Do you know how many people investing and/or trading in equity markets truly succeed over long term? Success here means increase in wealth over their investing lifetimes. This group of people includes individual retail folks and professionals. I am sure many of us would have no clue. I do not have any hard core reference to share; however, I can recall reading various percentages that range from 1% to 7%. Without going in specific data points, my observation has been every time this is less than 10% of investing population. More than 90% of the folks will lose money in equity markets over their investing lifetime. Quite startling but this is very true.
We as individuals focus too much on one or two big time success or multi baggers, but ignore the importance of sustainability and consistency. We fall into the “Chalta hai” trap. Long term success is not built on few multi-baggers. Long term success is built on multiple average successes that are sustainable over time. Continue reading rest of this article…
Blue Star Limited (BLUESTARCO) is India’s largest central air conditioning company with an annual turnover of Rs 2574 crores, a network of 29 offices, 5 modern manufacturing facilities, 700 dealers and around 2600 employees. Blue Star primarily focuses on the corporate and commercial markets. These include institutional, industrial and government organizations as well as commercial establishments such as showrooms, restaurants, banks, hospitals, theatres, shopping malls and boutiques. It also has leadership in the field of commercial refrigeration equipment ranging from water coolers to cold storages.
Voltamp Transformers Limited (VOLTAMP) is one of the leading player in customized transformers for industrial applications. It has a niche in 132kV market segment and now looking to expand upto 220kV market segment. The key aspect that I like about Voltamp Transformers is its focus on niche market. It has created a space for itself in industrial segments, has zero debt, and focus of controlled growth.
I take a considerable amount of time to perform a thorough quantitative and qualitative evaluation for any stock or the company. I believe it is necessary since I am investing for long haul. How does a one month or two month matter when I am attempting to visualize for next 10 years or more. Yes, I agree delaying couple of months will make me miss the window of opportunity or as the stock investing lingo says, missing the multi-bagger.
Media pundits and business experts are again beating the drums of bonus shares from Reliance. And we all individuals, without giving the thought, start beating the drum of the bonhomie, and are rejoicing that we are getting something for free. Because it is termed as “Bonus”, it is free and we all should be happy for it. Happy that company management is thinking about shareholders and giving them “Bonus Shares”. Coming from school of “value thinking” I believe this is fools paradise. We have lost our ability to think rationally and then make a judgment call. Let us discuss little bit more….
Holding companies Can Be Good Long Term Investments
I try to keep things simple and focused. Style and panacea does not give you sustainable returns. Your sustainable returns comes from substance behind those stocks. All holding companies are not created equal, and hence all cannot be grouped together as good or bad. As an individual investor, you need to separate holding companies that have substance and fits your portfolio objectives. Continue reading rest of this article…