Can I book the first copy of the book
Hitesh sir, what about AB capital, is the destroy the investors wealth r give handsome returns in future
Those looking for a Book by Hitesh Sir ,
Go through the video which is of good value.
In below Video , he has beautifully answered questions like When to invest , How much to invest , How to get ideas , how to see research reports et cetera
Invest an amount that will let you sleep in peace
Thanks for sharing. It is brilliant.
Thanks for the suggestion about the book. As of now it remains only a distant possibility as I feel writing a book needs a lot of time and thought coherence besides the will to write a book.
The thing about writing on valuepickr is that we get feedback from fellow investors which tends to sometimes help our thought processes also.
I was surprised to see this video on youtube. Thanks for sharing it.
It was a talk I delivered to a group of Ahmedabad doctors trying to sensitise them about equity investing. So a lot of stuff is for guys who are not investing but want to learn ropes of investing. This was sometime in early 2018.
I try to be quite clear about why I am entering a particular position. Whether its a long term fundamental based investment call or whether its a trading call (be it short to medium or even long term) based on technicals in fundamentally good companies.
If its a long term call I am okay with some drawdowns in price. And there I tend to monitor business developments and keep checking my investment thesis based on quarterly nos or based on relevant newsflow etc.
If its a trading call based on charts (I Usually select fundamentally sound companies in these calls also as far as possible) then I have a definite stop loss in mind which I adhere to. In such situations if price corrects beyond the point of comfort or a pre conceived mental stop loss I tend to exit these positions. But here also I have been burnt sometimes where I get stopped out by price corrections and on my exit the stock starts moving up. But thats the nature of the game and you have to stick to rules you yourself have set up.
Whether the PPT is available to share in the forum? if so please forward the same
Thanks @Bharat19 for sharing the video.
Very nicely summarized speech, touching upon all important aspects of equity investments.
Nice to see you Hitesh Bhai.
its good presentation and summarized all the info very nicely.
Could we get PPT of this presentation?
It is good to finally watch Hiteshji in conversation on his favourite topic :slight_smile
Finally located the presentation. Please find attached the presentation related to the talk.
Its pretty basic stuff for beginners aimed at sensitising investors to take interest in equity investment especially do it yourself stuff. ART OF INVESTMENT.pptx (99.5 KB)
Hi Hithesh Bhai.
Hopefully my post was a relevant one and you got a chance to evaluate my question.
Please let me know if my post was irrelevant also. I’m allways learning from my mistakes.
Sorry missed your post.
Bajaj finance and Cholamandalam are solid companies with good track record behind them. With gruh now with merger with bandhan the situation changes and you will have to take a call of what to do with it. IDFC First is a bet on the skills and vision of Vaidyanathan and how he takes then bank forward. But I feel it will be atleast somewhat better than the earlier management.
I guess if your horizon is 10 years plus then you can also look at some other sector besides financials to add market leaders from that pack. Maybe something on the lines of Nestle or Asian Paints or Bata or Pidilite etc.
Holding companies in only one sector is sometimes risky as we might not know how the sector is going to pan out in the future. If you have observed 2-3 years back pharma looked like a sector which was considered invincible and a must have in the portfoliio. Now its in dire straits. It might recover but drawdowns have been huge and these things tend to affect portfolio performance.
@hitesh2710 sir, thanks a lot for your insights.
Sir, what do you think about Philips Carbon Black as a stock and about Lakshmi Machine Works in the textile machinery segment(Their TMD division is seeing very dull sales I heard from a close source).
Thank you for the answer Sir!
I knew something was wrong with my approach, but didn’t know exactly what. You have hit the nail on the head. I am basically running behind the cover of the safe finance sector names where my conviction is high, but as you rightly said this is adding a huge concentration risk to my portfolio.
I had completely ignored the other sector leaders as they allways seemed optically too expensive for me (Market Capitalization and PE wise) but let me take a look at them once again and start nibbling into them. Once we have them on our portfolio, we will will be more inclined to keep abreast about the stocks and the sector.
Here is my approach to buying as per the learnings from this forum.
Assuming I need to buy 100 shares of a company to meet required allocation.
I will buy 10 share chunks on break outs above 200 DMA on a monthly basis upto maximum of 60 shares. Also buying 20 share chunks upto maximum of 40 shares when correction happens and company nears fair value.
Share purchase price range = 0-150% of fair value depends on the conviction.
No selling until story is completely ruined. No selling to reduce allocation %. Hold 30% liquid in all markets except bear markets.
@hitesh2710 Hitesh bhai, thanks so much for always clearing all the investment queries one has and explaining it in a simplest manner .
One query i had regarding the stocks you mentioned such as Asian paints, Pidilite and Page industries is that they are never available at cheaper valuation and it always fails DCF test and PEG ratio (mentioned by Peter Lynch) whenever one tries to calculate .
1 How should one value these types of stocks ?
2 How to ascertain the best levels to buy these stocks ?
3 Why does they fail the PEG ratio test ? The growth of Asian paints and Pidilite isnt spectacular (barring page industries case , where we can still consider the higher ROCE and high growth rate) but in this two cases growth too is not great and neither is the ROCE similar to page but still they command similar valuations ? Is it dependent on market perceptions and if so, can one invest in these stocks for 5-6 year horizons assuming that the market perception remains positive about this stocks ? Why doesnt PE derating happen in these stocks when growth reduces as it happens in other stocks ?
Please let me know what i am missing to consider in these stocks ?
This technical approach to buying above 200 dema is for people into momentum investing. For guys like you who want to buy for 10 plus years without selling I would tend to prefer to buy on extreme weakness and maybe buy when stock goes a lot below 200 dema. It might seem counter intuitive but would provide low cost acquisition of the stocks you select for the portfolio.
I wanted to seek your opinion regarding asset allocation. I have been investing for the 8 years and have never paid any heed to macroeconomic news. For the first time however, I have been uncomfortable with everything that is happening around us.
- Indian Large cap stocks are trading at above long term mean valuations
- Indian Small cap stocks are only slightly above mean or near long term averages
- Globally, liquidity has reached a peak with QT having started in US
- Global debt to GDP is well above long term averages - (in USA which is 1/3 rd the world economy - public debt, private non financial debt and consumer debt are close to 100 year peaks!) meaning financial leverage is no longer an option
- Retail investors in india continue to pour money into equity as evidenced by strong SIP flow
- Famous investors such as Stanley druckenmiller, Ray Dalio and Howard marks continue to remind us regularly of the debt bubble brewing.
- Global interest rates are at centennial lows.
Despite the correction, do you believe it is the right time to sit on a healthy (>50% or near about) cash allocation. If not, is there a cautious way to invest in equity without having to pay 60 times earnings for page or Asian paints?