We all want to succeed in investments, but there are very few us who are willing to prepare for this success. Preparing and positioning yourself to take advantage of opportunities is something that is not learnt easily. It takes time and effort. What kind of effort are you making? I am continuing to expand watch list and buy list. I would like to be prepared for what I want to buy at next opportunity or when they fall in my fair value range. Following are three large caps that I screened.
Container Corporation of India Ltd (CONCOR): It is a Indian PSE wherein the Indian Government holds 63% shares. The company provides multi modal logistics services for domestic and international containerization trade. It consists of inland transportation services by rail for containers; management of ports, air cargo complexes; and establishing cold storage chains. In India it has largest network of 59 inland container deport and container freight stations. Continue reading rest of this article…
In last one year or so, how many times have you heard and read that “Buy and hold investing is dead”. I bet it is numerous times. I am willing to bet even more on the fact that almost 95% of 30 year old or below will make you believe buy and hold is dead and it does not work. And the examples cited are turmoil in 2008. In addition, the business media and brokerage houses will add fuel to this fire. Well, if they do not encourage you to trade, how will they survive? how will they get their commissions?
In an earlier post, I mentioned that I use XIRR as one of the metrics for measuring the individual stocks performance in my portfolio. In simple terms, XIRR is the interest rate you would need to make the same money from any interest bearing account (with same investments). While XIRR can be extended at portfolio level, in today’s post, I am only discussing how I use XIRR at individual stock level.
Measuring Progress – XIRR as Personal Rate of Return
In this context, I use few different monitoring and/or performance metric. Earlier, I have talked about yield on cost as one metric to determine cash flow (or dividends) received from my original investments. YOC is a very good metric to measure the growth of your dividend based cash flow over a period of time. However, it has a drawback. It does not take into account the variability of capital invested. The price of the stock does not remain static. It keeps changing over a period of time.
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