Views on Life & on Equity Investing

Wonder, Wealth & Abundance

Buy after 20x in a year

with 20 comments

No that’s not what I made but that is one such stock that I invested in.

Its generally hard to invest in a stock that has gone up more than you sold it for.

Say, you bought something at 100 and sold at 150, and if its trading at 300 a year later that bias would be to look for something else, which is irrational, illogical and counter intuitive. What matters is the price today in relation to the growth / discounted cash flows / dividend yield etc tomorrow, not that it went up 10 times or dropped 10 times.

We choose to buy the stocks we own daily, as if we bought them every morning.

The two qualities required in a good investor is lots of arrogance/chutzpah, coz you are saying to the world that I alone know more than you put together, hence I will do well, and humility to admit mistake and learn quickly when proven wrong, quit quickly with minor losses.

In 2009 it so happened that I was a newbie in stocks and was happy to buy Symphony at 20 INR after it had gone up 10X in the previous 12 months, whereas I read another investor on the equity desk forum write that he saw Symphony 10X cheaper in 2007, hence he is unable to buy today. I repeated this with Relaxo Footwear again in 2010 after it was 10X up.

I think last week I broke my previous record and bought for the first time a stock that has gone up 20X in the previous year, after it went up 22 fold I entered at  approximately 42 EURO. The confidence came from the fact that content producing companies in the age of free Youtube access are making a killing. I learnt this recently while playing videos on Youtube for my 2 year old. You know I have abdicated my responsibility of teaching A-Z , 1-20 and colours to Youtube, bad parent.

Killer niche business models

I noted that a couple of broke, not-very-educated, certainly not close to Ivy (infact they would have to be non Ivy) lower income group people became multi millionaires by publishing 1 Youtube video of 10-20 minutes duration once a week. In fact, I explained this to my nephew who is thinking of writing cutting edge video games for Xbox or PS4 that here are the so to speak neanderthals compared to what you are planning, working on passe animation after 3 months online course on how to make a video / animation for children, earning 10s of millions of USD per annum which is at least 100s of times easier to make but it targets a niche need.

Eg 1: ChuchuTV 14 million subscribers https://www.youtube.com/user/TheChuChuTV

Eg 2: Blippi 1 Million subscribers https://www.youtube.com/user/BlippiVideos

Eg 3: WoW English TV https://www.youtube.com/results?search_query=wow+english+tv

You might think looking at those videos as boring, but not the toddlers or kids, make no mistake, they are hooked, and hence the Ad dollars.

The company that I invested in is called Xilam Animation France. The stock is up from 1.8 Euro to 46 Euro in a matter of 16 months. I think it serves a niche.

http://www.xilam.com/?lang=en

XIL Animation

Disclosure: Invested. Views are personal notions and do not represent any organisation or company. Investment in stock market can (and many a times do) result in loss of principal capital.

http://www.elevendimension-funds.com

Written by amitdipsite

January 16, 2018 at 5:01 am

Posted in Uncategorized

20 Responses

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  1. Amit Sahab, Salam and Greetings
    I too saw Symphony at that level with pe in single digit but as I had already cut holes in my pocket with similar fundamental companies – i did not touch it. Symphony has created millionaires out of average earning people and yes – made history. Learning and finding a true gem, is perhaps a difficult exercise – or is it something else. Oblige us, tell us of a company of like Xilam Animation trading in indian rupees – if not explicitly – hint it at least. Wonder, Wealth and Abundance could trickle a gift to its blog followers. Thank you, best regards and Dua. Shaukat Ali

    shaukat ali

    January 16, 2018 at 7:17 am

    • Sir,

      To be honest, I am not finding many opportunities in India. I like to invest 2-3% in 30-40 companies now, instead of concentrating. Even hold 1% or less in some to increase if there is clarify in the future like Sintex Plastics, Dhanalaxmi Roto Spinners. SMEs are expensive, so buy seldom. I am right only 50% of the times so people may bet 15% on a stock on which I have bet 1% resulting in loss to them. SMEs that I invested in India were AKME Star Housing, MRSS and Secur Credentials. All the best

      amitdipsite

      January 16, 2018 at 9:07 pm

  2. Silly Monk Entertainment Ltd to be listed on NSE SME Emerge tomorrow is one such company which is into content publishing and is a Multi channel Network company which did a billion minute viewership in the month of October alone. Potential multibagger. http://www.exchange4media.com/industry-briefing/sillymonks-youtube-mcn-garners-1-billion-viewing-minutes-in-october_87088.html

    Manoj Agarwal

    January 17, 2018 at 3:05 am

  3. The problem with SME segment is that the lot size is very large and therefore acts as a deterrent for small investors to make ‘first time entry’ into a new stock and that too in the SME segment which is slightly uncharted.
    However, Mr. Amit can only reply and guide us on the matter after seeing and analysing viewership and traffic data of Silly Monk.

    kamalgarg1958

    January 17, 2018 at 5:43 am

  4. Silly Monks certainly appears as an interesting co in a fast growing sector. Promoter quality too seems good.

    How different & similar is the co Xilam mentioned by you to Silly Monks? How is the opp size & USP for Silly Monks?

    Vivek Gautam

    January 17, 2018 at 6:41 pm

    • Silly Monks content is not that exclusive or addictive and has more competition and alternatives

      amitdipsite

      January 17, 2018 at 6:45 pm

      • Ok. But otherwise whats your take on Silly Monks from an investment perspective ? how is the sector its operating in?

        Vivek Gautam

        January 18, 2018 at 5:13 am

        • Their content doesn’t look good. Good for listing gains. Something not right coz they are cash flow positive so had no need to list.

          amitdipsite

          January 18, 2018 at 6:25 am

  5. I absolutely would like to second you on the ChuChu TV analogy. Have a kid at home who would starve but not eat till he is shown their videos. Seems like a good business model. By the way, is there a comparable listed entity in India?

    Mithun

    January 18, 2018 at 5:19 am

  6. […] LONG XIL ANIMATION FRANCE – Its a 50/50 company (growth/pe). Good prospects and decent quality. https://lifeandequities.wordpress.com/2018/01/16/buy-after-20x-in-a-year/ […]


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