Hello, I am Rishabh Jain, a 21-year-old investor who began my journey in the stock market in December 2021. Since high school, I have been captivated by the world of stock markets, and my passion for investing was further fueled when my father gave me a book to read during the COVID-19 pandemic. The book was “Charlie Munger: The Complete Investor” by T. Griffin. My father, being a brilliant investor himself, has been instrumental in guiding me through this journey. I have delved into numerous books on investing and personal finance, exploring the wisdom of legendary investors such as Charlie Munger, Warren Buffet, and Howard Marks. I have developed a habit of reading extensively, immersing myself in everything related to investing and finance. I keep myself informed by reading publications like the Economic Times, studying investor presentations, analyzing research reports, and poring over annual reports of companies that catch my interest.
Learning and Building:
I have completed my B.Com. degree and currently pursuing CA. I have been fortunate enough to receive a monthly sum from my father, which I invest diligently. I actively engage in discussions with him, seeking to extract as much knowledge as possible. I adopt a systematic investment plan (SIP) approach to invest in direct stocks every month. Since starting my portfolio in December 2021, I have achieved an absolute return of 30%.
When it comes to selecting investments, I focus on companies that exhibit high and consistent return on equity (ROE) and return on capital employed (ROCE). To ensure the reliability and stability of my investments, I adhere to some criteria :
Companies with little to no debt
Promoters with minimal or no pledged holdings.
A proven track record of profitability for four or five consecutive years.
Consistency in both sales and profit figures.
Companies trading at historically low price-to-earnings, price-to-book, and price-to-sales ratios.
Understanding of margins w.r.t business cycles
Businesses that I can understand through in-depth research, including analyzing company websites, conference calls, and investor presentations.
Management teams with untarnished ethical records.
I follow these principles, but I am not limited to them.
Maintaining a concentrated portfolio of fewer than 15 stocks, I firmly believe in the power of long-term investments and resist the urge to engage in frequent buying and selling. I avoid over-analyzing things such as what car the promoter is driving or how court actions against the promoter would affect the company. According to my investment strategy, I do not invest in hot stocks, even if they are trading at low or attractive valuations. I have not tested future and options and will not do so in the foreseeable future. Warren Buffet, Charlie Munger, and Howard Marks have taught me a lot about value investing. I’ll call myself a conservative investor rather than a value investor because I’m not sure what actual or real value is. I haven’t gotten around to considering momentum investing. Also, I know a thing or two about technical analysis, but I never use it while buying or selling.
As a novice in the investing world, I am acutely aware that there is much more to learn. The last 2 - 3 years have been wonderful for the markets, so I’d like to remain humble and not get carried away by my profits. I humbly seek the blessings, advice, and suggestions of experienced investors as I continue to expand my knowledge in areas such as business analysis, stock valuation, and other investment strategies.
I currently own shares of Aavas Financers, Mayur Uniquoters, M&M Financial Services, and Jindal Steel. A few months ago, I sold Megastar Foods, MTAR, Greenpanel, Arvind Ltd., and Greenpanel to minimize the number of equities in my portfolio.
I am now researching the banking and steel industries. Aavas and M&M Financial Services caught my interest. I’ve had a long-term investment in Jindal Steel. Mayur Uniquoters is a firm that I found simple to grasp, and I have high hopes for its growth.