Views on Life & on Equity Investing

Wonder, Wealth & Abundance

A new (and improved) certain multibagger & Fundraising appeal

with 6 comments

Dear all,

I am in the process of shortlising another good pick and potential multibagger, I need to establish contact with management before writing it publicly to be more convinced. I hope to have it out for you in next few days.

If you guys do end up making money from recommendations here and you would like to give any credit at all, I would urge you to donate to a charitable cause that I believe to be noble. Your money is well spent on restoring eye sight of people who cannot afford it. For a 500Rs donation you can get cataract surgery for the under privileged, or sponsor a child’s education for 2400 Rs per year.

http://www.lokkalyansamiti.in/funds-raising.html

Please do keep atleast 30% of your funds in FDs at this stage, especially if major part of your material wealth is in stocks. To put things in perspective, if you structure your portfolio with risk averse attitude, you will certainly win in long term, its certain. If you keep all money in stocks, especially if its all liquid money you have, then you will eventually lose. Every 7-10 years a major bear market grips, and if you are 100% invested you’d go down with it, which is fine as long as you can keep adding to positions. If you can’t, then you’ve lost a beautiful opportunity.

To give numbers to the above idea, if you are 100% invested and compound @ 20% for first 9 years and in the 10th year you get negative 15% returns, you lose out to risk averse investor that keeps compounding @ 16% throughout the 10 year cycle.

I am cautiously hopeful of killing sensex next year with out performance, I believe our idea pool is ready to rumble. All credit to One who does not talk about Himself. I actually cannot help but post a poem that is so awesome in the next post.

Kind regards

Amit

Written by amitdipsite

September 15, 2010 at 10:22 pm

Posted in Uncategorized

6 Responses

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  1. Hi Amit..I cam across your blog last month and since then i have been following you.I should really appreciate your hard work.All the best and keep up your good work.And once again thanks for sharing your Knowledge with us.

    Just wanted to ask you..whats your view at current valution of sensex.Do you see a big fall coming in by next year start?Cause i came across an article which said as per the consumer confidence index the markets may reach 28,000 in may 2011 and the best time to get out of market is in the start of Jan 2011.what do you have to say?

    brand update

    November 8, 2010 at 7:24 am

  2. Dear brand update,

    My sense is to ignore the index. But nobody can predict whether we will go to 40,000 in next 3 years or whether sensex will go back to 14,000 next year. Its become historically expensive so makes sense to keep 30%+ in FDs.

    Sensex was flat from 1997 to 2003 @ 3000 level. Infact from 1992 – 2003 it was down from 4500 to 3000.

    In short term your stocks can fall by 50%, so one should be buying only stocks one will add if they fall to half.

    Kind regards

    Amit

    Multibagger

    November 8, 2010 at 7:20 pm

  3. To further add what I missed in my previous comment,

    – Focus should be on companies that are expected to grown over 25% for forseeable future that are not very expensive.

    Between 1997 to 2003 when sensex failed to move a single point, many company grew handsomely.

    Thanks

    Multibagger

    November 8, 2010 at 8:27 pm

  4. Hi Amit,

    Stumbled upon your blog today and love what you are doing. Keep up the good work. I will definitely be a regular reader from now on, which I am sure about. So to begin with I really liked the cause you mentioned. And liked Lok Kalyan Samiti. So have gone ahead and made a small contribution to them as an advance for your contributions to the whole small investor community.

    Thanks and regards,
    Manish.

    ManishBG

    November 11, 2010 at 7:52 pm

  5. Thanks Manish,

    Hope you make 1000 times more money that you donated, You should buy Cravatex, Relaxo and Photoquip in small quantities every month. If I were an insurance company, I am willing to underwrite/insure to your Cravatex investment @ 300 per share for Rs 1 premium per share. i.e. Should Cravatex go below 300 Rs give me all your purchased quantity at this (300 Rs) price. While I am not an insurance company, we can still do something about it as private parties, Email me if you want the deal. I have no money to invest in Cravatex but I'd love to insure you.

    Kind Regards

    Amit

    Multibagger

    November 11, 2010 at 8:24 pm

  6. Hi Amit,

    As rightly mentioned on your blog, I would invest in a stock only if I am willing to buy more, if it did go down by 50%, looking at it as a good opportunity rather than cursing my decision😉 So will surely not take your offer and waste Rs.1 as a premium. I will definitely look into the other stocks you just mentioned.

    Keep up the good work.

    Regards,
    Manish.

    ManishBG

    November 12, 2010 at 7:35 am


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