Well many novice investor like me have a clear confusion while choosing a stock even it has qualified on various aspect like financial,valuation,business etc because I not only lack experience but also for an individual it is not possible for me to do the entire market or industry research all the time so my investment ideology is very simple is to follow the Gurus who ever been there in the market for decades.
So my fishing of stocks is as follows :-
1. Follow some legendary investors closely. My personal favorites are Vijay Kedia, Jatin Khemani, Rahul Sararogi, Prashant Jain, Ramadeo Agarwal, Prem Wasta, Sourav Mukherjeea ... considering the veteran like Rakesh Jhunjunwala apart I also like Basant Maheswari and Parinju Vijya a lot and two unknown advisor blogger like aceinvestor and smallcapvaluefind . Apart from that I trusted CRISIL reports and Morgan Stanly value buys into indian equity. And last but not the least Value Picker academy for discussion.
2. So my theory is simple I follow the suggestion or activity by the above Gurus . Validate the financial based on theory suggested by Prof Sanjay Bakshi and Dr Vijay Mallik . Avoid stocks which does not fit the criteria .
3. Avoid leveraged stocks,commodity stocks, capital intensive stocks, wrong capital allocation , wrong product mix , high raw material cost, high payable days businesses.
4. Try to buy mid,small or micro cap among them with a good margin of safety and obviously if it is a secular story and being a market leader in a under penetrated market.
Yup that's it nothing more. Also one must thing I follow is to never do experiment with money which is lesson I have learn from the market after doing too much experiment. You must separate your learning and earning apart. If you have found any good stock over screener or from any other sources you can always follow or analyze it in your leisure time but must not do the mistake to invest in it.
Key thins to follow :-
1. If any good suggestion I have found by the Gurus I simply run my customized screener excel. Then do a bit of analysis to make them fit into my criteria. But definitely not more than 1-2 hr I will spend on them. Also have done few checks on accounting fraud from the AR , the auditor reputation, accounting policies, equity dilution trend etc.
2. If the discussion is available on VP it will be more than good. I put a watchlist to it. Also add Google Alert on that company. Add it to my screener watch list.
3. Search for CRISIL or CARE rating and report. Also find if other stakeholders are good enough[like Morgan Stanly].
4. Follow quarterly results and reports on the business.
So my fishing of stocks is as follows :-
1. Follow some legendary investors closely. My personal favorites are Vijay Kedia, Jatin Khemani, Rahul Sararogi, Prashant Jain, Ramadeo Agarwal, Prem Wasta, Sourav Mukherjeea ... considering the veteran like Rakesh Jhunjunwala apart I also like Basant Maheswari and Parinju Vijya a lot and two unknown advisor blogger like aceinvestor and smallcapvaluefind . Apart from that I trusted CRISIL reports and Morgan Stanly value buys into indian equity. And last but not the least Value Picker academy for discussion.
2. So my theory is simple I follow the suggestion or activity by the above Gurus . Validate the financial based on theory suggested by Prof Sanjay Bakshi and Dr Vijay Mallik . Avoid stocks which does not fit the criteria .
3. Avoid leveraged stocks,commodity stocks, capital intensive stocks, wrong capital allocation , wrong product mix , high raw material cost, high payable days businesses.
4. Try to buy mid,small or micro cap among them with a good margin of safety and obviously if it is a secular story and being a market leader in a under penetrated market.
Yup that's it nothing more. Also one must thing I follow is to never do experiment with money which is lesson I have learn from the market after doing too much experiment. You must separate your learning and earning apart. If you have found any good stock over screener or from any other sources you can always follow or analyze it in your leisure time but must not do the mistake to invest in it.
Key thins to follow :-
1. If any good suggestion I have found by the Gurus I simply run my customized screener excel. Then do a bit of analysis to make them fit into my criteria. But definitely not more than 1-2 hr I will spend on them. Also have done few checks on accounting fraud from the AR , the auditor reputation, accounting policies, equity dilution trend etc.
2. If the discussion is available on VP it will be more than good. I put a watchlist to it. Also add Google Alert on that company. Add it to my screener watch list.
3. Search for CRISIL or CARE rating and report. Also find if other stakeholders are good enough[like Morgan Stanly].
4. Follow quarterly results and reports on the business.
