BounceBack Ability vs Growth Ability

Hello Everyone,

I just entered Equity Markets. In fact Just last week. Before coming in here I completed The Book- The Little Book that beats the market by JG and an Intensive five hour a day for 8 Days research on Indian Markets, Companies, Articles and Capital Magazines.

I look at Equity investments only for long term for a minimum 7yrs horizon.

Inorder to start off I had shortlisted some companies and read as much as I could about them.

I have come up with this list of Businesses, which am aware of and infact their Products/Services play a role in daily life. India Cements, Mirza International, Jyothy Laboratories, Rallis, Tata Coffee, Federal Bank amongst others. E.G I Have a Red Tape Shoe and we drink Le Cafe from TC. And am confident abt its value. And also I can afford to buy these shares in comparison to their Peers Price and Management skills.

Then I also have a list of companies who are trading low. GMR, GVK, Videocon and GCC. I have omitted last two companies after some doubts.

But I have a conviction abt GMR and GVK. They could be traps or come out shining. Hugely it’s because of the sheer magnitude of business and the background and support interms of family they have.

Should a newbie like me concentrate on such debt ridden companies or focus on growth companies?

Anything above CMP 300 is not in my radar at all and small caps is my favourite. I can live without buying an IT and Banking share. Let’s me concentrate on other Industries.

I humbly request the experienced lot to share their views. The most valuable thing I found during my research is infact ValuePickr and a big thank you to its contributors.

Disclaimer: Invested in GMR, India Cements and Rallis. Further it would be Tata Coffee.

This concept of below 300 is somewhat flawed, I too started of somewhat on similar lines. To give an eg. I bought waterbase instead of Avanti feeds because waterbase was below the cmp limit. I would suggest that you focus on business strength and management integrity rather than CMP.


Absorbed. My next pick would be TCI but I was looking at CMP of 280/- then, now am sure by next week it be over 300/-. So I’ll make sure it does not become My Avanti. Appreciated.