If company free cash flow is negative than what it says?
Please brief.
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Hi!,
I have some questions and itâs great if some help me out.
- Is DCF really matter if the investing horizon is below 3 years?, give me insights for short term investing for below 3 years?
- how to get to know sector rotation like railways had their time, then PSU Banks, Now (may be) Green energy, How to be certain which sector is having its cycle.
Why volume buying & selling by HFT firms legal? Isnât this a type of price manipulating?
One reason is, they find arbitrage opportunities between exchanges, and they make profit by taking the price differences. It can also be looked at as good, as they bring some liquidity. And they contribute to tax revenues, so they are legal. And I donât think they can do HFT in high price stocks, like they do in lower price stocks, so unless we are participating in lower price stocks, I guess, we donât cross paths.
Recently I am watching You tube broadcast of Basant Maheshwari ji, almost every day and what strikes me odd is he is a great proponent of leveraging as well as concentration. Yesterday he was giving example.of 1 person who made 100 crores corpus , starting from 1 crore just within 3 years by taking 6 times leverage and also invetsing in just 1 or 2 stocks. My question is - is it possible to make 100 crores in such as short time even if we have studied a company in such details that we know more than the promoters about that particular business?
From what little I know, I donât think we should mix investing and speculation, so to speak, together.
While there are instances, where stocks have risen 20 or 30 times in a couple of years, they are rare. With shorter term trades, the payoff could be very good, one can get 20-30% in a couple of months, and if one can do this repeatedly, finding trending stocks in trending sectors, with increased position sizing, pyramiding, with good knowledge of TA, and timely exits, not to mention the markets being buoyant, there is a possibility of making more than what one would get through investing in the same period of time, and all of this is without leverage, and in cash segment. Not to mention the risk management, which can completely derail everything.
100 crores from 1 crore in 3 years, must be derivatives too? He must be a great trader, and he must have been very lucky on certain days with derivatives trades, and he must have got big losses too.
From RJ himself. He admired both Buffett and Soros.
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You could look up the sad returns generated by the PMS run by Basant . He is now a you tuber spicing up stories that are lapped up by retail investors who then are into his small case and he earns from the advert on his You tube channel . He had some time back started the Fand O section which made loses and no one hears about it now . Beware .
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Whatâs his PMS return?
I watch Basant Ji youtube videos. People make mistakes but as far as I know, he never recommends FnO in his YouTube videos. I came across this website, but it only shows 1 year CAGR which is more than 50% which is great. Iâm not sure about past returns. If you could share past data that would be helpful.
Note: Iâm not invested in his schemes.
In case of smallcase, what you need to see is after all charges what are the real returnsâŚI will post actual returnsâŚ
In case of BM vision , it shows 50% returns in 1 years, but if you click on costs then you get
So actual returns are 9.07% for 1 year
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Okay got it, the subscription fee is making all the difference. I think It will be constant for a year, 29500/- whether you buy 1Lac or 1Cr. Let me know if my understanding is correct. If yes, then this scheme is not for small retail investors including me. This fee will be negligible for a higher deposit that will increase the return %.
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Regular updations done by smallcases which incurr transaction costs as well as high Short term capital gains and long term capital gains tax are not counted in this. It will bring down the returns. To justify their fees, they have to do frequent updations and these costs will never reflect in their return statement.
Also we have no means to verify their claims of high retruns, as they dont have to disclose NAV daily like mutual funds.
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While I understand what these above posts are saying, I would like to make a different point as well. I think, even successful investors, after a while, may not continue or repeat their past success. Their present may not be as rosy as their past. While their interests lie with their clients, they may experience difficult times, owning to many reasons, change in market dynamics, unavailability of bargains, tech, unsuitability of investing styles, reducing investing tenures etc. Happens to the best, happened to Lynch, Druckenmiller and many more.
Just saying.
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how to read annual reports, I have started reading but after reading it, I could not understand it and get bored
Better to start with concallsâŚThey are short and in question answer format , more like readymade notes instead of Textbook type annual reports. And if you are lucky, then may be some funny conversations too. Start from there and you will develop liking. Once you read the presentations and concalls, then very few things remain to be seen in annual reports.
Nowadays most of the things get covered in concalls, so annual reports tend to be old information at best.
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So you mean concall and presentation is sufficient?
One more thing by using screener,tijori or trebdlyne companyâs past performance and balance sheet is sufficient?
Our focus should be more in concall?
From last few days I was in same dilemma if get all information on some platform than is it required to go through annual report?
Please share your view and guide.
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The US fed reserve has given clear indications of rate cuts from next year. Could anyone help me understand how much impact would it have on profitability of companies that have a little high debt say a reliance industries or any company with substantial debt? Would the impact on PAT be extremely low or will it be significant? plz briefly describe the impact of rate cut in general
When you want to get into details then offcourse you have to go into annual report. For example, if you want to know how much salary the promoter is drawing, you wont come to know that from concall or presentation. If you want to know related party transactions, then you have to read annual reports.