Congrats! A lot of people get stuck on absolute percentage returns rather than how much money you make.
People have to understand that if if you have bought a stock at 10 and it has gone up to 50 , and if at that time you realize that your assessment is better than you previously thought the add up . The profit from the original investment won’t go anywhere , the only thing changes is the percentage returns .
It’s better to have a 3 bagger with 100 rupees profit than a 10 bagger with 30 rupees profit.
Averaging up a and concentrating on a conviction stock has been a key part of my investing strategy.
I have bought KEI industries at 4-5 times the original purchase price of 220.
=Portfolio is 93% up of invested amount and 13% down from all time high
=Investment is done in staggered manner from sept 2017 to uptil today with buy and hold approach
(HOLDING OLD STOCKS AND BUYING NEW STOCKS FROM FRESH CAPITAL)
Yes absolutely, this is the experience we get after investing for a while…investing huge amounts of money and making a study CAGR is better than having one multibagger. Over a period of time, the former approach creates wealth and reduces mistakes.
Excellent video Pragnesh. Very well presented case for Equity Investing over other asset classes. I also liked the way how you emphasised on importance of patience and behaviour.
Any recent buys? Would want to enter the market now. Any suggestions?
What’s your point of view on NHPC? I have heavily invested in NHPC when it was trending at an ATH. While the monthly MACD indicator was suggesting otherwise, still went in to ride on the renewable sector wave. Now the stock has corrected more than 10% after my entry. What will be your suggestion?
Since last 6 months ,i m buying stocks which i already own in significant amount.I dont know whether i m obsessed with my own stocks or i dont want to study other stocks in my busy schedule.
At present, i am thinking that
1…If i buy other stocks, i will have very diversified portfolio.
2…I bought stocks (After in depth study) in hope of
multibagger return over long period of time. Most stocks have financially performed well till now.I think they have long journey to go from here.Because small company remains small even after becoming 3 times of its mcap.
3…So i buy my own stocks which have at present
A…mcap<5000 cr
B…P E ratio <30.
I may be wrong in my strategy of buying stock after it has become 3 times or 4 times.(like in apcotex,acrysil paushak,beta and many others)
Only time will tell
Lets see.
Hi @Pragnesh, it is interesting that you mention you bought after a stock becomes 3 or 4 bagger. This indicates your deep conviction and also the amount of research you may have done on these companies. You obviously think these companies still have a long run way ahead of them or there are earning triggers lined up. If possible, can you post a brief thesis on these here on the companies you recently added. This will give us an insight into your thought process.
Have you ever seen any single fund that invests 99% of its asset in only one group of companies?
Probably these investments(you can understand owner of these funds) had made stocks illiquid and some adnai stocks have given return close to 5000%(50 times) in last 5 yrs
And second thing valuation!
P /e ratio around 300 in most adani companies.
Never buy companies having P/e ratio>50, you may lose few opportunities but you will save youself a lot of grief and your money.
Adani companies may have good businesses but something is definately cooking.
