Restoring Traders/Investors Faith into Investing

whisky

Well-Known Member
#21
Warren Buffet is an investor. The worlds richest investor that too. His favorite holding period is for life. He once said, Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years.
I agree but you have to book profit at some point of time or may take exit if that business is in problem, an example Airline business in India, better to exit whether it's kingfisher or others all are in pain.
 

jamit_05

Well-Known Member
#22
He made 40% per annum on his good investments. some years he made more then 100% some year he was in negative return like in 2008. but he never sold his investments and recover the losses, not only recover the loss but also made a decent gain on them,

Berkshire hathway ticker was down 50% top tick to down in 2009 jan. but now its past, his actual returns was/is 40% per annum by average. bty i don't have any record of his bad investments, all were accurate investments, good companies @ cheap price.

well i think that positional trading is a speculation, buying cyclical companies, buying companies because there is change in interest rate, rupee etc. so I really cannot say anything on this.

what I have learned from my extensive research on his holding is that, one should invest into a businss like you'll never have to sell it again, examples are ITC, Asian Paint, Pidilite, page industries, marico and so on.. these companies are compounding itself just like coca-cola, walt Disney etc (buffett's holding).

I have a list of 150+ companies and im done with 25% of them in last 1 week. once done, i will start posting my analysis which i hope should help others in their investments.
After a point, analysis is not the crux. In fact, to be a successful investor even if one follows the Magic Formula (Joel Greenblatt's) one should be fine. (It is basically a smarter and a more dynamic version of Index Investing.)

The trick, however, is in having the knack to pick those 10 scrips from the list of 150 Companies that are going to make your life. Even the Index investors will probably earn 15 CAGR in India. Can our selection earn 30%?

I look forward to seeing which and why you select the top 15 companies.

Regards.
 

Mr.G

Well-Known Member
#24
I agree but you have to book profit at some point of time or may take exit if that business is in problem, an example Airline business in India, better to exit whether it's kingfisher or others all are in pain.
See we work on fundamentals. Now the precise thing is that once the fundamentals change we exit as fast as possible.

We dont enter unless the business is excellent. If it becomes a good business we exit.

Every good fundamental investor would have exited satyam and kingfisher long ago.

But no one could have predicted the **** that happened with FINTECH. We have to face it, we have black swans events like you guys too.

What we do is that we value a business, We first find a good business and then we value it! Most people dont know about the second step, but for most of us it is more important and difficult than the first.

Then we buy below the value and sell at par or above it. That is value investing in a nutshell.
 

rh6996

Well-Known Member
#26
As suggested by rkkarnani, I have bought 100 Repco Home finance at 174.40 when it was listed for holding it for min. 5/7 year perspective and have added 80 more @299.80 average ! Shall add more as and when funds permit. Your comments on it please.
 

Einstein

Well-Known Member
#28
Portfolio: 2013



I made this portfolio last year purely based on my fundamental research, results were really good but this portfolio was not able to beat the S&P 500 which surged 35%. however this is nifty...

Average return includes profit/loss of some other stock which i had removed because of mistake I made in fundamental analysis.
luckily i learned alot from my mistake which should not be repeated in 2014 portfolio which I am going to post with stock details soon.
 
#29
Einstein--This is very helpful and a good initiative taken up by you to educate investors like us. I have a few questions here...sometimes even if a company is fundamentally good but market does not reward it.

I know on longer run price does catch up with fundamentals but in order to churn lets say 25-30% avg return every year how do we choose stocks???

Do we chase momentum and select fundamentally good stocks from those sectors? if yes how do we identify momentum?

Thanks in advance...looking forward to your list and analysis...
 

Einstein

Well-Known Member
#30
so question 1 is why price does not goes up for a fundamentally good company.
answer is simple, there has been a mistake in valuation. in short term... lets say 2 years, market will be a voting machine people will do what other's are doing but after 2 years if the price does not match the fair value price, then your analysis is wrong.

2. how to choose stock which can provide returns of 40%+ per annum.
The purpose of this thread is to increase the knowledge about value investing, which according to me is the only tested way of making money. so start learning fundamental analysis specially value investing. it is better to teach someone how to catch fish, rather then giving him fish every day.
 
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