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10 Cr in 10 years

Discussion in 'Investment Analysis' started by caringvij, Sep 18, 2016.

  1. caringvij

    caringvij Active Member

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    I just wanted to discuss this topic in detail.
    For this I think the following points are very important.
    1.selection of stocks from diverse sectors
    2.buying in dips
    I just wanted to illustrate.
    Few months back I started serious thought about stock investing.
    I started analysis.
    I took three companies in paint industry
    1. Asian paints
    2. Berger paints
    3. Kansai nerolac

    I did some analsis with whatever knowledge

    I thought cmp of Asian paints very high. Berger movement is not great. I was sitting on the side lines. One morning nerolac cmp dipped to 264 . I purchased 10 + 16shares. Here also I am cautious I always purchase less at a time.
    Now the share price is 377.
    Buy in dips
    Patience is important
    Always buy in lesser lots
    During this process i also made some mistakes . Whatever other suggest may not suit us.
    Do your own cherry picking stocks at right time.
    I am thinking of portfolio
    With one stock from defence consumable, chemical, fmcg, auto, food etc
    I am giving list of moats given in value research wealth insight2016 SEpedition
    AIA engg, amararaja, Asian paints, Bajaj auto, Bajaj finance, Bajaj Corp, Bayer crop, Bharat electronics, Bosch, Britannia, Castro, Colgate, container Corp, crisis, cumins,dabur,divis,emami,essel pro,exide ,fag bearings, gsk consumer,hcl tech, Hdfc,hdfc bank, heromoto, Jul, igl, Indy,itc,mrf, navneet, nbcc, Nestle, Oracle fin, pidilite, power grid, p&g, Siemens ,skf ,sun pharma,sundaram fin ,tcs,titan ,zee,b ritania

    This list is not authentic
    This is value research views
    One has to fix there own filters.
    My filters for example
    1. Govt own no
    2. Polluting environment no
    3. Watch the price movement of stock, speed low then no

    We shouldtake all analyst views. But put own soul into it and cherry pick our stocks. If we do this
    I am optimistic to achieve 10 Cr in ten years




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    caringvij, Sep 18, 2016
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  2. shabbir

    shabbir Administrator Staff Member

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    I agree with everything but not

    Low speed or high speed, when you are trying to build wealth, the important aspect is the growth of the business and not the price of the stock in the exchanges.

    So let me show you example of Asian Paints. It has a CAGR or 10% for more than 2 decades and this is very consistent and not whooping 40% YoY once and then flat.

    So when trying to invest to build corpus of 10Crore you will need to set a benchmark of what should be your CAGR growth in your investment. I would prefer a 12% CAGR because you will easily find lot of business which has a CAGR of 10 to 15% and so their stock price will move along that line for sure.
     
    shabbir, Sep 18, 2016
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  3. caringvij

    caringvij Active Member

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    caringvij, Sep 18, 2016
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  4. Suresh_Sinha

    Suresh_Sinha Active Member

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    Enjoyed reading this. So valuable.
     
    Suresh_Sinha, Sep 18, 2016
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  5. caringvij

    caringvij Active Member

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    Probable filters for stocks
    1. CAGR (greater than 12perct)
    2. Debt free
    3. Not regulated by govt
    4.market capital
    5.five yr average ROE (above20 percent)
    6. PEG( less than 1.5)

    Any one has more filters you can suggest


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    caringvij, Sep 18, 2016
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  6. csesanthosh

    csesanthosh Member

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    Good one. Is it worth picking some small caps as well?
     
    csesanthosh, Sep 18, 2016
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  7. shabbir

    shabbir Administrator Staff Member

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    Instead of ROE I would prefer ROCE.
     
    shabbir, Sep 18, 2016
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  8. shabbir

    shabbir Administrator Staff Member

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    Always if you can pick a good one.
     
    shabbir, Sep 18, 2016
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  9. mdsafdarimam

    mdsafdarimam Active Member

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    glenmark is at vert attractive price. for trading & investment purpose it can be accumulated at cmp.
     
    mdsafdarimam, Sep 19, 2016
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  10. shabbir

    shabbir Administrator Staff Member

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    True.
     
    shabbir, Sep 20, 2016
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  11. yankeedin

    yankeedin Responder

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    I would like to add a point apart from the various points mentioned.

    We should definitely look at fundamentals as mentioned in this post, but I also feel that trend of the stock must also be looked at.
    There is no point buying a fundamentally good company if it's in down trend. In such a case, it can be bought on first sign of uptrend.
     
    yankeedin, Sep 20, 2016
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  12. shabbir

    shabbir Administrator Staff Member

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    Exactly and you can always see in my portfolio reports that I never invest based on fundamentals and it is technicals that provide me right entry levels.
     
    shabbir, Sep 21, 2016
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  13. nirajshah

    nirajshah Champion

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    Am I getting this wrong because I see all your investments are based on fundamentals only.

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    nirajshah, Sep 21, 2016
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  14. shabbir

    shabbir Administrator Staff Member

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    What I meant is only fundamentals and it will always be purchased when technicals align in the stock where fundamentals are right.
     
    shabbir, Sep 21, 2016
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