Here I am attempting to the a brave thing in this world of investing. Brave because I do not want to talk about any stock buying ideas as of now I do not certainly not consider myself apt for the same. Further, I feel that in my own selfish way, creating a type of a journal about my mistakes will help me in the long run to avoid at least some of those.
1st and the latest -
Raymond - Bought in October sold in November.
thesis to buy - doomsday in consumption. not growing especially in apparel. Rural and Tier 2 and Tier 3 stress at very high levels because of inflation, some problem in consumption pattern due to “Adhik Mas”. Now my thought process - things will revert sooner than later, concalls of companies were positive about the same. Further, highest ever marriages about to happen in next quarter. So things should fall in line.
Raymond - Apparel plus garmenting plus real estate plus engineering plus demerger announced, debt free. trading at combined TTM PE of around 20 (adjusted for higher other income because of sale of personal care business recently).
Other things such as strong brand also present.
I remembered about the family feud between father and son but ignored it. Further, i also ignored today’s consumption pattern towards fast fashion away from traditional suiting and shirting. I always thought that Tier 2 and Tier 3 cities, such changes are slow to happen.
Now came the acquisition of Maini Precision. at the first i could not understand the acquisition because major claim by the company was to foray into “Sunrise Sectors of defence and aerospace etc.” A company doing well in traditional business why wanted to suddenly shift towards momentum rather than focus on already owned businesses.
Then came the thought that company is trying to actually do some thing or the other just to remain in limelight. Sell personal care, demerge the businesses, acquire other company and even in the past foray into real estate etc etc.
Further, the famous family feud again erupted and things started moving haywire. Hence I needed to sell it at around 5% loss. Not a big loss per say but in terms of opportunity, transaction, time invested this was a mistake to learn from.
I will ponder upon and come back on my learnings about the same.