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How I picked my first multibagger stock ?

Disclaimer :-  This is not stock recommendation. Do your own research before considering or buying any stock. During my college days one of my roommate bought microwave oven and with this he got  very simple small corrugated box with brand name printed over it. When we unboxed, inside of it was a very simple but quit heavy glass bowl. It was simple, unattractive but quality product. This was the first impression of the company and its product. My roommates were busy in checking the oven and between this I was resting on bed with laptop on my lap checking financial status of the company. And whatever I saw, I started salivating.  Company name was " Borosil Renewables Ltd ". Company founded in 1962 was totally debt free and company reserve was more than its liabilities, from last ten years constantly growing its fixed asset and from last four years company was profitable. Company was working in two different industries, first solar glass manufacturing and second Lab equipment m

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What will be bottom of stock before it starts rising?

  Buying at bottom and selling at peak is myth. Soon you understand this better for your investment. Maybe you have done this before but be honest with yourself this is pure luck. Even ace investors have never bought at bottom and sold at extreme peak. So stop searching for bottom of stock prices and try to find value before buying any stocks supported by its strong fundamentals. Continuously looking for bottom is naive thing, you may miss some opportunities. 

Why some investors give stocks so high PE?

PE ratio also known as Price to Earning ratio and the most popular ratio among the investors. They use this to identify undervalued or overvalued stocks.  we already covered what is PE ratio and how you can utilize this ratio, if you want to learn about this then simply click here . The very basic logic behind PE is, If earnings low then PE high and If earning high then PE low. In general parlance if stocks PE high then it considered as overvalued and if stock comes with low PE then it considered as undervalued. Generally people avoid investing in stocks with high PE but everything comes with exceptions.  Stocks with high PE means "people and investors are willing to pay high prices for low earning stocks". Why people or investor doing so ? there can be various reason behind this, after all its a stock market and everyone have their own perception. Reasons can vary person to person. There can be various reason for paying high PE stocks and one reason can be,  Investors are ve

My Investments and COVID-19

Everyone has witnessed huge market decline in the month of March when our PM Narendra Modi suddenly announced lockdown to tackle covid pandemic. Sensex stock market index reached all time high of 42273.87 in January of 2020 and from there it fallen down to below 26000 pts, nearly 40 % down. And from there it started healing. My Investments and COVID-19 Before this great fall my all investments were in undervalued stocks with very low P/E multiple, attractive earnings and exciting track record. Thanks to this quality stocks my own portfolio fall nearly 22 %. Although my 22% of capital vanished, I feel very delighted my portfolio beaten the market index(Sensex down nearly 40%) with significant points.  In the last year of your college generally you are not backed with huge capital support, and your capital is very limited. So securing capital is my first priority. Back on the track, I sold all the stocks with 22 % capital loss and secured rest of the principle capital

What Warren Buffett said on fear and greed ?

What Warren Buffett said on fear and greed ? In his 1986 annual letter to Berkshire Hathaway's shareholder Buffett said very interesting thing about fear and greed. He also accepting that anticipating market is always out of his circle of competence. For me these lines are the best lines of 1986 letter. So I putting whole para as it is in front of you. please read- "What we do know, however, is that occasional outbreaks of those two super-contagious diseases, fear and greed, will forever occur in the investment community. The timing of these epidemics will be unpredictable. And the market aberrations produced by them will be equally unpredictable, both as to duration and degree. Therefore, we never try to anticipate the arrival or departure of either disease. Our goal is more modest: we simply attempt to be fearful when others are greedy and to be greedy only when others are fearful."