Journey of Equity investing learnings , growth and scaling

To be honest if you know valuation of companies you hold and are positive of growth prospects and growth comes in the price may hold if not go down.

Where there are tailwinds and growth is very high for next 2-6 quarter is where money can be made ( my guess )

Though we may not see across board stocks doing well. Hence position sizing and right picks in those will create alpha.

On downside consolidated portfolio companies where earning downgrades can bleed.

Need to be quick.to take the calls to switch and rebalance.

Disc - Not qualified to advise these are personal views.

I expect 2025 to be decent.

Thanks Cshar for your insights…

Curious to know, you said you will stay away from EMS companies trading at exorbitant valuations… Then what’s the reasoning behind your new investment in EMS company Virtuoso Opto which is trading at p/e of more than 80.

Regards

Virtuoso is doing capex for compressor and expending in deep freezer market. Forward PE is around 20, discounted for FY25. FY25 Sales projections are 1100-1200 cr and current EV is 1300 cr hence EV/Sales is close to 1. This is my thesis to isolate as cheapest bet. Had PG, Amber and Epack at different levels, made money but sold at higher levels and they rise continuously. :joy::joy:

Its 2.5% portfolio exposure only.

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2025 new year begins with a long awaited correction in mid and smallcap. Though we are only 7-10% fall in the index in mid and smallcap but large fall across stocks.

My sense correction of less than 10% from 52 week high are relatively strong stocks.

With such steep correction comes a relief rally too and January will be interesting to see which stocks rebounds

I have generally added to strong stocks in last 4 years in such correction and sold once where stocks have correcter 20-30% and bounce hasnt been strong coupled with muted results.

Its a good time to evaluate portfolio and load up good growth stocks where results are strong

One mistake which i see is people wait for their stocks to come back to original price from where it fell before they can sell ( usually doesnt happen sooner takes couple of quarters ).

Fully invested may churn to stronger names in fall.

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