8th September 2016

Purchase Pidilite Industries in the closing hours of the trade on 8th September and did a big blunder of placing an order of 2000 units instead of 200 units that I wanted to buy in the first shot.

I wanted to sell some units today but did not had the right price to be selling and so not sure how much will I hold moving forward but have plans to hold close to 500 units for sure.

I chose pidilite because in the market correction from march 2015 to Feb 2016 when Nifty hit a high of 9119 and low of 6825, the stock had only sideways movement between 640 and 520.


Clearly indicating that even if there is a correction in the market, stock will not correct to the extent the market would correct.

The best thing I like about this stock is, the company's annual report on page 26 they have financials for last 10 years where they have managed CAGR of 16.35% for a decade. As a business person I envy that number because you can have awesome business that works for few years but for a decade thats nothing but awesome.

Valuations will be high for such companies and they were not low in March 2015 either and yet we did not see correction in this stock when market corrected for almost 11 months forming a bottom. So this will be a much safer bet in the current market scenario when Nifty is back to 9000 again.

 

I did not wish to purchase 2000 units but only wanted 200 units. I purchase in small lots only and you can see that in all my previous accumulations of close to 50k per month but as I have booked some profit in my earlier investments, I am putting the same cash in stock in big quantities else I also don't do it that way. Accumulation is the right path and I plan to invest 5L in this stock at the most as of now. Will have to sell off some part of very soon.

 

Spot on and I added position around 600 in my wife's account.