Lean AI Leaders
Category: Wealth creation
Delhi vs Bengaluru
Delhi pricked the Bengaluru bubble
For a long time, most people agreed that if you wanted to start a tech company, the “default” place to do it was Bengaluru. It had everything that young startups wanted—a vibrant city, access to tech talent, VCs, and even great weather. For over a decade, some of the most notable startups emerged from Bengaluru. Everyone believed this was an advantage, i.e., the ecosystem made these companies stronger, resilient, and more innovative.
But of late… we aren’t so sure about that. Even though most people in Bengaluru believe that they are doing exciting, innovative work, it’s the startups from another city…
Read more at
https://the-ken.com/story/delhi-pricked-the-bengaluru-bubble/
ALPHA LEARNERS – Mentorship Program Jul-24
With great pleasure and best wishes from all of you, we are delighted to launch new batch of
ALPHA Mentorship Art and Science of Investing (basics to advanced)
to make you Independent in stock markets
Make your journey faster in Stock market (by 3 to 4yrs) with ALPHA LEARNERS Mentorship program
Number of batches and batch size is very very limited considering live classes
A PROGRAM TO MAKE YOU LEARN AND EARN
This is a unique live program for 2.5years approx. with live classes for approx. 5-6 months (on weekends) and 2 years of handholding further
Where one can learn necessary
Fundamental Qualitative concepts to understand the things which create wealth in long run–like how to evaluate management, how to evaluate certain corporate actions, how to understand direction of company
Fundamental Quantitative concepts to substantiate what we have seen qualitatively, understanding ratios and numbers like margins and numbers like EBITDA, PAT, OPM, Financial Ratio, Valuation ratios PE, PB, PS, EVEBITDA, ROE, ROCE, Debt, equity and many other deep ratios to understand whether stock at right price or not
Learn about cost of capital, working capital cycle, inventory turnover, asset turnover, interest coverage, pledging(good or bad)
Why Dividend is good or bad
How long we can hold a stock or when to leave the stock
Capex, Opex and how it impacts and when it impacts
Why certain high pe stocks keep on running and low pe stocks remain down
Red flags and green flags
Necessary Technical aspect to make our entry and exit better in stocks ,oscillators and unique indicators including SMA, DMA, RSI, MACD, EMA, Trends, SL, , different time frames and some UNIQUE TECHNICAL INDICATORS NOT TAUGHT by ANYONE
Technical aspect and understanding of Price Volume action, candlestick patterns ( bullish, bearish, single, double, triple patterns)
Technical understanding of Targets from different patterns, How to look for patterns and when to look for which pattern
Resources to analyze faster to analyze more companies faster
Understand Contrarian, Cyclical, Value and Growth investing
Bucket and GRADE Framework
Business Moats understanding–how to categorize moats, what is real moat, what is fake moat
Exit Strategies in stocks
Reading Balances sheet in simple way to analyze results and issues to make quick exits or to do pyramiding after results
Reading Cash flows in simple way to understand where money is being moved in company
Reading Quarterly, half yearly, yearly results and interpreting them better
Tricks and Checklist for faster analysis of Annual Reports to help us all understand whether to deep dive or not
Conf-call understanding, Transcripts Concepts and Tricks to understand faster
Big money moves aspect to understand where money is moving
Concepts and tricks on various intricacies in stock market
Understanding about primary, secondary market
Also get a KNOWHOW on
Checklist for stocks to identify red flags faster
Checklist for deep dive into selected stocks
How to build Portfolio for Short term
How to build Portfolio for Long term
How to find Multi bagger stocks
How to avoid pitfalls in market
When to exit stocks
Free lifetime learning through a Whatsapp Community (apart from Program content) & Bonus Sessions
Join like minded people to interact with on CHARTS, Domain KNOWLEDGE, Sector Expertise etc
This is a program YOU CAN NOT AFFORD TO MISS
Other Details
Time period 2.5 Years
Starting time 21st jul24
Live classes on Sunday Morning/afternoon mostly
Time duration of each lecture –approx 1.5 to 2 Hrs
Time period of live classes 6 months approx.
Each session recorded and shared with participants
Next 2 years handholding to close the GAPS in knowledge with Handholding, Quizzes, Exercises, Bonus sessions, Charts, Fundamentals and Business analysis from time to time
Be ready to WELCOME 2025 with Knowledge
Let 2024 be the start of your journey towards INDEPENDENCE IN STOCK MARKETS
ACT NOW for your Independence
FEEDBACK By ALPHA LEARNERS
ACT NOW for your Independence
CONTACT us
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
ALPHA LEARNERS – Mentorship program Apr-24
With great pleasure and best wishes from all of you, we are delighted to launch new batch of
ALPHA Mentorship Art and Science of Investing (basics to advanced)
to make you Independent in stock markets
Make your journey faster in Stock market (by 3 to 4yrs) with ALPHA LEARNERS Mentorship program
Number of batches and batch size is very very limited considering live classes
A PROGRAM TO MAKE YOU LEARN AND EARN
This is a unique live program for 2.5years approx. with live classes for approx. 5-6 months (on weekends) and 2 years of handholding further
Where one can learn necessary
Fundamental Qualitative concepts to understand the things which create wealth in long run–like how to evaluate management, how to evaluate certain corporate actions, how to understand direction of company
Fundamental Quantitative concepts to substantiate what we have seen qualitatively, understanding ratios and numbers like margins and numbers like EBITDA, PAT, OPM, Financial Ratio, Valuation ratios PE, PB, PS, EVEBITDA, ROE, ROCE, Debt, equity and many other deep ratios to understand whether stock at right price or not
Learn about cost of capital, working capital cycle, inventory turnover, asset turnover, interest coverage, pledging(good or bad)
Why Dividend is good or bad
How long we can hold a stock or when to leave the stock
Capex, Opex and how it impacts and when it impacts
Why certain high pe stocks keep on running and low pe stocks remain down
Red flags and green flags
Necessary Technical aspect to make our entry and exit better in stocks ,oscillators and unique indicators including SMA, DMA, RSI, MACD, EMA, Trends, SL, , different time frames and some UNIQUE TECHNICAL INDICATORS NOT TAUGHT by ANYONE
Technical aspect and understanding of Price Volume action, candlestick patterns ( bullish, bearish, single, double, triple patterns)
Technical understanding of Targets from different patterns, How to look for patterns and when to look for which pattern
Resources to analyze faster to analyze more companies faster
Understand Contrarian, Cyclical, Value and Growth investing
Bucket and GRADE Framework
Business Moats understanding–how to categorize moats, what is real moat, what is fake moat
Exit Strategies in stocks
Reading Balances sheet in simple way to analyze results and issues to make quick exits or to do pyramiding after results
Reading Cash flows in simple way to understand where money is being moved in company
Reading Quarterly, half yearly, yearly results and interpreting them better
Tricks and Checklist for faster analysis of Annual Reports to help us all understand whether to deep dive or not
Conf-call understanding, Transcripts Concepts and Tricks to understand faster
Big money moves aspect to understand where money is moving
Concepts and tricks on various intricacies in stock market
Understanding about primary, secondary market
Also get a KNOWHOW on
Checklist for stocks to identify red flags faster
Checklist for deep dive into selected stocks
How to build Portfolio for Short term
How to build Portfolio for Long term
How to find Multi bagger stocks
How to avoid pitfalls in market
When to exit stocks
Free lifetime learning through a Whatsapp Community (apart from Program content) & Bonus Sessions
Join like minded people to interact with on CHARTS, Domain KNOWLEDGE, Sector Expertise etc
This is a program YOU CAN NOT AFFORD TO MISS
Other Details
Time period 2.5 Years
Starting time Jan24
Live classes on Sunday afternoon mostly
Time duration of each lecture –approx 1.5 to 2 Hrs
Time period of live classes 6 months
Each session recorded and shared with participants
Next 2 years handholding to close the GAPS in knowledge with Handholding, Quizzes, Exercises, Bonus sessions, Charts, Fundamentals and Business analysis from time to time
Have a Resolute NEW YEAR 2024
Let 2024 be the start of your journey towards INDEPENDENCE IN STOCK MARKETS
ACT NOW for your Independence
FEEDBACK By ALPHA LEARNERS
ACT NOW for your Independence
CONTACT us
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
ZERO
Luxury collectibles trend
UHNI planning for Environment
Ultra HNI
ALPHA LEARNERS – Mentorship program Jan-24
With great pleasure and best wishes from all of you, we are delighted to launch new batch of
ALPHA Mentorship Art and Science of Investing (basics to advanced)
to make you Independent in stock markets
Make your journey faster in Stock market (by 3 to 4yrs) with ALPHA LEARNERS Mentorship program
Number of batches and batch size is very very limited considering live classes
EARLY BIRD DISCOUNTS if one Enrols before 25th DEC 2023
A PROGRAM TO MAKE YOU LEARN AND EARN
This is a unique live program for 2.5years approx. with live classes for approx. 5-6 months (on weekends) and 2 years of handholding further
Where one can learn necessary
Fundamental Qualitative concepts to understand the things which create wealth in long run–like how to evaluate management, how to evaluate certain corporate actions, how to understand direction of company
Fundamental Quantitative concepts to substantiate what we have seen qualitatively, understanding ratios and numbers like margins and numbers like EBITDA, PAT, OPM, Financial Ratio, Valuation ratios PE, PB, PS, EVEBITDA, ROE, ROCE, Debt, equity and many other deep ratios to understand whether stock at right price or not
Learn about cost of capital, working capital cycle, inventory turnover, asset turnover, interest coverage, pledging(good or bad)
Why Dividend is good or bad
How long we can hold a stock or when to leave the stock
Capex, Opex and how it impacts and when it impacts
Why certain high pe stocks keep on running and low pe stocks remain down
Red flags and green flags
Necessary Technical aspect to make our entry and exit better in stocks ,oscillators and unique indicators including SMA, DMA, RSI, MACD, EMA, Trends, SL, , different time frames and some UNIQUE TECHNICAL INDICATORS NOT TAUGHT by ANYONE
Technical aspect and understanding of Price Volume action, candlestick patterns ( bullish, bearish, single, double, triple patterns)
Technical understanding of Targets from different patterns, How to look for patterns and when to look for which pattern
Resources to analyze faster to analyze more companies faster
Understand Contrarian, Cyclical, Value and Growth investing
Bucket and GRADE Framework
Business Moats understanding–how to categorize moats, what is real moat, what is fake moat
Exit Strategies in stocks
Reading Balances sheet in simple way to analyze results and issues to make quick exits or to do pyramiding after results
Reading Cash flows in simple way to understand where money is being moved in company
Reading Quarterly, half yearly, yearly results and interpreting them better
Tricks and Checklist for faster analysis of Annual Reports to help us all understand whether to deep dive or not
Conf-call understanding, Transcripts Concepts and Tricks to understand faster
Big money moves aspect to understand where money is moving
Concepts and tricks on various intricacies in stock market
Understanding about primary, secondary market
Also get a KNOWHOW on
Checklist for stocks to identify red flags faster
Checklist for deep dive into selected stocks
How to build Portfolio for Short term
How to build Portfolio for Long term
How to find Multi bagger stocks
How to avoid pitfalls in market
When to exit stocks
Free lifetime learning through a Whatsapp Community (apart from Program content) & Bonus Sessions
Join like minded people to interact with on CHARTS, Domain KNOWLEDGE, Sector Expertise etc
This is a program YOU CAN NOT AFFORD TO MISS
Other Details
Time period 2.5 Years
Starting time Jan24
Live classes on Sunday afternoon mostly
Time duration of each lecture –approx 1.5 to 2 Hrs
Time period of live classes 6 months
Each session recorded and shared with participants
Next 2 years handholding to close the GAPS in knowledge with Handholding, Quizzes, Exercises, Bonus sessions, Charts, Fundamentals and Business analysis from time to time
Have a Resolute NEW YEAR 2024
Let 2024 be the start of your journey towards INDEPENDENCE IN STOCK MARKETS
ACT NOW for your Independence
FEEDBACK By ALPHA LEARNERS
EARLY BIRD DISCOUNTS if one Enrols before 25th DEC 2023
ACT NOW for your Independence
CONTACT us
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
ALPHA LEARNERS – Mentorship program Oct-23
With great pleasure and best wishes from all of you, we are delighted to launch new batch of
ALPHA Mentorship program
Art and Science of Investing (basics to advanced)
to make you Independent in stock markets
Make your journey faster in Stock market (by 3 to 4yrs) with ALPHA LEARNERS Mentorship program
Number of batches and batch size is very very limited considering live classes
A PROGRAM TO MAKE YOU LEARN AND EARN
This is a unique live program for approx. 5 months (on weekends) and 2 years of handholding further, Where one can learn necessary
Fundamental Qualitative concepts to understand the things which create wealth in long run–like how to evaluate management, how to evaluate certain corporate actions, how to understand direction of company
Fundamental Quantitative concepts to substantiate what we have seen qualitatively, understanding ratios and numbers like margins and numbers like EBITDA, PAT, OPM, Financial Ratio, Valuation ratios PE, PB, PS, EVEBITDA, ROE, ROCE, Debt, equity and many other deep ratios to understand whether stock at right price or not
Learn about cost of capital, working capital cycle, inventory turnover, asset turnover, interest coverage, pledging(good or bad)
Why Dividend is good or bad
How long we can hold a stock or when to leave the stock
Capex, Opex and how it impacts and when it impacts
Why certain high pe stocks keep on running and low pe stocks remain down
Red flags and green flags
Necessary Technical aspect to make our entry and exit better in stocks ,oscillators and unique indicators including SMA, DMA, RSI, MACD, EMA, Trends, SL, , different time frames and some UNIQUE TECHNICAL INDICATORS NOT TAUGHT by ANYONE
Technical aspect and understanding of Price Volume action, candlestick patterns ( bullish, bearish, single, double, triple patterns)
Technical understanding of Targets from different patterns, How to look for patterns and when to look for which pattern
Resources to analyze faster to analyze more companies faster
Understand Contrarian, Cyclical, Value and Growth investing
Bucket and GRADE Framework
Business Moats understanding–how to categorize moats, what is real moat, what is fake moat
Exit Strategies in stocks
Reading Balances sheet in simple way to analyze results and issues to make quick exits or to do pyramiding after results
Reading Cash flows in simple way to understand where money is being moved in company
Reading Quarterly, half yearly, yearly results and interpreting them better
Tricks and Checklist for faster analysis of Annual Reports to help us all understand whether to deep dive or not
Conf-call understanding, Transcripts Concepts and Tricks to understand faster
Big money moves aspect to understand where money is moving
Concepts and tricks on various intricacies in stock market
Understanding about primary, secondary market
Also get a KNOWHOW on
Checklist for stocks to identify red flags faster
Checklist for deep dive into selected stocks
How to build Portfolio for Short term
How to build Portfolio for Long term
How to find Multi bagger stocks
How to avoid pitfalls in market
When to exit stocks
Free lifetime learning through a Whatsapp Community (apart from Program content)
Join like minded people to interact with on CHARTS, Domain KNOWLEDGE, Sector Expertise etc
This is a program YOU CAN NOT AFFORD TO MISS
LET THIS MONTH of 2023 be the start of your journey towards INDEPENDENCE IN STOCK MARKETS
ACT NOW for your Independence
FEEDBACK By ALPHA LEARNERS
ACT NOW for your Independence
CONTACT us
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
ALPHA LEARNERS – Mentorship program July-23
With great pleasure and best wishes from all of you, we are delighted to launch new batch of
ALPHA Mentorship program
Art and Science of Investing (basics to advanced)
to make you Independent in stock markets
AVAIL EARLY BIRD OFFER till 30th June23
Make your journey faster in Stock market (by 3 to 4yrs) with ALPHA LEARNERS Mentorship program
Number of batches and batch size is very very limited considering live classes
A PROGRAM TO MAKE YOU LEARN AND EARN
This is a unique live program for approx. 5 months (on weekends) and 7 months of handholding further, Where one can learn necessary
Fundamental Qualitative concepts to understand the things which create wealth in long run–like how to evaluate management, how to evaluate certain corporate actions, how to understand direction of company
Fundamental Quantitative concepts to substantiate what we have seen qualitatively, understanding ratios and numbers like margins and numbers like EBITDA, PAT, OPM, Financial Ratio, Valuation ratios PE, PB, PS, EVEBITDA, ROE, ROCE, Debt, equity and many other deep ratios to understand whether stock at right price or not
Learn about cost of capital, working capital cycle, inventory turnover, asset turnover, interest coverage, pledging(good or bad)
Why Dividend is good or bad
How long we can hold a stock or when to leave the stock
Capex, Opex and how it impacts and when it impacts
Why certain high pe stocks keep on running and low pe stocks remain down
Red flags and green flags
Necessary Technical aspect to make our entry and exit better in stocks ,oscillators and unique indicators including SMA, DMA, RSI, MACD, EMA, Trends, SL, , different time frames and some UNIQUE TECHNICAL INDICATORS NOT TAUGHT by ANYONE
Technical aspect and understanding of Price Volume action, candlestick patterns ( bullish, bearish, single, double, triple patterns)
Technical understanding of Targets from different patterns, How to look for patterns and when to look for which pattern
Resources to analyze faster to analyze more companies faster
Understand Contrarian, Cyclical, Value and Growth investing
Bucket and GRADE Framework
Business Moats understanding–how to categorize moats, what is real moat, what is fake moat
Exit Strategies in stocks
Reading Balances sheet in simple way to analyze results and issues to make quick exits or to do pyramiding after results
Reading Cash flows in simple way to understand where money is being moved in company
Reading Quarterly, half yearly, yearly results and interpreting them better
Tricks and Checklist for faster analysis of Annual Reports to help us all understand whether to deep dive or not
Conf-call understanding, Transcripts Concepts and Tricks to understand faster
Big money moves aspect to understand where money is moving
Concepts and tricks on various intricacies in stock market
Understanding about primary, secondary market
Also get a KNOWHOW on
Checklist for stocks to identify red flags faster
Checklist for deep dive into selected stocks
How to build Portfolio for Short term
How to build Portfolio for Long term
How to find Multi bagger stocks
How to avoid pitfalls in market
When to exit stocks
Free lifetime learning through a Whatsapp Community (apart from Program content)
Join like minded people to interact with on CHARTS, Domain KNOWLEDGE, Sector Expertise etc
This is a program YOU CAN NOT AFFORD TO MISS
LET THIS MONTH of 2023 be the start of your journey towards INDEPENDENCE IN STOCK MARKETS
ACT NOW for your Independence
AVAIL EARLY BIRD OFFER (save 3000 bucks) till 30th June 2023
FEEDBACK By ALPHA LEARNERS
ACT NOW for your Independence
CONTACT us
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
And what happens next!! Are you ready
The thing about big losses in the stock market is sometimes they are followed by big losses…but sometimes they’re followed by big gains.
Your thoughts are not your own!!
1% to 2%
IPO 2022
ALPHA LEARNERS – Mentorship program Jan-23
With great pleasure and best wishes from all of you, we are delighted to launch new batch of
ALPHA Mentorship program
Art and Science of Investing
to make you Independent in stock markets
AVAIL EARLY BIRD OFFER till 31stDec 2022
A PROGRAM TO MAKE YOU LEARN AND EARN
This is a unique live program for approx. 5 months (on weekends) and 7 months of handholding further, Where one can learn necessary
Fundamental Qualitative concepts to understand the things which create wealth in long run–like how to evaluate management, how to evaluate certain corporate actions, how to understand direction of company
Fundamental Quantitative concepts to substantiate what we have seen qualitatively, understanding ratios and numbers like margins and numbers like EBITDA, PAT, OPM, Financial Ratio, Valuation ratios PE, PB, PS, EVEBITDA, ROE, ROCE, Debt, equity and many other deep ratios to understand whether stock at right price or not
Learn about cost of capital, working capital cycle, inventory turnover, asset turnover, interest coverage, pledging(good or bad)
Why Dividend is good or bad
How long we can hold a stock or when to leave the stock
Capex, Opex and how it impacts and when it impacts
Why certain high pe stocks keep on running and low pe stocks remain down
Red flags and green flags
Necessary Technical aspect to make our entry and exit better in stocks ,oscillators and unique indicators including SMA, DMA, RSI, MACD, EMA, Trends, SL, , different time frames and some UNIQUE TECHNICAL INDICATORS NOT TAUGHT by ANYONE
Technical aspect and understanding of Price Volume action, candlestick patterns ( bullish, bearish, single, double, triple patterns)
Technical understanding of Targets from different patterns, How to look for patterns and when to look for which pattern
Resources to analyze faster to analyze more companies faster
Understand Contrarian, Cyclical, Value and Growth investing
Bucket and GRADE Framework
Business Moats understanding–how to categorize moats, what is real moat, what is fake moat
Exit Strategies in stocks
Reading Balances sheet in simple way to analyze results and issues to make quick exits or to do pyramiding after results
Reading Cash flows in simple way to understand where money is being moved in company
Reading Quarterly, half yearly, yearly results and interpreting them better
Tricks and Checklist for faster analysis of Annual Reports to help us all understand whether to deep dive or not
Conf-call understanding, Transcripts Concepts and Tricks to understand faster
Big money moves aspect to understand where money is moving
Concepts and tricks on various intricacies in stock market
Understanding about primary, secondary market
Also get a KNOWHOW on
Checklist for stocks to identify red flags faster
Checklist for deep dive into selected stocks
How to build Portfolio for Short term
How to build Portfolio for Long term
How to find Multi bagger stocks
How to avoid pitfalls in market
When to exit stocks
Bonus sessions on (apart from Program content)
Financial planning &
IPO
Free lifetime learning through a Community (apart from Program content)
Join like minded people to interact with on CHARTS, Domain KNOWLEDGE, Sector Expertise etc
4-5 months of teaching and mentoring
Can be extended based on queries, case studies
This is a program YOU CAN NOT AFFORD TO MISS
LET THIS Last MONTH of 2022 be the start of your journey towards INDEPENDENCE IN STOCK MARKETS
ACT NOW for your Independence
CONTACT us
AVAIL EARLY BIRD OFFER till 31st Dec 2022
FEEDBACK By ALPHA LEARNERS
ACT NOW for your Independence
CONTACT us
Number of batches and batch size is very very limited considering live classes
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Are we going to make J curve
Rise and fall of stakes
Frenziness…
Greatest Acquisitions
ALPHA LEARNERS – Mentorship program Aug-22
With great pleasure and best wishes from all of you, we are delighted to launch new batch of
ALPHA Mentorship program
Art and Science of Investing
to make you Independent in stock markets
AVAIL EARLY BIRD OFFER till 15th Aug 2022
A PROGRAM TO MAKE YOU LEARN AND EARN
This is a unique live program for approx. 5 months (on weekends) and 7 months of handholding further, Where one can learn necessary
Fundamental Qualitative concepts to understand the things which create wealth in long run–like how to evaluate management, how to evaluate certain corporate actions, how to understand direction of company
Fundamental Quantitative concepts to substantiate what we have seen qualitatively, understanding ratios and numbers like margins and numbers like EBITDA, PAT, OPM, Financial Ratio, Valuation ratios PE, PB, PS, EVEBITDA, ROE, ROCE, Debt, equity and many other deep ratios to understand whether stock at right price or not
Learn about cost of capital, working capital cycle, inventory turnover, asset turnover, interest coverage, pledging(good or bad)
Why Dividend is good or bad
How long we can hold a stock or when to leave the stock
Capex, Opex and how it impacts and when it impacts
Why certain high pe stocks keep on running and low pe stocks remain down
Red flags and green flags
Necessary Technical aspect to make our entry and exit better in stocks ,oscillators and indicators including RSI, MACD, STOC RSI, EMA, TEMA, DEMA, Trends, SL, Heiken Ashi candles, different time frames
Technical aspect and understanding of Price Volume action, candlestick patterns ( bullish, bearish, single, double, triple patterns)
Technical understanding of Targets from different patterns, How to look for patterns and when to look for which pattern
Resources to analyze faster to analyze more companies faster
Understand Contrarian, Cyclical, Value and Growth investing
Bucket and GRADE Framework
Business Moats understanding–how to categorize moats, what is real moat, what is fake moat
Exit Strategies in stocks
Reading Balances sheet in simple way to analyze results and issues to make quick exits or to do pyramiding after results
Reading Cash flows in simple way to understand where money is being moved in company
Reading Quarterly, half yearly, yearly results and interpreting them better
Tricks and Checklist for faster analysis of Annual Reports to help us all understand whether to deep dive or not
Conf-call understanding, Transcripts Concepts and Tricks to understand faster
Big money moves aspect to understand where money is moving
Concepts and tricks on various intricacies in stock market
Understanding about primary, secondary market
Also get a KNOWHOW on
Checklist for stocks to identify red flags faster
Checklist for deep dive into selected stocks
How to build Portfolio for Short term
How to build Portfolio for Long term
How to find Multi bagger stocks
How to avoid pitfalls in market
When to exit stocks
Bonus sessions on (apart from Program content)
Financial planning &
IPO
Free lifetime learning through a Community (apart from Program content)
Join like minded people to interact with on CHARTS, Domain KNOWLEDGE, Sector Expertise etc
4-5 months of teaching and mentoring
Can be extended based on queries, case studies6-7 months of handholding
To clear doubts, correction of mistakes, independent walking in markets
10+ Assignments
Based on actual events happening in markets during the course
Case studies
Based on future growth understanding and pitfalls to avoid
Quizzes
To help you assess yourself whether you are progressing or not during the programPresenting Stock idea by Learners to bridge the learning gap –this will be an approximate six month effort by all participants
This is a program YOU CAN NOT AFFORD TO MISS
LET THIS INDEPENDENCE MONTH of 2022 be the start of your journey towards INDEPENDENCE IN STOCK MARKETS
ACT NOW for your Independence
CONTACT us
AVAIL EARLY BIRD OFFER till 15th Aug 2022
FEEDBACK By ALPHA LEARNERS
ACT NOW for your Independence
CONTACT us
Number of batches and batch size is very very limited considering live classes
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Side effects of Crypto : Luxury Watches
Behaviour in bear markets
ALPHA LEARNERS – Mentorship program Apr-22
With great pleasure and best wishes from all of you, we are delighted to launch
ALPHA Mentorship program
ALPHA LEARNERS
Art and Science of Investing
to make you Independent in stock markets
AVAIL EARLY BIRD OFFER till 25th April 2022
A PROGRAM TO MAKE YOU LEARN AND EARN
This is a unique live program for approx. 5 months (on weekends) Where one can learn necessary
Fundamental Qualitative concepts to understand the things which create wealth in long run–like how to evaluate management, how to evaluate certain corporate actions, how to understand direction of company
Fundamental Quantitative concepts to substantiate what we have seen qualitatively, understanding ratios and numbers like margins and numbers like EBITDA, PAT, OPM, Financial Ratio, Valuation ratios PE, PB, PS, EVEBITDA, ROE, ROCE, Debt, equity and many other deep ratios to understand whether stock at right price or not
Learn about cost of capital, working capital cycle, inventory turnover, asset turnover, interest coverage, pledging(good or bad)
Why Dividend is good or bad
How long we can hold a stock or when to leave the stock
Capex, Opex and how it impacts and when it impacts
Why certain high pe stocks keep on running and low pe stocks remain down
Red flags and green flags
Necessary Technical aspect to make our entry and exit better in stocks ,oscillators and indicators including RSI, MACD, STOC RSI, EMA, TEMA, DEMA, Trends, SL
Technical aspect and understanding of Price Volume action, candlestick patterns ( bullish, bearish, single, double, triple patterns)
Technical understanding of Targets from different patterns, How to look for patterns and when to look for which pattern
Resources to analyze faster to analyze more companies faster
Understand Contrarian, Cyclical, Value and Growth investing
Bucket and GRADE Framework
Business Moats understanding–how to categorize moats, what is real moat, what is fake moat
Exit Strategies in stocks
Reading Balances sheet in simple way to analyze results and issues to make quick exits or to do pyramiding after results
Reading Cash flows in simple way to understand where money is being moved in company
Reading Quarterly, half yearly, yearly results and interpreting them better
Tricks and Checklist for faster analysis of Annual Reports to help us all understand whether to deep dive or not
Conf-call understanding, Transcripts Concepts and Tricks to understand faster
Big money moves aspect to understand where money is moving
Concepts and tricks on various intricacies in stock market
Understanding about primary, secondary market
Also get a KNOWHOW on
Checklist for stocks to identify red flags faster
Checklist for deep dive into selected stocks
How to build Portfolio for Short term
How to build Portfolio for Long term
How to find Multi bagger stocks
How to avoid pitfalls in market
When to exit stocks
Concept of Futures and options
4 Bonus sessions (apart from Program content)
Mutual Funds
Financial planning
IPO and
Big money moves
3-4 months of teaching and mentoring
Can be extended based on queries, case studies1-2 months of handholding
To clear doubts, correction of mistakes, independent walking in markets
10+ Assignments
Based on actual events happening in markets during the course
Case studies
Based on future growth understanding and pitfalls to avoid
Quizzes
To help you assess yourself whether you are progressing or not during the programPresenting Stock idea by Learners to bridge the learning gap –this will be an approximate six month effort by all participants
This is a program YOU CAN NOT AFFORD TO MISS
LET THIS NEW YEAR 2022 be the start of your journey towards INDEPENDENCE IN STOCK MARKETS
ACT NOW for your Independence
CONTACT us
AVAIL EARLY BIRD OFFER till 15th April 2022
FEEDBACK By Ongoing ALPHA LEARNERS
ACT NOW for your Independence
FEEDBACK By Ongoing ALPHA LEARNERS
CONTACT us
Number of batches and batch size is very very limited considering live classes
Major part of this initiative will go towards orphan children education and food
Do make use of this opportunity and be part of bigger initiative
Connect with us to help genuine needy children
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Hot Potatoes : Free fall in many recently listed IPO
ALPHA LEARNERS – Mentorship program Jan22
With great pleasure and best wishes from all of you, we are delighted to launch
ALPHA Mentorship program
ALPHA LEARNERS
Art and Science of Investing
to make you Independent in stock markets
A PROGRAM TO MAKE YOU LEARN AND EARN
This is a unique live program for approx. 5 months (on weekends) Where one can learn necessary
Fundamental Qualitative concepts to understand the things which create wealth in long run–like how to evaluate management, how to evaluate certain corporate actions, how to understand direction of company
Fundamental Quantitative concepts to substantiate what we have seen qualitatively, understanding ratios and numbers like margins and numbers like EBITDA, PAT, OPM, Financial Ratio, Valuation ratios PE, PB, PS, EVEBITDA, ROE, ROCE, Debt, equity and many other deep ratios to understand whether stock at right price or not
Learn about cost of capital, working capital cycle, inventory turnover, asset turnover, interest coverage, pledging(good or bad)
Why Dividend is good or bad
How long we can hold a stock or when to leave the stock
Capex, opex and how it impacts and when it impacts
Why certain high pe stocks keep on running and low pe stocks remain down
Red flags and green flags
Necessary Technical aspect to make our entry and exit better in stocks ,oscillators and indicators including RSI, MACD, STOC RSI, EMA, TEMA, DEMA, Trends, SL
Technical aspect and understanding of Price Volume action, candlestick patterns ( bullish, bearish, single, double, triple patterns)
Technical understanding of Targets from different patterns, How to look for patterns and when to look for which pattern
Resources to analyze faster to analyze more companies faster
Understand Contrarian, Cyclical, Value and Growth investing
Bucket and GRADE Framework
Business Moats understanding–how to categorize moats, what is real moat, what is fake moat
Exit Strategies in stocks
Reading Balances sheet in simple way to analyze results and issues to make quick exits or to do pyramiding after results
Reading Cash flows in simple way to understand where money is being moved in company
Reading Quarterly, half yearly, yearly results and interpreting them better
Tricks and Checklist for faster analysis of Annual Reports to help us all understand whether to deep dive or not
Conf-call understanding, Transcripts Concepts and Tricks to understand faster
Big money moves aspect to understand where money is moving
Concepts and tricks on various intricacies in stock market
Understanding about primary, secondary market
Also get a KNOWHOW on
Checklist for stocks to identify red flags faster
Checklist for deep dive into selected stocks
How to build Portfolio for Short term
How to build Portfolio for Long term
How to find Multi bagger stocks
How to avoid pitfalls in market
When to exit stocks
Concept of Futures and options
4 Bonus sessions from experts (apart from Program content)
Mutual Funds
Financial planning
IPO and
Accumulation Distribution session
3-4 months of teaching and mentoring
Can be extended based on queries, case studies1-2 months of handholding
To clear doubts, correction of mistakes, independent walking in markets
10+ Assignments
Based on actual events happening in markets during the course
Case studies
Based on future growth understanding and pitfalls to avoid
Quizzes
To help you assess yourself whether you are progressing or not during the programPresenting Stock idea by Learners to bridge the learning gap
This is a program YOU CAN NOT AFFORD TO MISS
LET THIS NEW YEAR 2022 be the start of your journey towards INDEPENDENCE IN STOCK MARKETS
ACT NOW for your Independence
CONTACT us
AVAIL EARLY BIRD OFFER till 1st Jan 2022
ACT NOW for your Independence
FEEDBACK By Ongoing ALPHA LEARNERS
CONTACT us
Number of batches and batch size is very very limited considering live classes
Major part of this initiative will go towards orphan children education and food
Do make use of this opportunity and be part of bigger initiative
Connect with us to help genuine needy children
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Digital Gold : BEWARE or BE AWARE
What to do in Current Stock Market in Oct2021: Sell out, buy more or hold or Reorganize ?
Also read : Invest in Stock market IF
We can broadly classify investors today in three kinds only
- Who have made lot of money in last 1 year or so and kept on riding and still want to ride further
- Who are sitting on sidelines and thinking to jump or have jumped in last few months
- Those who wanted to exit now looking at various indicators
Most of the investors I talk are fearful of immediate correction in market, though they have not exited the market yet to cash positions. Some of them are confident after making money in last one year. Even the so called new breed of investors are also 1 year old in markets and calling themselves experienced now who have seen volatilities, and buying every dip. Time will tell who will be the Last Standing Man
So as you are reading this article, did you notice where do you belong? If you feel you are outside the purview of these three kinds, you have two choices. 1. Align to one of the view 2. Send me with your classification!
Congratulations, if you are able to see yourself amongst one of the three kinds mentioned above
Question still remains same for everyone : What to do now? Should we buy, sell or keep holding? What’s next : Is it bull market or is crash near?
Let’s read further to understand more about it and see what strategies people can adopt
Case 1. Sell out 100% and wait to re-enter at lower levels
This strategy is for people who
- Are facing Liquidity challenges
- Can’t sleep properly due to fear of crash in markets
- Borrowed money to invest
- Goals are near ( within 1-2 years)
OR
You are able to foresee with your experience drastic correction coming. It may be due to Evergrande default or US debt or may be some other reason
Advantage with these strategy is you may not lose capital if market goes down and may get a chance to re-enter at lower levels. Problem with this strategy is it is impossible for anyone to predict whether market has topped out or not. Will Market go further up and can give you a bigger chance to cash out? Will market come down and give you a chance to enter at lower levels. Nobody knows. Get away from people if they claim to know.
It is always better to cash out if our goals are near or we have debt to pay because when correction happens, it will not give you a chance to exit at your desired levels
This strategy although seems good but it can be painful as markets may remain irrational longer than you remaining rational and you might keep on getting the itch to enter again.
So be careful of this approach and you have to be sure when you should re-enter.
Case 2 Go opposite and buy more
I will strongly advised against this
Problem with this strategy is most of us will be invested in 40-50 stocks on tips from random sources and keeping most of the stocks which are in loss. So if market correction happens, we will not be having enough money to average down all stocks.
In case, you have idle money and have a itch to invest at these levels, in such cases adopt a simple strategy
- Keep buying same quality stocks based on quarterly results or in sip mode
- Plan your investment in a staggered manner instead of putting money in single go
- Invest the money which you don’t need for next 5 years
Correct portfolio allocation and conviction in the chosen stocks is a must for investing at these levels.
Case 3- Hold and reorganise your portfolio
This strategy is for people
- Who have long term views on equity
- Who have money available to invest right now
- Who do not need to sell out as no immediate money requirement
- Who understand their stocks and sitting on good cushion of profit in last one year and can handle 30% downside
- Who will not panic when market falls down and quality watchlist is ready to buy in such an event
Under this strategy, adopt the simple course of action
- Reduce number of stocks to a level which you can track easily. (20 stocks in a portfolio is considered reasonable for an average investor to track)
- Reduce the stocks positions partially or completely which you have bought on tips and not working or in loss. Getting out with a small loss is good at these levels to rearrange your portfolio
- Moving some part to cash from positional stocks. May be keeping cash close to 30-40%
- Buy stocks from upcoming niche sectors
- Buy more of convincing stocks with long term horizon of 3-5 yrs.
- Increase the positions in stocks which are showing a promising future and management is walking the talk
Case 4- Sell Partially
This strategy is for people
- Who are ready to leave last 10-20% gains on table
- Who are ready to have patience for their cash deployment
- They do not feel zealous when other people make money and they themselves stay in cash
- Under this the simple course of action is
- Sell partially up to 10-25% and sit on cash, may or may not get a chance to deploy cash soon and wait can get longer
- Rest 75% to 90% should remain invested, so if markets runs up, they are still in the market
What I am doing in this market? My answer is Case 3 ( changed from Case 4 earlier this year)
- I have booked out of most positional stocks apart from few holding with my closed group of people. Last few months, i have moved to already 35-40% cash but at same time reshuffled that cash to strengthen my existing positions or build new positions aligning to next few months
- I am holding stocks which have good story building up and adding more on each quarterly result. I do expect strong quarterly results of my investment holdings
- Any new stock which looks promising to me, I am adding as positional and converting to investment as my conviction increases
- I am not averaging down any stock as of now
So that effectively means
I am putting money into the market from so many booked positions in last few months and adding new positions
I am selling my existing less convincing or loss making positions
I am not waiting for correction in market as i have sufficient liquidity available
I am re-organizing my portfolio for next cycle of market
I am happy to ride with my invested convincing positions
Overall, what I learnt from markets in my journey is very simple and easy to follow :
You can’t be 100% invested in market
You can’t be 100% sold out from market.
Will correction happen–Few events like US Debt, Tapering of interest rates, China India talks failure, China Power crisis, India Power crisis can dampen the spirit much faster than anticipated. So yes, quite a few things are bad, China power crisis is biggest of them. Any correction will be fast and furious. Be ready to see 30-40% erosion of capital seen on Screen today.
Are things all bad — On other hand there is good results anticipated for Q2FY22 both QoQ and YoY in many companies. Bigger population has been been vaccinated either partially or fully so effectively third wave is ruled out for few more weeks. Currently many things looking positive. Be it exports, be it festive demand in many sectors. Nifty has made new highs and can go further up. In short term upside seems limited though if everything falls in place, 21K on Nifty cant be ruled out within 7-9 Months (Jun-Jul2022)
Whatever strategy finally you adopt. don’t be a blind follower
Read more on Blind follower here
Wishing you all the best and lots of luck
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
ALPHA LEARNERS – Mentorship program OCT
With great pleasure and best wishes from all of you, we are delighted to launch
ALPHA Mentorship program
ALPHA LEARNERS
Art and Science of Investing
to make you Independent in stock markets
A PROGRAM TO MAKE YOU LEARN AND EARN
This is a unique live program for approx. 5 months (on weekends) Where one can learn necessary
Fundamental Qualitative concepts to understand the things which create wealth in long run
Fundamental Quantitative concepts to substantiate what we have seen qualitatively
Necessary Technical aspect to make our entry and exit better in stocks
Resources to analyze faster to analyze more companies faster
Big money moves aspect to understand where money is moving
Understand Contrarian, Cyclical, Value and Growth investing
Bucket and GRADE Framework
Business Moats understanding
Exit Strategies in stocks
Reading Balances sheet in simple way to analyze results and issues to make quick exits or to do pyramiding after results
Tricks and Checklist for faster analysis of Annual Reports to help us all understand whether to deep dive or not
Conf-call understanding, Transcripts Concepts and Tricks to understand faster
Concepts and tricks on various intricacies in stock market
Understanding about primary, secondary and derivatives market
Also get a KNOWHOW on
Checklist for stocks to identify red flags faster
Checklist for deep dive into selected stocks
How to build Portfolio for Short term
How to build Portfolio for Long term
How to find Multi bagger stocks
How to avoid pitfalls in market
When to exit stocks
Concept of Futures and options
4 Bonus sessions from experts (apart from Program content)
Mutual Funds
Financial planning
IPO and
a SURPISE session
3 months of teaching and mentoring
Can be extended based on queries, case studies2 months of handholding
To clear doubts, correction of mistakes, independent walking in markets
12 Assignments
Based on actual events happening in markets during the course
Case studies
Based on future growth understanding and pitfalls to avoid
Quizzes
To help you assess yourself whether you are progressing or not during the program
This is a program YOU CAN NOT AFFORD TO MISS
LET THIS INDEPENDENCE MONTH be the start of your journey towards INDEPENDENCE IN STOCK MARKETS
ACT NOW for your Independence
CONTACT us
AVAIL EARLY BIRD OFFER till 30th Sep 2021
ACT NOW for your Independence
CONTACT us
Number of batches and batch size is very very limited considering live classes
Major part of this initiative will go towards orphan children education and food
Do make use of this opportunity and be part of bigger initiative
Connect with us to help genuine needy children
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Aatmnirbhar Version : MMF and Technical Textiles
ALPHA LEARNERS – Mentorship program
With great pleasure and best wishes from all of you, we are delighted to launch
ALPHA Mentorship program
ALPHA LEARNERS
Art and Science of Investing
to make you Independent in stock markets
A PROGRAM TO MAKE YOU LEARN AND EARN
This is a unique live program for approx. 5 months (on weekends) Where one can learn necessary
Fundamental Qualitative concepts to understand the things which create wealth in long run
Fundamental Quantitative concepts to substantiate what we have seen qualitatively
Necessary Technical aspect to make our entry and exit better in stocks
Resources to analyze faster to analyze more companies faster
Big money moves aspect to understand where money is moving
Understand Contrarian, Cyclical, Value and Growth investing
Bucket and GRADE Framework
Business Moats understanding
Exit Strategies in stocks
Reading Balances sheet in simple way to analyze results and issues to make quick exits or to do pyramiding after results
Tricks and Checklist for faster analysis of Annual Reports to help us all understand whether to deep dive or not
Conf-call understanding, Transcripts Concepts and Tricks to understand faster
Concepts and tricks on various intricacies in stock market
Understanding about primary, secondary and derivatives market
Also get a KNOWHOW on
Checklist for stocks to identify red flags faster
Checklist for deep dive into selected stocks
How to build Portfolio for Short term
How to build Portfolio for Long term
How to find Multi bagger stocks
How to avoid pitfalls in market
When to exit stocks
Concept of Futures and options
4 Bonus sessions from experts (apart from Program content)
Mutual Funds
Financial planning
IPO and
a SURPISE session
3 months of teaching and mentoring
Can be extended based on queries, case studies2 months of handholding
To clear doubts, correction of mistakes, independent walking in markets
12 Assignments
Based on actual events happening in markets during the course
Case studies
Based on future growth understanding and pitfalls to avoid
Quizzes
To help you assess yourself whether you are progressing or not during the program
This is a program YOU CAN NOT AFFORD TO MISS
LET THIS INDEPENDENCE MONTH be the start of your journey towards INDEPENDENCE IN STOCK MARKETS
ACT NOW for your Independence
CONTACT us
AVAIL EARLY BIRD OFFER till 31st Aug 2021
ACT NOW for your Independence
CONTACT us
Number of batches and batch size is very very limited considering live classes
Major part of this initiative will go towards orphan children education and food
Do make use of this opportunity and be part of bigger initiative
Connect with us to help genuine needy children
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
How the Mighty Fall!
Zomato IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Zomato IPO is little different because company is showing losses and when they will break-even is not sure. So read further and analyse all points with a pinch of salt. Many investors dream of being a venture capitalist one day and to all those guys, Zomato is giving you a chance.
Put your HAT of venture capitalist and drop the hat of investor to view this IPO. If it works good — ENJOY!!, If it does not–Don’t lose sleep.
Zomato IPO– Incorporated in the year 2008 as a restaurant-discovery website – Zomato, is now one of India’s largest food delivery company.
Business — Zomato has four business segments – two core B2C offerings including food delivery and dining-out. There is B2B ingredients procurement platform ‘Hyperpure’ and the customer loyalty program, ‘Zomato Pro’ as well
Region of operation — Company has operations in 23 foreign countries – UAE, Australia, New Zealand, Philippines, Indonesia, Malaysia, USA, Lebanon, Turkey, Czech, Slovakia, and Poland. However, the company generates 90% of its revenue from India.
Offer purpose — 9,000 crore will be a fresh issue, while the remaining an offer for sale from the oldest investor – Info Edge (India) Ltd. Company will be possibly using this money for organic and inorganic growth
Risks —
Company unit economics of profitability is not sustainable as of now
Highly competitive industry and many players have shut down in past few years. Any new player with deep pockets can come and start competing. Amazon has already started with aggressive pricing
High dependence on order size and repeat orders for making money
Strength
Adjusted for cash and cash equivalents, Zomato has an asset-light balance sheet and it will help company to sustain for few more years with almost 16000cr cash and cash equivalents
Covid-19 has given push to delivery based eating model and it will possibly help the company to cut operational costs with lower discounts and higher delivery charges
Only two major players in fray and other players are only focused on one part of business while Zomato is well leading ahead in other domains as of now
Able management
International presence
Future
Company has been growing and survived last few years onslaught when many players have shut shop(including uber, ola, foodpandaetc). The way Indian population is moving to nuclear families, demand for food delivery will increase and so will be competition.
Hence ability to charge high prices may remain limited.
Diversification into other areas like stake in grofers, kitchens, increase in memberships may help the company to survive against competition a bit longer.
How fast they can expand in tier 2 and tier 3 towns and how much they are able to extract from people is the key in next few years for breaking even.
Its the only player in 4 different segments as compared to peers is an advantage for them as of now
Valuations
Valuations are extremely stretched out. Nothing much to talk sensible here
Should we apply?
People falling into high risk taking category can bid in IPO and and add more after listing to play out this theme over few years.
People who can take risk of capital erosion can subscribe with one lot and book out on listing gains if any.
Please note that company is not profitable and entire capital put in company shares can go down the drain if things do not turn in anticipated way
Whatever you want to do with this IPO , don’t become a long term investor if you applied for listing gains or vice versa. Be sure of why you are applying and stick to that
Also Read
Burger King IPO crisp Summary — Listing with huge gains as shared
CAMS IPO crisp summary — Listed with 20% gains as shared
Happiest Minds IPO crisp summary –Listed with substantial gains as shared
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Private banks vs Banking sector
Passive funds growing actively
Coffee Can and 21% CAGR for 20 years!!
Life and investing : 29 lessons
Mutual Fund mistakes to avoid
What to do in Current Stock Market in Apr2021: Sell out, buy more or hold ?
Most of the investors I talk are bullish and confident after making money in last one year. They are quite confident that every fall now is a buying opportunity
Also read : Invest in Stock market IF
We can broadly classify investors today in four kinds
- Who have entered market in March 2020 in or after lockdown and seen everything they touch turning to gold and in last one month, they lost some part of money by taking aggressive calls or to multiply it faster by trading in options and losing it faster henceforth
- Who have seen 2000, 2008, 2018 crashes and mostly sat on sidelines in March 2020 crash and still in disbelief that markets made a new life time high recently
- Who have adapted themselves fast and riding the trend till now
- Those who have have rode the trend and partially exited in March-April and hold around 25% cash
So as you are reading this article, did you notice where do you belong?
Congratulations, if you are able to see yourself amongst one of the four kinds mentioned above
Question still remains same for everyone : What to do now? Should we buy, sell or keep holding? What’s next : Is it bull market or is crash near?
Let’s read further to understand more about it and see what strategies people can adopt
Case 1. Sell out 100% and wait to re-enter at lower levels
Thsi strategy is for people who
- Are facing Liquidity challenges
- Can’t sleep properly due to fear of crash in markets
- Borrowed money to invest
- Goals are near ( within 1-2 years)
Advantage with these strategy is you may not lose capital if market goes down and may get a chance to re-enter at lower levels. Problem with this strategy is it is impossible for anyone to predict whether market has topped out or not. Will Market go further up and can give you a bigger chance to cash out? Will market come down and give you a chance to enter at lower levels. Nobody knows. Get away from people if they claim to know.
It is always better to cash out if our goals are near or we have debt to pay because when correction happens, it will not give you a chance to exit at your desired levels
You may need to decide a market point where you should re-enter
Case 2 Go opposite and buy more
I will strongly advised against this. Problem with this strategy is most of us will be invested in 50 + stocks by taking tips from random sources and keeping most of the stocks which are in loss. So if market correction happens, we will not be having enough money to average down all stocks.
In case, you have idle money and have a itch to invest at these levels, in such cases adopt a simple strategy
- Have a watchlist of quality stocks and
- Keep buying from the same watchlist based on quarterly results or in sip mode
- Plan your investment in a staggered manner instead of putting money in single go
- Invest the money which you don’t need for next 5 years
Correct portfolio allocation and conviction in the chosen stocks is a must for investing at these levels
Case 3- Hold and reorganise your portfolio
This strategy is for people
- Who are confused and not sure which strategy one should adopt
- Who have long term views on equity but not sure what to do in such a bullish market scenario
- Who have money available to invest right now but not sure in which stocks
- Who do not need to sell out as no immediate money requirement
Under this strategy, adopt the simple course of action
- Reduce number of stocks to a level which you can track easily. (20 stocks in a portfolio is considered reasonable for an average investor to track)
- Reduce the stocks positions partially or completely which you have bought on tips and not working or in loss. Getting out with a small loss is good at these levels to rearrange your portfolio
- Buy more of convincing stocks with long term horizon of 3-5 yrs.
- Increase the positions in stocks which are showing a promising future and management is walking the talk
Case 4- Sell Partially
This strategy is for people
- Who are ready to leave last 10-20% gains on table
- Who are ready to have patience for their cash deployment
- They do not feel zealous when other people make money and they themselves stay in cash
- Under this the simple course of action is
- Sell partially up to 10-25% and sit on cash, may or may not get a chance to deploy cash soon and wait can get longer
- Rest 75% to 90% should remain invested, so if markets runs up, they are still in the market
What i am doing in this market? My answer is Case 4.
- I have booked out of most positional stocks apart from few holding with my closed group of people
- I am selling the stocks which have run ahead of their fundamentals.
- I am selling the stocks which have hit stop loss levels ( both long term and short term stocks have stop loss levels)
- I am holding stocks which have good story building up and adding more on each quarterly result. In case they looking pricier at this point, i am not adding and just trying to hold and wait for next quarterly results for further action towards buying/selling
- Any new stock which looks promising to me, I am waiting for correction to add more
- I am not averaging any stock as of now
So that effectively means
I am not putting new money into the market
I am selling my existing less convincing or loss making positions
I am waiting for small correction in market to add more
I am not re-organizing my portfolio for next cycle of market
I am keeping Cash levels close to 20% to handle market correction and adding more.
I am happy to ride with my invested convincing positions
I would not recommend to sell out and sit if you have not borrowed money and are not facing immediate liquidity issues. But for sure remove dud stocks and put that money into other quality stocks as always
Overall, what I learnt from markets in my journey is very simple and easy to follow :
You can’t be 100% invested in market
You can’t be 100% sold out from market.
Will correction happen–We don’t know but fact is every rise is being sold into. The situation on ground is bad for COVID-19. Correction if happens, can take Nifty to 13100, 12400 levels where we can average on our positions. Bounce back should be sharper until and unless Covid 19 gets out of control and needed stringent undesired lockdowns, In such scenario 10k on nifty cant be ruled out
Are things all bad –No, not all is bad , There is good ray of hope for Q4FY21 results and Q1 FY22 results. There is hope for different vaccines being rolled out. Nifty new high cant be ruled out as of now
Whatever strategy finally you adopt. don’t be a blind follower
Read more on Blind follower here
Wishing you all the best and lots of luck
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Software in 2k : Oxygen in 2021
Investing : Wrong half the time and still make a fortune
Home First Finance IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Home First Finance IPO– 10 yr old company promoted by private equity funds.
Business — In the affordable housing segment in 11 states with 70 branches. 80% business from 4 states including 40% from Gujarat only
Offer purpose — Offer for sale (1153cr) including fresh issue of 265 cr. for expansion and general purposes
Key domains – Affordable housing finance for construction , loans for purchasing commercial property and loans against property to both salaried and small business owners/self-employed customers
Risks —
Consistently need to remain in limelight in highly competitive industry, Key financial metrics are not great as of now
With focus on middle class and recent Covid impact , NPA will always be struggle for few quarters
Strength
Focus on growing affordable housing category for middle income and low income category which is not serviced by many big banks
Company use technology to its advantage and do fast processing of loans
Average ticket size is 10 lacs approximately which makes it target highly growing category of loans
Future
Various government initiatives such as housing for all, amongst others are likely to offer exciting growth opportunities in the coming years.
Last three years CAGR is 60% plus although on smaller base shows future seems bright if it remains on track
Valuations
In almost all aspects except PE, Better listed options available
Should we apply?
People can avoid or subscribe only for listing gains
Recommended to sell if getting gains on listing day
One can wait to enter at low prices for investment purposes or choose peers for investment purpose during corrections
Also Read
Burger King IPO crisp Summary — Listing with huge gains as shared
UTI AMC IPO crisp Summary — Listed with loss as shared
CAMS IPO crisp summary — Listed with 20% gains as shared
Angel Broking IPO crisp summary –Listed with loss as shared
Happiest Minds IPO crisp summary –Listed with substantial gains as shared
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
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Stove Kraft IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Stove Kraft IPO– Almost 20 yr old company involved in manufacturing, marketing and exporting kitchen appliances
Business — Company is into manufacturing LPG gas stoves, induction cooktops, non-stick cookware, pressure cookers, chimneys etc
Offer purpose — Offer for sale (412cr) including fresh issue of 95 cr. for repayment of debt and general purposes
Key domains -Company have three different segments. Pigeon for Mass market, Gilma for Mid level and Balck and Decker at top level premium category
Risks —
Company has yet to show sustainable profits.
It is operating in field of established players like Prestige, Hawkins so with such intense competition, profits margins will always face heat.
Company has ongoing litigation and not efficient to recover money from retailers.
Company has been into unrelated segments like LED which can derail the focus on key categories
Customers may not remain loyal as switching to other brands is easy, so basically no moat
Strength
Company has two under-utilised plants which can be ramped up without any major capex
Company have different brands catering to different segments and have good reputation of its products
Company has multiple distribution channels including e-commerce
Future
Market is expected to grow at 11% CAGR in near future
Company existing capacity is not fully utilised and with growth of overall market, company has room to grow
There is a systematic shift happening towards usage of kitchen appliances
Valuations
Recently turned profitable company with low ROE and margins seeking almost equal valuations as leaders in their categories
Bullish market and IPO frenzy makes the valuations stretched leaving little room for improvement
Should we apply?
People can subscribe for long term only if they want to bet on growth potential
If applying, recommended to sell on getting gains on listing day
One can avoid for investment purposes presently as there are better listed option available in market
Also Read
Home First Finance IPO Crisp Summary
Burger King IPO crisp Summary — Listing with huge gains as shared
UTI AMC IPO crisp Summary — Listed with loss as shared
CAMS IPO crisp summary — Listed with 20% gains as shared
Angel Broking IPO crisp summary –Listed with loss as shared
Happiest Minds IPO crisp summary –Listed with substantial gains as shared
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
IRFC IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
IRFC IPO– Incorporated in 1986 by the Ministry of Railways (MoR), the Government of India, Indian Railway Finance Corporation (IRFC) is a wholly-owned public-sector undertaking
Business — Its engaged in the activity of mobilising funds on behalf of the Indian Railways to finance its procurement of locomotives, passenger coaches, and wagons as well as to fund other railway infrastructure assets. Apart from providing finance to the MoR, IRFC has provided loans to Rail Vikas Nigam Limited (RVNL), which is wholly owned by the MoR.
Offer purpose — Offer for sale (4600cr) including fresh issue of 3100 cr. for expansion and general purposes,1500 cr will flow to Goverment
Key Service domains – NBFC -Infrastructure finance to MoR
Risks —
Low RoE, lending to government entities at the fixed spread,
and risk of equity dilution from OFS in subsequent years
Strength
Zero NPAs, Lowest Borrowing cost (AAA rated), high operationally managed entity
Strategic role in financing growth of Indian Railways with regular demand for loans which is favorable for its asset growth.
Competitive cost of borrowings: Because IRFC belongs to GoI, and lends to GoI owned entities, the cost of borrowing is very low for IRFC.
Consistent financial performance and cost-plus model: IRFC charges a fixed interest rate for sourcing loans for MoR. It gets fixed spread in the range of 0.3% to 0.4% above its cost of borrowings.
Future
IRFC is strategically important to the MoR as it raises around 25-35% of the total funding requirement (plan outlay) of the Ministry.
It is growing at good rate but ROE can’t be expanded much.
Could be a consistent dividend player
Valuations
Profit making company with stable below par ROE
AUM growth (3yr CAGR>20%) coming at 1x H1FY21 P/BV, Valuations are underpriced to reasonable range of P/B ~1
Should we apply?
People can subscribe looking at mid term to long term prospects
Avoid if one is averse to PSU or looking at big gains
Stellar gains at IPO may not be visible due to large IPO size
One can wait to enter at low prices for investment purposes for dividend play as well
Also Read
Indigo Paints IPO crisp Summary — Apply or not
Burger King IPO crisp Summary — Listing with huge gains as shared
UTI AMC IPO crisp Summary — Listed with loss as shared
CAMS IPO crisp summary — Listed with 20% gains as shared
Angel Broking IPO crisp summary –Listed with loss as shared
Happiest Minds IPO crisp summary –Listed with substantial gains as shared
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
INDIGO PAINTS IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Indigo Paints IPO– Among top 5 in Decorative Paint Industry in India with growing over 40% CAGR in terms of sales since inception.
Business — In the Decorative paints industry with high share of differentiated products with high barriers of entry,
~28% business comes from differentiated products
Offer purpose — Offer for sale (1169cr) including fresh issue of 300 cr. for expansion and general purposes
Key Service domains – Repainting constitutes >70% demand and Tier 2, Tier 3, Tier 4 regions are major targets for company
Risks —
Consistently need to spend on Ads to remain in limelight. Currently they spend 12-13% of revenue on ad spends as compared to 3-5% for other big players
As they are expanding to big cities, competition from other 4 large players will pose serious challenge as retail outlets space is limited
Strength
Paint Industry has relatively high entry barriers and need a technologically advanced Manufacturing and distribution network
Company provides low discount on gross sales due to differentiated products
Have low operating expenses as compared to peers and high margins which sustain higher ad spends
Manufacturing locations are close to raw materials keeping costs low
Future
Various government initiatives such as housing for all, smart-cities, industrial corridors and Atmanirbhar Bharat amongst others are likely to offer exciting growth opportunities in the coming years.
As per capita income increases in India, re-painting cycles will be shortened possibly to 5-6 years. Also that will help people to upgrade to premium paints
GST, COVID-19 has shifted the paint market towards organised one and that will help this company in coming years
Valuations
Profit making company with improving ROE, ROCE but seeking very high valuations in IPO (~140X PE)
Asian Paints At 9X Capacity, 500 bps higher margin at 32X Higher Sales than Indigo currently trades at 70X FY22e
Should we apply?
People can subscribe looking at IPO frenzy and possible listing gains only
Recommended to sell if getting 10-30% gains on listing day
One can wait to enter at low prices for investment purposes and review holdings with each quarter earnings
Also Read
Burger King IPO crisp Summary — Listing with huge gains as shared
UTI AMC IPO crisp Summary — Listed with loss as shared
CAMS IPO crisp summary — Listed with 20% gains as shared
Angel Broking IPO crisp summary –Listed with loss as shared
Happiest Minds IPO crisp summary –Listed with substantial gains as shared
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Investments in 2020 : Are you on track?
Recent Darlings of Investors
Route Mobile
Read more here on Route Mobile
Burger King
Read more here on Burger King
India’s boAT –fifth largest wearable brand in the world
Read more here on boAT
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Value buying or value trap for retailers !!
Retail investors often take their investment decisions based on the share price instead of the fundamentals. They tend to buy what looks ‘cheap’ and get influenced by the news around a company. They often see a large fall in share price as an opportunity. However, such investments often end up becoming value traps. A huge price decline may not always be due to a temporary issue but also due to a permanent dent in the company’s prospects. Also, a sudden surge in the stock price attracts retail investors. They then invest in such a company, without paying much attention to its fundamentals. Curiously, the lower the ticket size of the share, the more interested retail investors become. All these are wrong reasons to buy a stock. A stock should be bought because the fundamentals of the underlying company are robust. Tracking the activity of promoters, FIIs and DIIs can be a useful input in determining this.
-source Valueresearchonline
Bectors Food Specialities IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Bector Food Specialities IPO– Mrs. Bector’s Food is one of the leading companies in the premium and mid-premium biscuits segment and the premium bakery segment. Company is largest supplier of buns for QSR restaurants in India.
Business — Sells Biscuits, Bakery products, Frozen Products. And a contract Manufacturer for Oreo and Bournvita biscuits
Offer purpose — Offer for sale (540cr) including fresh issue of 40 cr. for expansion and general purposes
Key Service domains – Biscuits domestic 43% of total sales, 24% exports of total sales.
Key export regions are Africa and North America. Total 64 countries where export is done
Risks —
There are cases of non-compliance against certain legislations in the past by group company and some disciplinary actions as well
Highly competitive industry with company having only 1% market share. Margins can reman depressed for quite long time putting strain on cash flows
Low shelf life of certain products
Company do not have any long term supply agreements with any of their QSR customers is a strange thing and deals on day to day basis requirement for bns, bakery and frozen products
One of the lowest risk but having high business impact is focus on nutritional value of products which can hamper sales in future
Strength
A leader in biscuits and bakery segments in North India with well-diversified product portfolio.
Major food certifications i.e. BRC, USFDA, and FSSC.
Modern production process, Strong sales and distribution network.
Strategically located in proximity to target markets which minimizes freight and logistics related expense and time
Future
QSR is thriving industry and consumption food business will gain. QSR CAGR expected to grow >20% for next 4-5 yrs
Proxy play to QSR story, so should do well in coming years
Valuations
Profit making company but PAT going down from last three years
Focusing on growth in premium biscuits and bakery segment to improve margin having high competition
As compared to peers, valuations looks ok but needs consistent review
Should we apply?
People can subscribe looking at growth prospects
Listing day may see good gains. Recommended to sell if getting 10-30% gains on listing day
One can also hold long and review holdings with each quarter earnings
Also Read
Burger King IPO crisp Summary — Possible Listing with gain on cards
UTI AMC IPO crisp Summary — Listing with loss as shared
CAMS IPO crisp summary — Listing with 20% gains as shared
Angel Broking IPO crisp summary –Listing with loss as shared
Happiest Minds IPO crisp summary –Listing with substantial gains as shared
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Confident Promoters!
PLI Scheme : 10 Sectors
Implementation of production-linked incentive (PLI) schemes worth up to ₹1.45 lakh crore for 10 key sectors announced recently by the government is likely soon.
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
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Top Dividend players to Govt
What to do in Current Stock Market : Sell out, buy more or hold ?
If you have not read my earlier post , please go through What to do in stock market in early 2020. It’s important as you will be able to relate to this post in much better way after that!
Most of the investors I talk nowadays are not willing to invest in this supposedly overheated Indian stock market and its not about only December 2020, i can see the fear of crash looming in their talk from Sep2020. Most of them have cashed out from market in September 2020 due to Indian Chinese troop clashes and fear of US election results. What happened thereafter is more painful for such investors, Markets ran away further leaving them behind.
Also read : Invest in Stock market IF
We can broadly classify investors in Dec2020 in three kinds
- Who have entered market in March 2020 in or after lockdown and seen everything they touch turning to gold
- Who have seen 2000, 2008, 2018 crashes and mostly sat on sidelines in March 2020 crash and still in disbelief that markets made a new life time high in Dec 2020
- Who have adapted themselves fast and riding the trend till now
So as you are reading this article, did you notice where do you belong?
Congratulations, if you are able to see yourself amongst one of the three kinds mentioned above
Question still remains same for everyone : What to do now? Should we buy, sell or keep holding? What’s next : Is it bull market or is crash near?
Let’s read further to understand more about it and see what strategies people can adopt
Case 1. Sell out 100% and wait to re-enter at lower levels
Thsi strategy is for people who
- Are facing Liquidity challenges
- Can’t sleep properly due to fear of crash in markets
- Borrowed money to invest
- Goals are near ( within 1-2 years)
Advantage with these strategy is you may not lose capital if market goes down and may get a chance to re-enter at lower levels. Problem with this strategy is it is impossible for anyone to predict whether market has topped out or not. Will Market go further up and can give you a bigger chance to cash out? Will market come down and give you a chance to enter at lower levels. Nobody knows. Get away from people if they claim to know.
It is always better to leave last 10% on the table and cash out if our goals are near or we have debt to pay because when correction happens, it will not give you a chance to exit at your desired levels
You may need to decide a market point where you should re-enter
Case 2 Go opposite and buy more
I will strongly advised against this. Problem with this strategy is most of us will be invested in 50 + stocks by taking tips from random sources and keeping most of the stocks which are in loss. So if market correction happens, we will not be having enough money to average down all stocks.
In case, you have idle money and have a itch to invest at these levels, in such cases adopt a simple strategy
- Have a watchlist of quality stocks and
- Keep buying from the same watchlist based on quarterly results or in sip mode
- Plan your investment in a staggered manner instead of putting money in single go
- Invest the money which you don’t need for next 5 years
Correct portfolio allocation and conviction in the chosen stocks is a must for investing at these levels
Case 3- Hold and reorganise your portfolio
This strategy is for people
- Who are confused and not sure which strategy one should adopt
- Who have long term views on equity but not sure what to do in such a bullish market scenario
- Who have money available to invest right now but not sure in which stocks
- Who do not need to sell out as no immediate money requirement
Under this strategy, adopt the simple course of action
- Reduce number of stocks to a level which you can track easily. (20 stocks in a portfolio is considered reasonable for an average investor to track)
- Reduce the stocks positions partially or completely which you have bought on tips and not working or in loss. Getting out with a small loss is good at these levels to rearrange your portfolio
- Buy more of convincing stocks with long term horizon of 3-5 yrs.
- Increase the positions in stocks which are showing a promising future and management is walking the talk
What i am doing in this market? My answer is Case 3.
- I have a watchlist which i keep updating based on consistent reading about different stocks and their potential
- I have a process where i keep updating my trailing stop loss for the trading positions on weekly basis
- I am selling the stocks which have run ahead of their fundamentals.
- I am selling the stocks which have hit stop loss levels ( both long term and short term stocks have stop loss levels)
- I am holding stocks which have good story building up and adding more on each quarterly result. In case they looking pricier at this point, i am not adding and just trying to hold and wait for next quarterly results for further action towards buying/selling
- Any new stock which looks promising to me, i am initiating a 50-60% position at this time and waiting for small correction to add more
- I am keeping my cash holding levels consistently between 10%-20%. That forces me to evaluate a new position against my existing positions
So that effectively means
I am not putting new money into the market
I am selling my existing less convincing or loss making positions
I am adding more of existing convincing positions
I am adding new stocks position partially and waiting for small correction in market to add more
I am re-organizing my portfolio for next cycle of market
I am keeping Cash levels close to 20% to handle market correction and adding more.
I am happy to ride with my 80% invested convincing positions
I would not recommend to sell out and sit if you have not borrowed money and are not facing immediate liquidity issues. But for sure remove dud stocks and put that money into other quality stocks as always
Overall, what I learnt from markets in my journey is very simple and easy to follow :
You can’t be 100% invested in market
You can’t be 100% sold out from market.
Whenever I tried to cash out in fear, I lost major gains in next cycle. Whenever I invested fully 100% in greed, I lost good amount of capital and recovery becomes difficult.
Holding and adding to convincing positions seems simple but definitely a task which is not easy
So is this a bullish market — i dont know and neither i want to know as i am working on stock specific action
Will correction happen–The more we go away from March 2020 lockdowns, greater will be the chances of economic recovery and lesser are the chances of crash. Healthy Market correction (upto 15-20%) can still happen and can give a nice entry point. Not sure of whether it will happen next week, next month or next year or not at all!!
Whatever strategy finally you adopt. don’t be a blind follower
Read more on Blind follower here
Wishing you all the best and lots of luck
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Burger King IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Burger King IPO– Company is 2nd largest burger chain in India, started operation in 2014 and fastest international brand to have 200 QSR outlets in Inda
Plan is to target 700 outlets in next 5-6 years.
Offer purpose — Offer for sale (360cr) plus fresh issue of 450 cr. To open new stores and pay some part of loan
Key Service domains – 2nd largest burger chain after McDonald
Risks —
Loss making company as of now. Loss of 119+ cr in six months of current FY21, loss of 76 cr in last year FY20
Offer on food tech apps may harm the business wrt competitors plus McDonald, Jubilant food will definitely try to defend the market share
Fast expansion may lead to more losses in coming years but its a double edged sword and can lead to gains as well
Strength
Post COVID –company will have lean structure and business should have good unit economics
Also because of urban developments and more money in hands to spend, culture of eating in QSR will support the company
Fast expansion can help the company in increasing mkt share
Future
QSR is thriving industry and consumption food business will gain. QSR CAGR expected to grow >20% for next 4-5 yrs
Sustainability looks good, McDonald, Dominos, Subway, KFC have already survived and adapted
Valuations
Loss making company and PE is negative
Last 3 Yr Revenue CAGR at 53.4%; Total Debt as of Sep 2020 at 195 Cr
As compared to peers , valuations are reasonable in terms of mcap/sales or mcap/ebitda
Should we apply?
People can subscribe looking at growth prospects
Listing day may see good gains. Recommended to hold long
If available on listing day around 50-70 Rs, one should add more from 3-5 yrs perspective for possibly good gains
Also Read
UTI AMC IPO crisp Summary — Listing with loss as shared
CAMS IPO crisp summary — Listing with 20% gains as shared
Angel Broking IPO crisp summary –Listing with loss as shared
Happiest Minds IPO crisp summary –Listing with substantial gains as shared
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Investor Dilemma : Nash Equilibrium
Nobel prize winning economist John Nash created the pay off matric for prisoner’s dilemma.
Focusing on Nash equilibrium is important for best desirable outcomes
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Likhitha Infra IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Likhitha Infra– (approx 32 yr old company) is an Oil Gas Pipeline Infrastructure provider in India. Focused on laying pipeline networks, Operation and maintenance of city gas distribution companies in India
Offer purpose — 61 crores to meet working capital requirement
Key Service domains – Cross country pipelines, City gas distributions including CNG stations, Operation and maintenance
Clients -Established players from Oil and Gas industry
Risks —
Major revenue from few clients may deprive the company from pricing power
Inherent risks due to long term nature of projects
Future
CGD is increasing in India and company is at right place for its business to grow with
Strong client base, Efficient business model
Strong project execution capabilities , Diversified geographical presence in India
Valuations
Seems attractive
Should we apply?
People can subscribe for long term growth prospects
Listing day may see gains . Recommended to hold and buy more if listed at IPO price +/-10%
Also Read
CAMS IPO crisp summary — Listing Awaited
Angel Broking IPO crisp summary –Listing Awaited
Happiest Minds IPO crisp summary –Listing with substantial gains
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Mazagon Dock IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Mazagon Dock– Defense PSU which supplies warships, submarines and destroyers to Indian Navy and Coast Guard.
Offer purpose — Divestment by Govt. of India
Key Service domains – Warship building, Refit and repairs, Export
Clients -Indian Govt.
Revenues from Key Services–95%+ for building warships, submarines
Risks —
Sole dependence of Ministry of defence budget which is not increasing rapidly in recent years especially for Navy
Weak growth prospects and volatile profits
Long gestation period for the orders and revenue
Future
Company wants to tap repair and export orders but not successful yet with only 2% orders of outstanding book
Dominant Player in warship building industry with huge order book
Refit and repairs constitute 3.5% of revenue and company wants to increase it to 15-20% in coming years
Valuations
Seems reasonable and lower than other listed entities like Garden Reach and cochin shipyard
Should we apply?
People can avoid to subscribe due to weak growth prospects
Listing day may not see any gains . Recommended to book profits if any on listing day
Long term investing only when growth drivers are clear
Also Read
CAMS IPO crisp summary — Listing Awaited
Angel Broking IPO crisp summary –Listing Awaited
Happiest Minds IPO crisp summary –Listing with substantial gains
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
UTI AMC IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
UTI -In top 10 AMC , manages mutual funds, PMS, NPS, AIF and offshore funds
Offer purpose — Offer of sale by existing stakeholders
Key Service domains -Managing domestic mutual funds, PMS, alternate investment funds, retirement unds and offshore funds
Clients -Postal and retiree PMS and NPS services. High concentration in B30 markets segment
Revenues from Key Services–Domestic Mutual funds AUM. PMS and NPS income constitute only 3% although with higher AUM
Risks —
SEBI policy like change in total expense ratio, re-categorization of various schemes, upfront commissions in the past led to lower incomes. Future policy changes can also pose a risk
Large portion (almost 75%) of UTI AMC assets under management in 6-7 active funds, so large scale redemption can be cause of worry
Falling Market share and fall of revenue from operation in last two years is overhang
Financials are on weak foot with ROE mostly 11-13% on an average
Future
Increasing awareness among people about equity investments and growing popularity of Mutual funds can boost revenues
Increasing concentration in B30 Markets segment can boost revenues where they can charge higher TER
Valuations
Optically cheaper valuation as compared to HDFC AMC and NIPPON AMC
Should we apply?
Good chances of allotment.
While valuation, business seems to be in right place but financials are only one thing which leads to– Avoid for IPO subscription
Listing day may see -10% to +10% gains . Recommended to book profits if any on listing day.
Wait and watch policy is best for long term investment in UTI AMC
Also Read
Mazagon Dock IPO crisp summary
CAMS IPO crisp summary –Listing Awaited
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Borrowing against Investments : Beware or Be Aware
In times of trouble, lot of avenues available to monetize your investments and borrow against them.
You need to be aware of what is available and at what rate? Kind of repayment flexibility available. Read more
Angel broking IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Angel Broking – the fourth largest broking firm in India as per active client accounts on NSE. The company provides its services through online and digital platforms on the back of a network of more than 11,000 sub-brokers as on June 30, 2020.
Offer purpose — 600cr offer for sale + fresh issue. 40% will be used for working capital requirement by company
Key Service domains – provides broking and advisory services, margin funding , loans against shares and financial products distribution to its clients.
Clients -80% from tier 2 and tier 3 cities
Revenues from Key Services–75% from broking. 10% from Margin funding
Risks —
The company’s main revenue source is the broking business, and company has not diversified into wealth management kind of services
Intense competition in broking business
Extensive supervision and regulation by various regulatory bodies that may cause fluctuation in earnings e.g. recently SEBI margin trading rule
Future
Flat fee-based model, a developing derivatives market, the use of modern technology, lower penetration of mutual funds and shares and debentures in household savings and customer acquisition through digital medium enable the company to scale up its business easily.
Digital acquisition of customers will save cost
Valuations
Little on higher side.
Should we apply?
Moderate chances of allotment due to small size.
People can avoid to subscribe
Listing day may see see moderate gains . Recommended to book profits if any on listing day
Also Read
Happiest Minds IPO crisp summary –Listing with substantial gains
Route Mobile IPO crisp Summary — Listing with substantial gains
Rossari biotech IPO detailed summary –Listed with substantial gains
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Chemcon IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Chemcon– is a manufacturer of specialized chemicals, such as HMDS (Hexamethyl Disilazane) and CMIC (Chloromethyl Isopropyl Carbonate) and is market leader in both products. This are predominantly used in the pharmaceuticals industry, and inorganic bromides, namely Calcium Bromide, Zinc Bromide and Sodium Bromide, which are used as completion fluids in the oilfields industry
Offer purpose — 318cr Complete offer for sale by promoters
Key Service domains – Pharmaceuticals and oilfields industry
Clients -Hetero Labs Limited, Laurus Labs Limited, Aurobindo Pharma Limited, Sanjay Chemicals (India) Private Limited, and the key customers of Oilwell Completion Chemicals include Shree Radha Overseas, Water Systems Specialty Chemical DMCC, Universal Drilling Fluids and CC Gran Limited Liability Company.
Revenues from Key Clients— 67%
Revenues from Key regions–32% exports
Risks —
Limited product range
Significant portion from few customers
Promoters past is the biggest risk. There are cases of non-compliance and criminal proceedings
Future
Company has grown revenues and profits and partially supported by ban of chemicals in China to support environmental policies
Due to specialty chemicals and market leader, company stands at good point to gain
Valuations
Reasonable considering peers in India in specialty chemicals. Fundamentals seems promising as of now
Should we apply?
Less chances of allotment due to small size. People who understand chemical business well can take the risk of applying
Less risk taking people can avoid
Listing day may see see moderate gains . Recommended to book profits if any on listing day
Keep an eye on promoter walk the talk scenario if holding for long
Also Read
Happiest Minds IPO crisp summary –Listing with substantial gains
Route Mobile IPO crisp Summary — Listing with substantial gains
Rossari biotech IPO detailed summary –Listed with substantial gains
In case you have any questions/ queries, please feel free to reach me through Contact Form
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CAMS IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
CAMS– almost two decades of experience –is a technology-driven financial infrastructure and services provider to mutual funds and other financial institutions. Aggregate market share of approximately 70% based on mutual fund average assets under management (“AAUM”) managed by their clients and serviced by us
Offer purpose — 2258cr Complete offer for sale by promoters
Key Service domains – Mutual funds, AIF business, KYC registration, Insurance services business
Clients -SBI Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, and Aditya Birla Sun Life Mutual Fund are serviced by CAMS
Revenues from Key Business— 85% ( mutual funds)
Risks —
Huge dependency on Mutual fund business with major revenue from it (more than 85%)
Significant disruptions in information technology systems can cause it a loss
Slow revenue growth in past few years
Risk of Regulators.
Pricing power can be a hurdle to grow earnings
Future
Long term growth seems reasonable and demand seems to increase in coming years with Indian Mutual fund industry set to grow
Almost all Major mutual funds are clients
Valuations
Expensive but considering almost duopoly, it can undergo time correction
Should we apply?
High chances of allotment. Less Risk taking people can avoid
Listing day can see (-8%) to 20% . Recommended to book profits if any on listing day
3+ year holding can give good returns even from this price if things workout well
Also Read
Happiest Minds IPO crisp summary –Listing with substantial gains
Route Mobile IPO crisp Summary — Listing with substantial gains
Rossari biotech IPO detailed summary –Listed with substantial gains
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Route Mobile IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Route Mobile– almost 16 yr old company –technology service provider specializing in communication services to enterprises. Acts as communication platform as a service
Offer purpose — 360cr as offer for sale by promoters and 240 cr as fresh issue. so 40% will flow to company to reduce loans, acquire companies etc
Key Service domains – Messaging services and Call center services
Clients -ICICI Bank, State Bank of India, Skype, Emirates Airlines, Bank of Maharashtra, WeChat, OSN and Viber.
Revenues from Key regions — 82% from exports, 12% from India,
Revenues from clients— Largest client 15% , 64% from top 10 clients
Risks —
Greater dependency on 3rd parties mobile network operations,Rely on 3rd party technology systems and infrastructure
Major revenues from limited client. So high concentration risk, although total clients 2500+.
Risk of potential claims resulting from the client’s misuse of its platform to send unauthorized text messages in violation of TRAI regulations.
Future
May gain from clients consistent need to serve more customers with limited resources
Billable transaction increasing at good rate and most companies pay it in advance
Long term growth seems reasonable and demand seems to increase in coming years
Valuations
Similar to peers in India and less than globally listed peers
Should we apply
High chances of over subscription and less allotment
Possible gains on Listing day can be seen but caution is advised to book profits if any
2+ year holding can give substantial gains if things workout well
Also Read
Happiest Minds IPO crisp summary –heavily subscribed
Rossari biotech IPO detailed summary –It came out with flying colors
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Happiest Minds IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Happiest minds– approx 9 Yr old company in IT digital services with cloud infrastructure, SaaS, cyber security
Key Service domains – Product engineering services ( approx 50% of revenues), Infrastructure management and security services ( approx 20% revenues), digital business solutions (approx 26%)
Customers — Software development services for independent vendors like Amazon web services, Intel, IBM, Microsoft, Salesforce
Revenues from Key regions — 77% from US, 12% from India, 11% from UK approximately
Revenues from industry — Edutech, hitech and BFSI approx 50% of revenues
Risks —
Promoter have 29% shares pledged as of now
Company wrote of accumulated losses last year
Case for discriminatory employment
Future
May gain from WFH culture in coming years
May gain from cloud related digital services and cyber security services
Valuations – Lower than Mindtree and NIIT,
Should we apply
If you already have something related to digital IT services in your portfolio, you can avoid.
High chances of over subscription and less allotment
Possible gains on Listing day can be seen but caution is advised to book profits if any
Long term growth seems reasonable
Last one Rossari biotech IPO with prediction of 20% gains and good to hold for long term –It came out with flying colors
ROSSARI BIOTECH IPO : Quick analysis
De-listing Season
There are few companies who have announced plan to delist from Indian bourses. Most of these companies are either planning to sell their holding to global players or promoters want to take private control citing the markets not giving right valuations to their company stock prices.
Prominent names inlcude
Vedanta
Adani Power
Hexaware
and latest in the list is
All cargo logistics
This is different from delisting due to other reasons like Sancia Global Infraprojects Limited and Delma Infrastructure Limited where no trading happened for six months and these companies were planned to be removed from BSE exchange some time back
YES BANK : Path to recovery
Times are changing : HDFC bank ?
Impairment Charge : BEWARE or BE Aware
Life Insurance : MIXED BAG
SIP Pause Facility : BE AWARE
REAL ESTATE : Is wait worth?
Looking at Knight Frank report and few article here and here , it seems best to wait for a quarter or half year to get the best deal out of real estate.
Real estate sales for residential units at low and office units vacancy at high
SEBI Dilemma : BROKER or RETAILER ?
A move which seems bad for both retailer and broker in its first look!!! But devil lies in details. Its a move which will help everyone
SEBI aim is to check rampant usage of margin money paid by one client for another. The whole exercise looks to protect retail investors and in my view its a very good move for long term. This move i believe will limit the number of people leaving markets forever with losses as it may reduce the risk a retail investor can take with his money.
Brokers need to get this point that in long term their operations become efficient and their survival improves because investors will increase.
Retail investor has to understand that limiting margin will help them to take calculated risks and improve their chances of profit
BOGUS people will be filtered out. That’s the expected bonus
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
GROWTH = MOTHERSON SUMI !!
Investor presentation here
Also Read : https://alpha-affairs.com/2020/07/05/automotive-key-mega-trends/
This is NOT a BUY/SELL/HOLD Recommendation. It can be used for educational purposes. There could be lot of things which which can have impact on share price and might be missed here due to lack of information or oversight etc.. Do your own diligence & contact your expert financial adviser before making any investment decision.
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Decide the Right Question to ponder upon
So instead of worrying about market fall or rise, decide on whether the companies invested are sound and safe and can increase your wealth in right proportions
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Guide to navigate tough times financially
Conserve Bank Balance and hold cash as much as possible. Keep expenses at minimum
Prepare mentally for a pay cut or a job loss or bench job with reduced pay. Use that time to improve your skill set and come out mentally stronger. Don’t hesitate to seek help from experienced people
Avoid borrowing even from friends or relatives. Switch to debit card for optimum spending.
In case unable to pay credit card dues, opt for moratorium or switch your credit card dues to personal loans (available at lower interest rates)
Make a mental list of assets which can be liquidated if required and decide the order of liquidation in case of mishap. It can be gold, equity funds, artwork etc. Remember these material things can again be bought in Good Times. These are the times when your life your precious one’s life & well being is most important.
Keep looking for opportunities in your job and life which can spring up in this time of crisis.
Discount extreme theories of pessimism and optimism. Keep your head cool and high with confidence.
Keep helping people in need during the crisis. Social bonds created during this time will last longer
Stay Safe,Follow Social distancing and remember prevention is better than cure
Also Read :
You should not invest in Stock Market
You should invest in Stock Market
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Weekend HookUp: March 29, 2020
Weekend HookUp: 29 March, 2020
Life: The 1 Percent Rule (James Clear)
Investment: Unknown man became Billionaire from one Idea (Ridgewood)
Psychology : Investment Quotes (DollarsandData)
Health: Sugar : The Bitter Truth (Youtube)
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Berkshire Hathway 2019 (latest) & 2018 Annual Letters
https://www.berkshirehathaway.com/letters/2019ltr.pdf
https://www.berkshirehathaway.com/letters/2018ltr.pdf
Also Read :
You should invest in Stock Market
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Avoid 10 Basic Mistakes in Journey of Wealth Creation
Avoid putting all eggs in one basket
Avoid Ponzi schemes e.g. Emu farms, Speak Asia, Tulip Bulbs etc
Avoid buying under construction property as much as you can
Avoid buying second house/flat for renting purpose only
Avoid liabilities and build assets first e.g. buying home should come first and buying a car second
Avoid Mixing Investment and Insurance e.g. ULIPS or Life endowment policies
Avoid spending first and saving later
Avoid credit card amount rollovers to next billing cycle
Avoid investing on tips
Avoid having short term horizon for your investments
Also Read :
You should not invest in Stock Market
You should invest in Stock Market
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Want to Start investing in Stock Market
As lot of people keep asking me regarding the specific financial advice when entering a stock market, this quick-read article gives you some pointers before you jump into stock markets
Start Early
- Best advice anyone can give to you is to Start Early and Early means NOW
- Whether you are earning 5k/month or 5lac/month, you need to start asap.
- Only when you start early, you can finish or reach your goal early
Emergency Fund
- A must step!! Build an emergency fund equivalent to 3-6 months expenses
- Understand the importance of emergency fund. There is no second thought about it.
- Always maintain the emergency fund and review it on yearly basis.
- Increase the emergency fund every year
Read in detail : Emergency funds
Buy Life Insurance & Health Insurance
- These two insurances should be in addition to any insurance cover your employer provides.
- Buy an appropriate term policy life cover (minimum 25 times of annual income)
- Buy an adequate health insurance (minimum 20 lacs)
Also Read : You should invest in Stock Market if
Also Read : You should not invest in Stock Market if
Become Debt free
- Apart from home loan, there should not be any debt.
- Clear off your credit card debts, gold loans, car loans.
Establish a household budget
- Maintain an elaborate budget with expenses under different heads
- Don’t run away from noting down every single expense ( every rupee for that matter)
- Keep %age of money for stock market investment and %age of money for other asset classes
- Follow Save first, spend later approach.
Follow Goal based investing
- Split your saving across different and appropriate set of investments
- Park your money in Fixed deposits, Recurring deposits, liquid funds, debt funds, gold.
- Start investing in Stocks and mutual funds when you are done with above steps
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Emergency funds : First step in personal finance and gateway to wealth creation
Importance & need of emergency funds
Emergency fund is money which comes to your rescue when something unexpected pops up in our daily routine. One needs an emergency fund as life is very unpredictable. Something that can go wrong will eventually go wrong at wrong time.
Just think of emergency fund as a lifeline thrown at you when you are drowning and this article is about creating that lifeline yourself
One may need to travel unexpectedly (we all know how much bomb a ticket costs at last minute) or there could be medical emergency (Generally Life insurance or medical insurance will work for this but by the time insurance claim comes to you, you need to survive yourself and family and pay hospital bills) You need funds for that.
Or worse if you are working in an industry where jobs are not secure and layoffs are frequent, such a fund becomes mandatory.
You wouldn’t be forced to reach out to family or your so called friends for help and further You also wouldn’t have to accept the first job offer that lands on your plate in such a scenario
How much to keep aside for emergency funds
Basic Thumb rule is to have minimum of 3 months and maximum of 12 months of expenses as your emergency funds. e.g, if your monthly income is Rs. 50000 and you spend Rs 45000 month on an average and save 5000 Rs per month then you should have minimum 45000*3 =135000 as your emergency fund.
- Minimum of 3 month expenses in highly liquid form (365*24*7)
- Minimum of 3 month expenses in fast-accessible liquid form (T+1 days)
- Approximate 3 month expenses in easily accessible liquid form (T+3 days)
- Approximate 3 month expenses to be put aside in somewhat inaccessible liquid form e.g. 9 month fixed deposit or 1 year fixed deposit
Best way to calculate emergency fund
- Monthly Expenses should cover Home EMI, personal loans, car loan installments, household expenses, school fees, grocery bills, phone bills, personal grooming expenses etc.
- Best way to arrive at monthly expenditure is to divide yearly expenditure by 12. This is only possible if you know your yearly expenditure by having household budget and maintain every single expense in that.
- Second best way is to add all major expenses in a year and divide by 10 (instead of 12) to arrive at approximate monthly expense.
- To hedge against inflation, multiply this emergency fund by 1.1 to arrive at real number assuming a 10% inflation in education, travel & medical fields
Review of emergency funds
- Review it on yearly basis
- Keep adding some money to emergency fund based on increased expenses
- Adjust for inflation and add funds accordingly
- Foresee any emergency in next few months and add funds
Where to keep emergency funds and accessibility time
| Asset | %age of emergency fund | Storage mode | How to access | Accessibility days |
|---|---|---|---|---|
| Cash | 15 % | Safe vault at home | Direct | 365*24*7 |
| Liquid Bank Balance | 50% | FD/RD/Saving account | Cheque/NEFT/ IMPS/UPI | 365*24*7 to T+(1 to 2) working days |
| Debt Mutual Funds | 30% | Ultra short duration funds, liquid funds | Demat account/ Cheque/ NEFT | T+(1 to 2) working days |
| Gold | not more than 5-10% | Safe vault at home | Sell to Jeweler | Jeweler working hours |
| Other avenues which can be used | How much % to use in case of emergency | How to use | Advantage | Disadvantage |
| Credit card | 25% | Make a habit to not cross 75% of allocated limit. Reserve 25% of credit card limit as emergency fund usage | It will give you 20-40 days to arrange funds from other resources. | Debt trap |
| Real estate | Neither recommended nor preferred | Additional plot/flat can be used to serve this purpose | Huge amount will be available | Highly illiquid. May be sold at high discount to market in emergency and may take months |
| Stocks/ equity Mutual funds | Neither recommended nor preferred | Sell in market | Emergency funds may grow faster | May be sold at high discount to market in emergency. T+3 working days to access funds |
Also Read :
You should not invest in Stock Market
You should invest in Stock Market
Gateway to Wealth creation
You can safely assume the emergency fund as gateway to wealth creation. Until you pass this gateway, dont dare to think of entering stock market.
The point i want to bring to your attention is — if you have build up emergency fund and saved enough money further (approximate 2 year expenses) in bank account then such a huge money can give you access to new opportunities in stock market.
Let’s say the economy crashes and potential layoff’s are round the corner and eventually stock market crashes and asset prices are below their intrinsic values. In such a scenario, instead of selling your stocks at penny prices, you would have enough disposable money to take advantage of stock market and build up new positions without fear.
Do keep in mind that Stock market is a risky place and there could be times where the market is down for quite a long time and you do not want to sell your securities at highly discounted rate, this kind of emergency fund may help you to pass through such bad times without worrying about any unforeseen risks in your daily life.
Last but not the least You need to have more than few of the personal qualities to succeed e.g.
- Always maintain the emergency fund and review it on yearly basis.
- Increase the emergency fund every year
- You have willingness to admit to mistakes and flexible to change your views.
- You do not panic frequently at home/office
- You can deal with uncertainty with ease
- You have disciplined approach and follow process instead of gut feelings in decision making
- You are self reliant and willing to do an independent research
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
ALPHA AFFAIRS 