[quote=“Vaibhav_Mittal, post:1444, topic:1282”]
Are these reports available to any and all investors or do we have to be related to these brokerages in some way(like open a demat with them/ subscription) etc?
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Refer below link for all the reports in MoneyControl which are updated date wise:
https://www.moneycontrol.com/broker-research/latestResearchReport/?classic=true
I am little confused about investing. Let say you win by picking stocks first 10 years and made a return of 13% GAGR or be it multi bagger.
After some years, say after 10 years, you find other stocks cheap and promising growth. So you sell your old stock(Which are not having much growth) and buy new one. let us assume you made a wrong call and you loose the money.
I know it is hypothetical question. But investing seems to me like Casino. When you keep winning and make wrong bet. you loose.
is this where diversification comes into picture?
@Mani_Starter This assumes diversification provides a margin of safety. In reality it doesn’t.
Think about it this way. Assume you lend money to 20 different individuals. Will it give you MoS just because you diversified? What if most of those loans turned out to be bad loans for whatever reasons?
Now if one of those borrowers gave you a 50x return(hypothetically speaking), you’d recover your investment and much more.
Hence the actual margin of safety at a portfolio level comes from having big winners in your portfolio and not from diversification (as is widely assumed)
Big winners make up for a lot of losers in one’s portfolio and every experienced investor knows that losers are inevitable in equity investing, no matter how experienced he/she is.
The difference between a casino and equity investing though is that returns in a casino are capped (in roulette for example). In a casino the range of outcomes is known and losses are capped at 100% and there are no stop losses.
In contrast, outcomes in equities are not known, losses in leveraged trading can be way more than 100% and you can use stop losses as a way of capping your downside.
Hope this helps 
Can someone help me understand what does regulated equity means? In context to power sector companies, thanks
@barathmukhi, thank you. true.
It may sound easy and simple. yes. In equity investing we have certain options which will protect the capital from wipe out. But i find it difficult to overcome human behavior.
I have come to know equity investing(Stocks market) when I was
15. I had a chance to start during college days and after starting to work. but did not do it because of lack of resources to know about stock market. All I heard was stock market investing is risky and gambling. friends told that many of their relatives lost lakhs because of stock market.
I also noticed one thing by reading many threads, others experiences and videos. Making money in equity depends on 90% human behavior than the knowledge. I have read on how newton has lost his capital and went bankrupt, even though he has made a decent return on his investment. He could not keep quiet when his friends making more money.
I am usually greedy person and get envy (for example when I hear my friends earn more salary than me, I know it is bad, but it comes to me naturally even before I can realize). I have to be very careful choosing to invest in equity.
Even I became more greedy these days only concentrating on reading newspaper, books and blogs on investing instead of focusing on my job which is generating most import cashflow for me.
if anyone new and starting to invest, I request them to watch this from 48 min. this will save them from disaster.
How to identify if the company’s sales are increasing based on inflation or based on selling more (increasing market share)?
Let us say company A sells laptop.
year 1 sales : sells 100 laptops ( one laptop costs 1 rs) = Rs. 100
year 2 sales : sells 150 laptops ( one laptop costs 1 rs) = Rs. 150
year 3 : sells 100 laptops ( one laptop costs 2 rs due to price increase) = Rs 200
I was reading about ROCE in this article.
it says that market rewards when a companie maintains good roce. why does market punishes this company?
ROCE without growth doesn’t help much.
To give you an analogy, it’s like the only kirana shop in a small town whose population is not expected to grow. Although this store’s ROCE is likely to be higher, it’s growth is likely to be muted, at best.
A high ROCE growth co. without growth is typically a case of a co. which has no avenues to reinvest. In all likelihood, a High ROCE + No growth co. is a dominant market player in a saturated market with no further room to grow. That being said, this co. would have a lot of FCF and would be in a position to dole out a lot of generous dividends to it’s minority partners, which could result in the compounding of dividend income YOY (which I am not a fan of btw because I prefer co’s that can keep reinvesting capital at high rates of return).
Over the medium term, a 50% growth co. with a 20% ROCE is likely to do better than a 10% growth co. with a 40% ROCE.
A 35% grower with 30% ROCE is even better, because it should need very little or no incremental capital to grow and can fund it’s growth from internal accruals, which is why the market rewards such co’s well by pushing up their stock prices opposed to co’s who just cannot grow any more.
@barathmukhi, thank you for your help. now i am getting little bit about roe and roce.
If we take the same kirana store, even if it has same customers every year, then kirana store sales will increase yoy due to inflation. But that is compensated by cost(cost of material employee cost,transport cost) and hence profit will remain same for all years.
Does revenue indicate company’s growth? or when company gives very little as dividend and put remaining profit into the business is called growth?
Now I have to go back and study low ROCE companies.
very well explained Barath. The classic example is Castrol. Even till recently I used to invest in companies which had high ROE/ROCE only to realize that best stocks for picking are where ROCE is expanding due to topline and bottom line growth.
Prof Bakshi had said something similar in this recent tweet, which I recollected when i read you post
Ideal combination is growth in sales, profits and medium to high ROCE.
Also, the closer the ROE number is to growth rates, the better.
Hi all,
Is there any particular reason for the bull run of jagsonpal pharma or similiar stocks. I am not sure if it was driven by any positive news because i couldn’t find any.
Advance thanks.
Can someone suggest a website that provides financial statements for the difference between consolidated and standalone business? I know it can be calculated manually by subtracting consolidated and standalone line items on an excel sheet, however looking for ready-to-use numbers to cut down the task.
Will ESOP have any impact on EPS? What should one do when companies keeps offering shares to its employees? i mean if we give shares to employee, it will decrease the EPS as denominator increase. But it will encourage the employess to deliver better hence adds value to company?
Could anyone share some links about this co relation to research further in Indian context and learn more about ESOP?
Hi guys,
Noob question: The company has about 10K crore Cash&CAsh Eq and a debt amount of about 34k Crorres.
My question is why does the company not use its cash balance to pay off some amount of debt? Will help reduce the interest cost.
While calculating EV, here the MC would refer to that of full stock and not only the free float, I presume? For example, for MRF, the M cap (full) is approx 32,000 crs whereas MCap (free float) is approx 16,000 crs. We would take the greater figure of 32,000 cr while calculating the EV?
A simple question, but I am always confused by this. Grateful for help.
Thanks
Sandeep
These kind of questions cannot be answered without knowing the specifics of the case. If the company conducts quarterly concalls, they will contain what their plans are with respect to cash utilization and debt reduction. Annual Report will also contain some information. You will have to go through them to get the answer. Also check the AGM video if available online.
how much information can be deduced from delivery percentages? are they worthless to a fundamental/ value investor?
Hello everyone,
Question on passive investing in Index funds (e.g. UTI Nifty 50) vs ETFs (e.g. Nippon Nifty BeES) for NRIs
Everywhere I read on the internet, it says ETF is far cheaper than an Index fund, but for an NRI just to clarify my understanding:
costs via Index funds: 0.1% TER (direct MF)
costs via ETF: 0.1% Brokerage with each buy and sell (I am with Zerodha, discount broker) + Bank PIS charges (100 Rs. per transaction + 18 Rs. GST) with each buy and sell. (is it only HDFC that charges this or is it standard??)
So I wouldn’t be wrong in concluding that, for an NRI wanting to passively invest in the index via SIP, an Index fund is cheaper than ETFs??
Am I missing something here?
Thanks for your help!
ETF buying or selling price can deviate from the underlying Net Asset Value. Specially on volatile days it can go against you. Better to stick to Index Fund where the fund house is bound to give you the NAV.
