Restoring Traders/Investors Faith into Investing
- Thread starter Einstein
- Start date
- Tags portfolio tracker value investing warren buffett
Buy Richa Industries Ltd (BSE: 532766)
CMP: 41
FY14 Particulars:
Sales: 276.50 Crores
Net Profit: 9.41 Crores
EPS: 4.20
Key Takeaways:
Company engaged in Textile and Pre-Engineered-Building Business, PEB used in factories,warehouses,coldstorages,logistic go-downs,plants,manufacturing facilities.
Make In India and Mass Housing will increase revenue of PEB segment sharply and Richa Industries Ltd is a top name for PEB in India.
Prom Holding: 57.38%
P/E Ratio: 8.29
CMP: 41
FY14 Particulars:
Sales: 276.50 Crores
Net Profit: 9.41 Crores
EPS: 4.20
Key Takeaways:
Company engaged in Textile and Pre-Engineered-Building Business, PEB used in factories,warehouses,coldstorages,logistic go-downs,plants,manufacturing facilities.
Make In India and Mass Housing will increase revenue of PEB segment sharply and Richa Industries Ltd is a top name for PEB in India.
Prom Holding: 57.38%
P/E Ratio: 8.29
How is this combo for stocks:
- Page (investment instead of opening clothes shop)
- Asian Paints (investment instead of opening paint shop)
- Sun Pharma (investment instead of opening medical center)
I guess it would give better returns than mutual fund.
I keep finding out how little I know the more I try to learn how to invest.
- Page (investment instead of opening clothes shop)
- Asian Paints (investment instead of opening paint shop)
- Sun Pharma (investment instead of opening medical center)
I guess it would give better returns than mutual fund.
I keep finding out how little I know the more I try to learn how to invest.
EXACTLY! Keep thinking like this! This is the exact way to think about stocks and you should keep this mentality while analysis stocks. Now A few months ago some members tried to imply something and put words in my mouth. My one single holy grail tip on learning how to invest is to analyse micro-cap stocks.
They have suspicious books, (will help you recognize fraud and book cooking)
They dont have media attention ( will help you get in on the action rather than read reports and will have to gather all the information yourself)
They are highly volatile ( will help you learn to manage risk or go bankrupt)
They have dubious and un-cooperative managers ( Will help increase you social skills in talking to corporate representatives and get more open while getting information)
How do you practice this you ask?
Open a list of micro-cap stocks and strike them off one by one.
I have nothing more to offer.
They have suspicious books, (will help you recognize fraud and book cooking)
They dont have media attention ( will help you get in on the action rather than read reports and will have to gather all the information yourself)
They are highly volatile ( will help you learn to manage risk or go bankrupt)
They have dubious and un-cooperative managers ( Will help increase you social skills in talking to corporate representatives and get more open while getting information)
How do you practice this you ask?
Open a list of micro-cap stocks and strike them off one by one.
I have nothing more to offer.
Thank you for the encouragement Mr.G
My current strategy is to invest in high growth, market leaders of sectors that have long term potential with least risk of low demand.
I'm actually thinking of removing Asian Paints because it has less than 25% growth. It's last average 5 year sales growth wasn't even above 25% either.
2013 made it clear that investment related companies are at risk of low demand scenarios (Gruh would have been on the list otherwise. No point in opening housing loan lending center as well since my annual earnings will only be a small percentage after debt repayment unless it is micro finance like SKS whose scrip performance is something that needs further investigation.)
Cera is an option but I have 3 things against it:
- Poor scrip performance in 2008 (I'm not sure if there was 20% + sales growth in 2008. Getting 2007 and 2008 sales data is harder now that 2007 and 2008 was more than 5 years ago.)
- Housing related scrips seem to be at risk of demand cycles. If Cera did not lose more than 33% of value in 2008, I would have been more convinced to invest in the scrip.
- I only recently thought of opening home related stores after seeing chart performance in cera, kajaria and supreme.
PGHH is one stock I'd like to get in to (wish it was 2011) but current growth rates aren't high enough. A 15% sales growth seems to create more mediocre performance while 25% plus sales growth leads to above average performance if that particular sector has long term potential. I'm currently monitoring another forum which has more details of management quality of companies but I guess I should spend some time learning how to analyze management quality myself.
I'm currently aiming at only purchasing a few high quality stocks. Not looking for the best possible returns each year but best long term returns over my lifespan.
PS. After looking at GlaxoSmith's performance and accounting numbers, I have lost interest in PGHH. PGHH's performance could be due to optimistic thinking which seemed to be a growth driver in 2014.
My current strategy is to invest in high growth, market leaders of sectors that have long term potential with least risk of low demand.
I'm actually thinking of removing Asian Paints because it has less than 25% growth. It's last average 5 year sales growth wasn't even above 25% either.
2013 made it clear that investment related companies are at risk of low demand scenarios (Gruh would have been on the list otherwise. No point in opening housing loan lending center as well since my annual earnings will only be a small percentage after debt repayment unless it is micro finance like SKS whose scrip performance is something that needs further investigation.)
Cera is an option but I have 3 things against it:
- Poor scrip performance in 2008 (I'm not sure if there was 20% + sales growth in 2008. Getting 2007 and 2008 sales data is harder now that 2007 and 2008 was more than 5 years ago.)
- Housing related scrips seem to be at risk of demand cycles. If Cera did not lose more than 33% of value in 2008, I would have been more convinced to invest in the scrip.
- I only recently thought of opening home related stores after seeing chart performance in cera, kajaria and supreme.
PGHH is one stock I'd like to get in to (wish it was 2011) but current growth rates aren't high enough. A 15% sales growth seems to create more mediocre performance while 25% plus sales growth leads to above average performance if that particular sector has long term potential. I'm currently monitoring another forum which has more details of management quality of companies but I guess I should spend some time learning how to analyze management quality myself.
I'm currently aiming at only purchasing a few high quality stocks. Not looking for the best possible returns each year but best long term returns over my lifespan.
PS. After looking at GlaxoSmith's performance and accounting numbers, I have lost interest in PGHH. PGHH's performance could be due to optimistic thinking which seemed to be a growth driver in 2014.
Last edited:
Asian paints is one of the best business models in my list, don't just sell it because the sales growth are mediocre, infact this mediocre sale is still very impressive to me. but there was a reason why I chose nerolac instead of asian paints in my 2014 portfolio....
I think buffett would like glaxosmith, its a business with downside is less.. pricewise there are better options...
I think buffett would like glaxosmith, its a business with downside is less.. pricewise there are better options...
Similar threads
-
The untold truth about why most traders fail
- Started by TheSafeTrader
- Replies: 12
-
-