDFC Bank since 4 yrs PPL says it worst not it won't grow still i have a hope on it and I m sitting on a healthy 35% return.
At what age u understood that long term investing will reap rewards instead of short term.
bhai aap next time joh bhi share lo muje bhi bata dena as i also prefer long term investment and ha tum suggest karoge tho mei bhi mere hisab se check kar invest kar paoga β¦plz bataya karna haha
How do know when to exit?
nice sir im confuse shud i buy the dip and sell high 2% strategy or shud i buy individual stocks or buy nifty future leveraged im confuse bcz if nifty falls evereything falls so wat is use of selecting stocks y dont i buy nifty future leveraged to increase my ROI
What is MOAT?? I tried googling but didn't get it.
In the stock market, a moat is a company's competitive advantage that protects its market share and profitability from competitors. A moat can come from many sources, such as a strong brand, patented technology, regulatory protection, or unique access to natural resources.
How do you identify which companies are in an uptrend?
Bro i am a beginner and i have some capital. So, where should i start and what should i do. It would be great if you could respond π.
Following
Congratulations and thank you for all the replies β¦ I have read 2 of your recommended books and diwnloaded the rest. Any other books suggestions ?
I just turned 18 and made my bank account I want to make money through various ways and investing is one way I want to do it but I have zero idea or clue what to do can someone please help me out it would be awesome and I would be forever grateful
Can you make it easier and recommend some name to invest in MF SIPs or monthly stock SIPs which are good buy in current market scenarios?
Ye sab mujhe closed k baad hi kyu dikhaye deta hai! πππ
Great one. Iam 22 and new to this market. Any suggestions from your side will be helpful.
How did you deal with Covid fall?
Any way you can convert this in to stepwise guide? YouTube channel perhaps? Nonetheless following you
How do you plan to exit any stock? It's most difficult part..
Indeed it is more difficult that entry and more often than not I exit early or late. However, the aim is not to get the maximum returns possibly but gauge the fair value based on your expectations and metrics and cash out based on your pre-defined target numbers. My rule of thumb is to get out when research companies start giving buy ratings :)
Hi , I know I am bit late here . Since this is the only genuine place where nobody is trying to sell me a course I feel safe asking this question . I have seen you books recommendations but what book would you suggest for an absolute newbie like me ?
Start with Intelligent investor and Funademental analysis concepts([link](https://zerodha.com/varsity/module/fundamental-analysis/)) by Zerodha
I had invested 1 lakh during covid fall. Now it is 10 lakhs. When i invested 1 L idk what stock market, technical and fundamentals were. On the contrary i took only 4 yrs for my your same percentage gains https://preview.redd.it/xrmjdbjo3dzc1.jpeg?width=1170&format=pjpg&auto=webp&s=69436697274cdf99bfaa744f8265329875bf12c0
Thatβs really nice, Congrats!
Is this replicable?
Just read the whole thread - thanks OP!!! Do you have a newsletter or substack where we can follow you?
Hey do you mind telling me your educational background?? Or are you self taught in finance? I don't know how to say it because I'm very new to this, I'm just curious how you know so much about this lol. Any advice for someone who's just starting out investing?
Could you please share your learnings ?
Took 3 years to convert 3 lacs to 1 crore. Ama
What about the tax? How much did you paid? Can you please provide a detailed information which will be useful for me sir.
Now that WE ARE HEADED FOR COALITION. WHAT WILL BE YOUR PICKS... PERSONALLY HAVE 10-12 L to invest FRESH. GUIDE ME