Hitesh portfolio

(Hitesh Patel) #3594


Most pharma stocks are in a sideways consolidation mode barring a few that have moved up. I dont think there is very strong trend visible in pharma stocks and I dont want to waste too much time in sectors where there is no visible trend. . And valuation wise I dont find too many no brainers in pharma space.

(A shah) #3596

@hitesh2710, Hi Hiteshbhai, what other investment books you recommend to read and reread apart from One up on walk street and Pat Dorsey book ?
Many thanks

(arpitjain512) #3597

One can look at Natco Pharma available at cheap valuations comparatively I feel.

(Hitesh Patel) #3598


The idea about rereading books is to first read books which get you hooked in terms of feeling that you can learn and implement stuff from the book in a practical way. Basically the book worth rereading is the one which you feel adds a lot of value to your own growth and development as an investor. For me the Intelligent investor was a tough book to read and I laboured through it. Couldnt think about reading it again.

Similarly on reading the books like One Up on Wall Street, Pat Dorsey’s book I felt that there was a lot in those books that I could learn and apply practically easily. Among other books I liked and read again (and sometimes again) were Zebra In lion country by Ralph Vanger, Common Stocks and Uncommon profits by Phil Fisher, Joel Greenblatt’s The Little book that beats the markets.

(Hitesh Patel) #3599

Read a wonderful book Masterclass with superinvestors. by Saurabh Basrar and Vishal Mittal of Altais advisors.

One of the few books that profile some known and some unknown superinvestors of India.

The book features personalities like Ramdeo Agarwal, Ramesh Damani, Hiren Ved (alchemy capital) Shyam Sekhar, Bharat Jayantilal Shah, Rajashekhar Iyer, Govind Parekh, Vijay Kedia (names I could recall easily from among the many superinvestors profiled in the book.

It gives an insight into the journey of these investors and their big winners and their investment sytles. Most of the guys have different approaches to investment but still all of them made it big by making some bold big bets when they had the cards in their favour.

For me the key take home message was to have confidence about making it big in the markets and follow the learning curve diligently. These investors all focussed on getting their information by going through annual reports, attending the AGMs, in some instances doing scuttlebutt etc.

The book is easy to read and interesting because it features people with different investing styles and hence avoids being boring and repetitive. The relevant topics have been well covered with all investors.

My favorite chapters were those dealing with Rajashekhar Iyer and Hiren Ved. Both came across as very savvy investors and have a great track record behind them.

(A shah) #3600

Thank you so much Hiteshbhai for explaining the reasons behind rereading and also the recommendations .

(paresh.sarjani1) #3601

Hello @hitesh2710 Sir

Would like to comment on below chart ?

The fall of price is approx 85-90% from avg price but if you see volume, it’s almost negligible (fall is with very low avg volumes)

Is it a kind of speculative in nature? Because what I have observed is whenever the price moves with less volumes it’s generally speculative and reverses the movement.

But in this the movement in price was huge

(Hitesh Patel) #3602


The fall as you say seems to have happened with very low volumes. But many a times thats the case. Because there are no buyers and sellers are desperate to sell, they keep on selling in panic mode at any price. At some point of time value emerges and there would be buyers who would be ready to buy in big volumes.

Ideal thing to do would be to wait for a retracement of these kind of rises and then consider buying if any. Usually after falls of such magnitude there is no V shaped reversal. There is a lot of consolidation needed before stock price can take off.

(paresh.sarjani1) #3603

How to identify whether in this case market makers sold or investors sold…
SHP doesn’t show that much difference quarterly or 6 monthly.
So it gives me speculative nature feeling here.

(gautham1) #3604

Hi @hitesh2710 . General question. Did the recent run up (in index as well companies outside index) surprise you. I understand that market is expecting NDA to come back. But where are the earnings?. Auto ( commercial and passenger) numbers still showing flat/degrowth.
And overall such a strange market this. Just a few months back (After the IL & FS and the liquidity issue in the bond market) people feared about a systemic level problem. Nobody wanted to touch NBFC/Bank stocks. So is the story is in US market. After the apple warning, everyone started talking about recession etc. And now this. To me this looks scary.
(Btw had someone invested in quality names and didn’t do anything during the IL&FS panic, he would have come back to the same level by now.)

(Hitesh Patel) #3605


Its very difficult to make out whether investors or speculators sold off in any particular sell off. I dont know what purpose it serves to know these kind of things.

We have to take our own call on any buying selling irrespective of anybody else doing buying/selling.

(Hitesh Patel) #3606


On the day of the state election results even though the BJP lost heavily the market made a smart U turn after going down and amidst huge volatility emerged stronger at the end of the day. On that day I was convinced that probably a bottom was made. And even after that there were a lot of people who were sceptical about markets . I had guessed that we probably had a bottom but the kind of rise we have had in the past few weeks is somewhat unexpected.

I also posted some time back about nibbling and gradually accumulating into quality small cap stocks. I still feel next few quarters could be hugely rewarding for small cap investors. Earnings momentum also is there in select few small cap stocks. Problem is that one has to look hard to find out these companies. Its not like 2011 period where such companies were lying around for anyone to pick up.

Regarding NBFCs only a select few high quality names have made it close to their previous peaks. Just look at the stock prices of DHFL, Ibulls Hsg, etc.

My view would be for the current strong rally to sustain in the run up to the election and then maybe a temporary top could be made on good news of BJP winning the elections (if at all they win it. I have no idea who is going to win but the airstrike probably has tilted scales in BJP’s favour)