Thanks for the response @Tar. Makes sense to not to rush and understand the dynamics first.
Also, wanted to know the china mutual fund that you mentioned it is the edelweiss greater china fund right in which you were investing before as well?
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Great insight Tar. So which all are the overlooked & unfollowed sectors as per you in the current scenario?
Thanks in advance
I think if you see Tariq sir’s tweet from today on agrichem, that would be a great sector to look at imo. @Tar could elaborate more. Also would like to ask you, which have been the top books you’ve read this year?
Hello Tariq,
Current development in cineline means promoter purchased stock @ Rs. 130 - is my understanding right.
You seem to have mastered this skill of finding the companies which are very early in their journey. It’s the time when no one is looking at those companies. But can you please help us understand how do you spot such opportunities. The companies that you mentioned in the example, usually don’t get screened because story hasn’t actually started playing so what is your framework to spot such opportunities?
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Sorry to butt in here,
One simple framework that you can use- relative strength vs the sectoral index or the broader index to filter stocks.
Filtered Gujarat Fluorochem this way last year, bought and sold (couldn’t ride the entire thing, but still did well)
Filtered bearing companies both ways- Rs+Fundamentally every Q was a banger. Bought Rolex rings using second order thinking. It’s a proxy.
Rs+Quarterly acceleration and just observation can lead to discoveries which we didn’t even think existed sometime ago in the markets.
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Often in the journey of SMID caps
There are these sweet phases of Quarterly acceleration and QoQ growth. First there’s disbelief (cheap pe). Then smart folks notice, eventually institutions come in (Pe re-rate happens) and then comes the dumb crowd (Euphoria). That’s the time to sell and be objective
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@Tar , @Worldlywiseinvestors , Very interesting discussion. Putting up something I read in The Next Apple book. He has beautifully listed various stages and reasons for buying…
Stocks are just like products – just like there are different buyers in the different stages of a
product cycle, there are different people buying at every stage of a typical growth stock’s price
cycle. There are innovators, early adopters, early majority, late majority and laggards. There are
various market participants with different philosophies and reasons to buy:
A) Some buy early, long before the crowd, because they understand or speculate about
the potential impact a company or an industry will have. Some buy when a company is
still losing money, but it has great potential, a great story behind it.
B) Some buy when a company breaks out to a new 52-week high from a proper base.
This could happen well before a company reports any earnings or an improvement in
growth. There are market participants who don’t care whether the company is making
plush bears or space rockets. As long as its stock price is making new highs, they ride it.
C) Some buy when there’s fear of missing out. Institutions have to put money to work,
and they have to choose assets to allocate to. At any given time, there are only a few great
growth stories in the market and thousands of institutions that want to own them. In this
case, P/E ratios often don’t matter. It is all about catching the next big thing. Trends
persist because supply is limited – early buyers are not eager to sell, and there are plenty
of new buyers that would like to participate. There’s a scarcity of great growth stories,
and Wall Street loves growth.
D) Some buy when the company reports its first profitable quarter.
E) Some buy when a company has had several quarters of high growth and has a group
of analysts that follow it.
F) Some buy when a company reaches a certain size.
G) Some buy because they are forced to cover their early/wrong short position. Every
trend needs doubters and skeptics. Otherwise, there wouldn’t be anyone left to buy. The
existence of large short interest has fueled not or one or two big trends.
H) Some buy when a certain market cap is reached – some large funds cannot participate
in companies with market caps under $5 billion because they cannot accumulate a
position that is big enough to make a difference in their returns. When a company gets
from $1 to 5 billion and it continues to deliver solid growth numbers, it will find a whole
new set of buyers
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wow,that summarises about everything
@Tar how did you develop a circle of competence in Pharma? / how do you develop a circle of competence in any sector? What’s your process like?
“Can you elaborate on the relative strength vs sectoral index or broader market index”
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@Tar I keep a track of China CSI 300 or FTSE China A50 Index on Tradingview.
Apart from the China index SIP - lumpsum is done as per these indices. But fundamentally i keep tracking the policy oriented news on Bloomberg news.
China is not an emerging economy per say but policy tracking gives some sense on the china index. Apart from this right now the RE property market is the key headwind that keep a track on. What do you suggest looking at to keep a tab on the developments in china. Much appreciated.
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Hi Tariq,
Could you please let us know why you chose Groww over others?
Did you do any due diligence on the security and compliance part? I want to understand how our money is secured just like a normal demat account like hdfc sec or zerodha in India? If I play devil’s advocate, what can go wrong in worst scenario?
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HI Tar… thanks for sharing. have been tracking CRWD for a while and still studying it. If i may ask, whats the entry price for you ? as i believe this is one of your recent buys. I do understand that its not an investment advice, and i will continue my own research. But for me to get a perspective on growth triggers and thesis… it has risen from its apr & may lows. I do understand that they may be setting up a tea in Israel and i was looking at seeing how ther execution pans out
Also in current recessionary headinds, what do you think are the earning triggers here
Thanks in advance
Hi Tar
Would you be able to check in your groww account if they support small cap stocks like avct for instance?
Is their brokerage for USA stocks zero as well
Thanks
Best
Edward
@Tar Can you throw some light on CALCOM, please? They recently crossed a 100Cr mark in the Last FY despite the multitude of challenges. Top line ie Sales grew increased by around 75% over last FY. PAT is Up 12% despite heavy cost pressures.
Their OFS was also a big success 5 times subscribed.
Seed investment here from MIT and Old bridge capital is also there who are marquee investors.
They got PLI in electronics too “Make in India”. It’s also a china+1 beneficiary.
As per ELCOMA - India will manufacture more than 75% of components locally and also
Increase exports substantially by 2025.
Chart wise RS is above the 0 line + above all major WEMAs + confluence of some TL and Resistance Breakouts.
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Don’t go with groww for us stocks, they don’t seem to support it. My experience -
- They don’t provide documents for compliance like documents for filing schedule FA and yearly PL statement.
- Bank transfer charges is high plus us-rupee pair that we get from typical banks(in my case kotak) is low.
- They have not integrated it yet in their apps nor they have worked towards reducing transfer charges and it has been more than a year atleast.
I have currently withdrawn all my money invested in groww us stocks mostly because they did not provide documents for filing FA schedule which is mandatory for all investors investing in foreign.
I use only indmoney now which I think it to be too cluttered plus last financial year(2021 to 2022), they provided the documents to file FA schedule and yearly PL statement in rupees, nearly 2 weeks before the deadline to all investors which delayed my ITR filing.
My recommendation, go for vested.
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What is your opinion on IndMoney for investing in US stocks?