Stock Market

~ Understand business
~ Don't chase momentum too much
~ Avoid speculation/ noise/ hopes
~ Avoid FOMO
~ Avoid Averaging down
~ Avoid Spontaneous trades
~ Don't jump into volatility
~ Have goals, have strategy
~ Reduce losers
~ Control emotions
~ Review self often

Thread - How to spot a potential multibagger

Multiple fundamental parameters however we cannot be rigid on any of these parameters.

Be flexible to interpret things from bigger picture point of view.

Input 1 ~ No doubt on business survival

Come whatever event (health crisis, economic bubbles, economic recessions, political events, etc.), there should not be any doubt on business survival.

Earlier it used to be only food companies into this category, but now there are many.

Input 2 ~ Visible & sustainable growth potential

At any point of time, we can think with a certain common sense approach that if management wants, there can be a sustainable growth at any point of time.

Obviously this growth may come thru innovation, optimization, etc.

Input 3 ~ Management has vision towards growth

Management should be forward looking, should be able to read into future to build right growth avenues, should be considerate towards every stakeholder.

In addition management should be ethical & should have good social image too.

Input 4 ~ Promoter stake>50%

There should be a reasonable skin in the game from promoter.

If in case there is a low promoter stake, then promoter should increase stake at every possible opportunity.

Also pledging should either be zero or minimal.

Since the debate on 'What is quality' is never ending, here is a thread on few points that I feel useful in judging if the company is a quality company or not.

Have a look at the entire thread & please add more useful points from your end.

Please RT for wider participation.

Quality company - Point 1

- Management has never been into any corporate governance issue so far & sounds so clean that it may never get into any corporate governance issue in future too.

Quality company - Point 2

- Besides corporate governance & beyond the company, management has never been into any wrong doings in the public domain, viz. any fraud or criminal activity.

Quality company - Point 3

- Management doesn't come too often on media, into investor meets, meet 1-1 with investors.

Such management focus on business rather than investors.

Quality company - Point 4

- Management doesn't grow business too aggressively.

Conservative management with a milestone based approach helps better in long run.

Model Portfolio 3

Time Horizon 3 years or earlier ~ Depends on if the stock performs significantly well in faster time. Review of business performance important every quarter.

This portfolio is suitable for aggressive investors who believe in risk taking and look for growth

Name %allocation

~ Laurus Labs 15%
~ Balaji Amines 15%
~ Deepak Nitrite 15%
~ Kopran 10%
~ Pokarna 10%
~ Eveready 10%
~ Dynpro 10%
~ Manorama 5%
~ Adani Enterprises 5%
~ SHIL 5%

~ Laurus Labs
~ Kopran

My top two picks in pharma sector are Laurus Lab and Kopran.

These have good earnings predictability, growth visibility & significant undervaluation. Growing from small to medium and to big.

Earnings can grow and valuations multiple can grow accordingly.

~ Balaji Amines
~ Deepak Nitrite
~ Dynpro

These three are my top picks in Chemicals.

These have good earnings predictability, growth visibility & significant undervaluation. Growing from small to medium and to big.

Earnings can grow and valuations multiple can grow accordingly

~ Pokarna
~ Eveready
~ SHIL

These three are my top picks in Home Consumption.

These have good earnings predictability, growth visibility & significant undervaluation. Growing from small to medium and to big.

Earnings can grow and valuations multiple can grow accordingly.

Peter Lynch is a great investment manager of all time. He is famous for introduction of PEG. (P/E growth)

According to Mr. Lynch the faster the company grows, the higher the P/E ratio you should pay for that company

Here is a Thread - Peter Lynch thoughts & my interpretations.

1. Investing is fun, exciting & dangerous if you don’t do any work

Fun becoz we tend to learn so many things

Exciting becoz it give great moments of celebration because of unimaginable wealth

Dangerous becoz it can be addictive due to greed & people may start finding shortcuts

2. You can outperform the experts if you use your edge by investing in companies or industries you already understand.

Study businesses, apply common sense and invest into something which you understand.

No need to adventure & no need to be part of anything or everything.

3. The stock market has come to be dominated by a herd of professional investors. You can beat the market by ignoring the herd.

Stay away from noise & crowd to come out as a winner.

4. Behind every stock is a company. Find out what it’s doing

The underlying entity of a stock is business. Choose to ignore everything else, but never ignore to study business.

Company includes few more things in addition to business like management, etc.

Thread - How to spot a potential multibagger

Multiple fundamental parameters however we cannot be rigid on any of these parameters.

Be flexible to interpret things from bigger picture point of view.

Input 1 ~ No doubt on business survival

Come whatever event (health crisis, economic bubbles, economic recessions, political events, etc.), there should not be any doubt on business survival.

Earlier it used to be only food companies into this category, but now there are many.

Input 2 ~ Visible & sustainable growth potential

At any point of time, we can think with a certain common sense approach that if management wants, there can be a sustainable growth at any point of time.

Obviously this growth may come thru innovation, optimization, etc.

Input 3 ~ Management has vision towards growth

Management should be forward looking, should be able to read into future to build right growth avenues, should be considerate towards every stakeholder.

In addition management should be ethical & should have good social image too.

Input 4 ~ Promoter stake

There should be a reasonable skin in the game from promoter.

If in case there is a low promoter stake, then promoter should increase stake at every possible opportunity.

Also pledging should either be zero or minimal.

Keyboard shortcuts guide .

One NBA player has sold more than 200 million pairs of shoes, but you won't find them at Nike, Adidas, or Under Armour.

Time for a thread 👇👇👇

1) First, some history...

From Clyde Frazier & Puma to LeBron James & Nike, signature shoes have been a staple in the NBA since the early 1970s.

Simply put, every player wants one.

Including 20-year-old Shaquille O'Neal, who met with Nike & Reebok before the 1982 NBA Draft.

2) When @SHAQ met with Nike before the 1982 NBA draft, he made his desire clear:

"I wanted my own shoe."

The result?

Nike declined, as they had just signed Alonzo Mourning.

"That pissed me off...They didn’t escort me out, but the meeting was short.”

Next up, Reebok.

3) After Nike declined to offer him a signature shoe, Shaq received a $15M offer from Reebok — which included a signature shoe & apparel line.

Even better?

Shaq demanded complete creative control.

“I wanted to create all of my own commercials.”

They obliged, and he accepted.

4) From 1992 to 1998, the relationship between Reebok and @SHAQ flourished.

Not only did they make 6 signature shoes together, but Shaq turned into a perennial All-Star — benefitting Reebok with millions in sales.

Everything was great until one interaction changed everything...

Top Stock Market Analyst,

@Ayushgarg1997
@SandeepKrJainTS
@JayThakkar22
@MarketScientist
@Vishvesh03
@AmitabhJha3
@ashish_tn
@Rishikesh_ADX
@MaverickAmit01
@ashish_tn
@sumeetbagadia
@nishkumar1977
@kiran_jadhav_
@kuttrapali26
@AnilSinghvi_

Anyone Else??

10 ideas that changed my life: (thread)

Illustrations by @visualizevalue

1/ Get more done by doing less.

2/ You can't get better unless you get started.

3/ Zoom out. It's getting better. (IP via @behaviorgap)

4/ 'Normal is an illusion. What is normal for the spider is chaos for the fly.' — Charles Addams

Keynotes from @jackbutcher talks on "Marketing Lessons " with @david_perell.

"Build once, Sell twice."

How to create a online presence using the Internet to communicate and connect with the idea?

Why is coining language so important in brand packaging?

" The world doesn't reward the people who have ideas but reward the people who are best at communicating their ideas." @david_perell

One of the most important marketing lessons is to understand the power of coining terms and language.

1// Coining terms means coining the ideas, the path that let other people remember, share and make sense of the world.
Creating ideas is a means of building a profitable business that remains in people's mind.

2//. " People grow your brand as a result of sharing your language."
Coining language enables the spread of an idea which increases the market for a brand.
To market a brand learn how to communicate the idea.

3//. The words used to promote a brand is a description of the idea.
"The name of the brand itself is a way to explain the service." @visualizevalue
To communicate through language, we must understand how can we phrase an idea in the minds of people.