Hahaha… I liked the last part… Of itch vs urge. Nice sense of humor sir.
Coming to constantly checking stock price is indeed an addiction. I had it too. I follow a TSL method which I update every Friday once a week which has somewhat enabled me to control my urge.
However to be honest, when price rises, it doesnot impact much, but during corrections, I agree its difficult to control the urge to check prices every 2 hours. This is so because same quantum of loss is way more painful than same quantum of profit. Fear is the most powerful emotion. Practise, patience and reading may alleviate the issue.
If possible, would request you to kindly post some detailed information regarding Indigrid Invit. Does it have a fixed return. How safe is it ? It seems to have been trading around 97 some time back. Now it seems to be trading around 90. Any reason for the same ??
@hitesh2710
Hi Hitesh sir, I have started doing a SIP (starting sep) on some of the names like Asian paints, HDFC twins, Pidilite to name a few. The idea is to have some robust companies in the portfolio that can withstand any kind of market conditions, Being a newbie wanted to know your point of view in my approach,
They have pledged 100% of promoter shareholding to JP Morgan and other bankers. Pathetic corp governance again by the group. To get Vedanta delisted they needed big money and pledged STECH promoter shareholding.
I am evalutating Indigrid InvIT, see this thread Indigrid InvIT: High yield on stable and predictable revenues. This infrastructure investment trust is managed by Sterlite Power Transmission Limited, a 100% subsidiary of sterlite technologies. So any governance issues with the Sterlite group are a red flag for me.
The names you have selected are some of the best companies. So it seems they are good candidates for SIP kind of buying. One needs to keep discipline to keep buying consistently inspite of price swings. There are some investors who cant buy when prices go down too much and others who cant buy when prices go up too much. For SIP kind of investing disciplined buying with a long term horizon is important.
Everything written on google or whatsapp groups is not the gospel truth. I have been following Indigrid Invit since some time and it seems they are delivering on what they have promised. I havent had the courage to buy into it but find the instrument very interesting atleast for parking funds temporarily. Payouts happen every quarter and one can buy and sell easily (barring the issue of lot size).
Thanks @hitesh2710 for your response, I really appreciate and value your reply.
The idea has you have rightly mentioned is to do SIP irrespective of any fluctuation in any adverse condition.
Hopefully I continue my discipline approach (just 2 months old in SIP long way to go)
Once again thanks.
Ha ha ! Thats really witty @hitesh2710 bhai ! Would love to have your views on Take Solutions and Suven Life Sciences. Pls do share if either of those are on your radar. Thanks !
Very well said.
Given the recent carnage in the nbfc sector the margin of safety of these stocks have increased tremendously. Even if credit becomes costlier the margins might be hit by say 200-300 bps. But given that most of the loan of hfcs are in form housing finance chances of these being defaulted is very low. It is not as if dhfl or indiabulls will suddenly wind up business or default on their loans. Even if net profits going forward fall by 20% do you think current valuations are cheap. I know the stocks can fall further which in fact will make them more attractive.
Keeping these in mind do you think that one can buy these stocks(not now maybe after the market stabilises).
Actually I tried to draw an analogy of when Buffett bought American express after the fraud.
Sir @hitesh2710 what are your views on the same.
I used to track and own take solutions but it was always a techno funda bet. Fundamentally I was never fully convinced about its long term.potential. A lot of things did not add up and somehow I didn’t get enough confidence.
About Suven I havent tracked it for a while but the company has to be valued only on CRAMS business. The NCE business is just an optionality.
I think a major part of price wise correction may be done. But time.wise correction may be pending.
We should not look at things being attractive because they have corrected 40% or 60% or x % from top.
Having said that it seems a lot of nbfc have been punished severely and in some instances things might have been overdone. But if i see price movements in some of these the falls have not been arrested.
I think one doesn’t need to be too hasty in getting into these beaten down names. Its not as if these stocks are going to turn around and run up all of a sudden. After a lot of beating the usual pattern is to consolidate in a range and then gather momentum for an upmove.
Still if one wants to buy staggered buying seems a good approach.
Dear Hitesh,
I am building an inflation proof portfolio for my dad with the following names. Would like to know your thoughts on that.
Company
Low from 52 week
Page
22.12%
HUL
13.48%
Colgate
11.88%
P&G -alternate month
17.20%
Britannia
21.01%
Nestle - alternate month
19.89%
Pidilite
22.66%
Asian Paints
23.50%
Bajaj Fin
30.42%
HDFC Bank
10.55%
Kotak Mahindra
17.29%
HDFC AMC
30.62%
HDFC Life
34.37%
I am having fin stocks at 45% of portfolio. Using the recent correction to add some quality stocks.
Please note, also did a detailed comparison for FMCG stocks below (courtsey screener.in):
My two cents on your stock selection. I think this is an excellent selection if your investment horizon is very long.
I have been in the stock market for over 25 years now and the only thing I have seen is that what survives is Quality (yes, quality with a capital Q). You may buy it at an expensive price but if you hold it for long, you will still make good money. And if you are lucky and there is a semi crash in prices of all stocks and you get in cheap, the returns will be even better.
Today is such a scenario when good quality stocks are suddenly available 20%-30% cheaper than their highs. The Quality stocks will always remain relatively expensive mainly because they will continue their high grow at high ROCEs either due to the sector tailwind they are in, their market leadership, brand pull, efficient operations etc.
Many of us (including me) also invested in many average stocks where their upward price movement kept giving us the false conviction that we are owning the right stocks. Fortunately, my exposure to such stocks was small.
Now that many of those are down 50%-70% below their highs, a relook at them will tell us why we should have exited those stocks long time back at the lofty valuations. Many of these average stocks may NEVER see their all-time price again (or reach those all-time highs again after maybe 4-5 years). Most of us don’t bother to check the ROCE of their stocks but are content with a high PAT growth. It is easy to manipulate PAT growth but not ROCE. If we relook at the ROCE of some of our stocks, many would be in a single digit and never in their history have they gone into double digit which begs the question of why are they in this business in the first place (better would have been to put the invested capital in a bank fixed deposit and play golf instead).
Anyway, all the best in your investment journey. It is times like these which shake you up and give you life long lessons.
