Haven’t found any stocks simple to understand in my 18+ month of investing experience. Everywhere I need to study it fundamentally, do research on the stock via collective effort at valuepickr to decide its investment-worthiness, develop conviction, track it continuously to understand how things are changing, and take suitable decision based on this.
Actually i have a very simple problem and guess most of the people who just started investing in stock might face the same.
The first stock i bought was Ajanta Pharma. I read the Annual report of 3 years, did some study of the balancesheet of last 10 years that i got from money control. Read the discussion by seniors on Valuepickr. Compared the P/E with companies of similar size and thought it was undervalued at a P/E of around 8 and bought the stock.
The stock has zoomed from there. Now i don’t know when to Sell it. It a situation similar to Abhimanyu in a “Chakravyuh” . Now my sell or not to sell decision will be totally dependent on the Balance Sheet and the discussion on Valuepickr.
The reason to find companies that have a simple business model was that i might be able to have a better conviction of when to get it and when to get out. I wanted to know how the seniors solved this issue when they were new.