People start losing patience within 1 year, if share price does not appreciate and you are considering that time frame for accumulation. This wiil defintely improve my patience of holding stocks. Thanks for sharing your thoughts…If possible keep writting regularly.
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The reason i don’t mind paying a premium for a company like hul is i don’t need to get so granular. If i were buying a bajaj consumer i would need to… with hul i dont. They are a behemoth… they have processes set up to handle issues that have been tested by time. Unless there is a major issue regards promoters or degrowth i honestly don’t care 
. The company has been performing well and the stock price has been languishing and its almost fairly valued now at nearly covid valuation with a nice bonus of a 2 percent dividend yield. It just seems like a very safe low risk method of getting returns in the low teens for the foreseeable and is exactly what im looking for currently in a very hotly valuated mid and small cap market.
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This mainly works for me when I’m building a position in a huge bluechip company that is going through tough times. The last time i did this was with itc for more than a year between the price of 160 and 200. Once theres very low downside and no upward triggers in sight is the best time to do this. Especially when i dont have a lumpsum to invest and need to rely on monthly sips based on my business profits. Ive kept a bucket of
HUL, Sbi cards, Kotak (already built hdfc with a lumpsum) and will add to them in that order for the next year or so. If one of them runs up atleast i have the other two to add in. Plus you got me intrigued with infosys and considering starting an sip there too if it falls further after these poor results
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This is very important. When narratives about certain stocks are negative, it gives longer time-frame to build position and if you keep patience your returns will be much better than Index.
ITC, COAL INDIA have demonstrated this. COAL INDIA is a cyclic business so an investor should slowly reduce the position size where as stocks like ITC, HUL can be kept for much longer time-frame.
Large Cap investing needs lot of patience.
Same can happen with Kotak Bank as well. There are no major negatives. Stock is not moving as Market has moved the money to other banks, but over a period, things can change, and Kotak Bank can benefit. But lot of patience is required in such stocks. If there is major financial crisis in Western World, the money will return back to the likes of Kotak Bank. An investor need to wait for such scenario which repeats after every few years.
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Exactly this. Whenever the market looks overheated and i dont want to risk money in small or mid caps i change my strategy to look for blue chips that are languishing. Finding a non cyclical blue chip which has fallen 20 plus percent in a year or has been stuck at the same price for 3 to 4 years is actually very rare. At the same time i dont want to remove money from my PF of small and mid caps so that leaves me with an option of sips only. In this phase i consider my PF to be my main source of returns and the large caps to just be a monthly option to store my cash wherein i dont want returns for even 2 to 3 years. Once i have a sufficient amount allocated i fully expect to beat the index over the long term ie 15 to 20 years which would be the holding period for these kind of companies
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Hi…Sorry for Barging but heard a phrase from one of the friend regarding the Kotak issue.
He said and I Quote “You need to determine whether Kotak Bank is suffering from Fever or Cancer. If you get that , you will get it”
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Any new update on investing sir? Its been a while to heard a word from you. What is your perspective about market condition these days? Will love to hear your views on market.