Hi VP Members,
Kindly share your views and comments. Objective: Looking to double my investment every 5 years (from CMP), by selecting real winners and avoiding value traps. Learning about long term value investing, Open to book profits or Exit when necessary. (Conviction rate=CR)
I got very lucky by investing mostly during peak Covid19 Crisis (24 Mar to 10 Apr 2020).
Picked up few ideas from Value Picker (Thank you, u guys are real gems), invested after doing some innocent research.
Had 100 % conviction when i bought the Business, current status or decline in conviction is mainly because of the price appreciation, trend change or not being able to ascertain the real value and potential growth.
Not sure if my conviction is real or its just the anticipation of potential business doing great in future, because I have not attended any AGM’s, Concalls, or met anyone from the company to find out how business is actually doing. All investments are based on theoretical data available.
Being a part-time investor, I really think I should not own more than 10 stocks, even in future I may not be able to check how business are doing , always in dilemma (concentrated or diverse)
Eagerly waiting for your honest opinions.
(Please excuse if any typo’s or calculations mistakes).
My conviction rate is mainly derived based on my research by using screener.in, VP, company website, Google search on negatives and positive with management names, products, business models, competition and industry. Most importantly how much I already know about a particular company without any research (Eg… If i visited the company physically, serviced by them, spoke to the employees or the management, etc…)
I am from Andhra Pradesh, fortunate to know few things about Rain industries already and also get it at such a good price.
Being ex-employee of Sonata, I have more conviction because of the information and details I know.
Infosys: being from IT industry, its easy for me to understand most of the things they do in IT and ICT.
(kindly note: I am not recommending any stocks).
I heard of Kelly, but never read in detail, will do now. Thanks.
No comments as such on your stocks but tracking 20 companies (plus others which maybe on your watchlist) may be difficult for someone with a full-time job. Maybe you can rebalance based on your conviction and get rid off 1-3% kind of positions.
Maybe you can take some part profit and increase your dry powder for future.
You are looking for 15% CAGR. Risk free FD is giving around sub 6% returns (excluding small finance banks etc). It’s good to set high goals but we should be realistic at the same time. Even full-time market professionals are not able to achieve 15% CAGR kind of returns in these kind of markets.