Monday, 24 August 2015

Ghosts of 2008

Market had a landmark crash today and the 2008 ghosts are back to haunt.

I have been flooded with queries like is it going to be another 2008 coming up? Honestly i feel the answer is NO.

When market rallies the market voices instantly turn bullish and when it crashes like it crashed today everyone panics and starts the 2008 crash talks while some even claim to have inside news about it.

I think investors and traders should now show maturity and stop believing everytime that the best or the worst is going to happen.

At this stage, Weak hearted should go for an holiday and the rest can do some shopping.

Note: Lot of discussed companies have declared their results but i haven't updated about them as i am traveling, Apologies for the same. Look forward to be very regular from September 1st week and hopefully a new stock is coming up too!

Saturday, 22 August 2015

10 money lessons I learned from Warren Buffett

Everyone obsesses over Buffett's track record as the world's greatest investor. 
What's even more remarkable about his achievements is that being a squillionaire hasn't changed him much.
He's the perfect role model for living a modest lifestyle while doing what you love. It's fair to say I'm a fanboy.
Here are 10 money lessons I've learned from the Oracle of Omaha:
Start young
The miracle of compounding interest works best with time on your side, and Buffett was a born hustler. At six years old, he bought sixpacks of Coke for 25c and onsold each bottle for 5c.
The savings from various schemes and a paper run led him to buy his first shares at the tender age of 11.
Never lose money
The other benefit of starting young is that mistakes are best made early on, when there's not much at stake.
Buffett's first rule of investing is don't lose money. His second rule?
"Don't forget rule number one."
It might sound obvious, but a lot of people don't grasp this.
If you lose 50 per cent of your cash on a bum investment, your next one needs to double just to break even.
Avoid 'lifestyle inflation'
Warren Buffett's net worth is about $109 billion in kiwi dollars. 
But even as his wealth has skyrocketed, his habits have remained the same.
For decades, he has drawn the same salary of just US$100,000.
He still lives in the modest house in Omaha, Nebraska that he bought back in 1958.
His favourite meal? A McDonald's hamburger and coke.
Avoid accumulating stuff
Buffett has deliberately avoided being burdened with the usual toys associated with the billionaires' club. Why? He's acutely aware of the maintenance expenses, depreciation and holding costs.
The one exception - a private jet - he named "The Indefensible" for very good reason.
Never pay the sticker price
Buffett is known for 'value' investing. He looks for great companies at bargain prices.
Even if you're not an investor, the same concept applies to other purchases. With a bit of haggling and shopping around, there's no need to pay the full sticker price for the likes of cars, electronic goods, or even your mortgage.
Avoid the debt trap
When asked the most important thing young people should be doing about money, Buffett's advice was to "stay away from credit cards."
Look longterm
Here's another famous Buffett aphorism:
"The stock market is a device for transferring money from the impatient to the patient."
Most people either get greedy or panic when they see share prices jumping around. They become their own worst enemy.
Buffett buys companies he wants to own 50 years from now, and ignores the noise of the market.
Be boring
There's no such thing as a free lunch. Hyped-up get-rich-quick schemes are doomed to fail.
Buffett has warned against investing in precious metals or currency trading.
He also famously steered clear of both the dotcom boom and bust, and the complex derivative products which caused the global financial crisis.
Invest in yourself
"Invest in as much of yourself as you can, you are your own biggest asset by far," says Buffett.
A cruel twist of fate can strip you of your money or your job. But no-one can take away the talent and skills you acquire.
Give back
We can all make a difference. Buffett has given away billions, and says when he kicks the bucket, 99 per cent is going to charity. Way to combat those old white dude stereotypes.

Friday, 7 August 2015


Pincon Spirit Ltd posted on the blog at 115.50 on 16th May 2015, Currently trading around 169.
Company has announced June 2015 quarter numbers as follows.
As seen above: The numbers are great. If they give stable and similar results minus any growth for all next three quarters the annual revenue will stand at 920 crores and EPS will be 22.64.

The stock has recently rallied from around 99 to trade at around 160 plus. The company has been giving advertisements on CNBC and a lot of other english channels for its brand Pincon XXX drink and also Pincon Soda. Ranbir Kapoor's cousin brother Armaan Jain is the face of the campaign.

Pincon is currently trading under 10 p/e against its full year earnings for 2015. However, All other spirit companies are trading at much higher valuations.

I think the rally will continue in Pincon and so its a hold for me.

NGL Fine-Chem Ltd. posted on the blog at 71 on 20th November 2014, Currently trading around 225.
 Company has announced June 2015 quarter numbers as follows.
As seen above: The numbers are stable. If they continue to be stable the annual eps for FY16 would be around 18.44 and 20 times valuation will have the stock trading around 370.

As already given update on 6th July (Post) We had booked partial profits already around 200 and now holding only 50% or free shares. So this is now a good stock to be kept in your portfolio for long-term for further multiplication.

Talwalkars posted on the blog at 310 on 20th June 2015, Currently trading around 300.
 Company has announced June 2015 quarter numbers as follows.

As seen above: The numbers are stable. As this is almost a seasonal type of business March is the good quarter on back of New Year Resolutions and September(next) quarter is their best on back of the annual august offer. This time the company is going to go very aggressive in their august offer and are targeting large number of subscription.

As TALWALKARS is the only listed company in its sector and also the sector leader with a good brand-recall i don't think it will hover for long around 19 p/e which it is trading around right now. All brand businesses trade at a premium and being a sector-leader and a lone listed player is another re-rating factor.

I expect multiplication in Talwalkars, In their quarterly update too company has highlighted that it is the only listed player and the sector leader to grab investor eyeballs. Upcoming fitness chain partnership with David Lloyd is also going to be exciting. Strong Buy and Hold on Talwalkars for me.

   Skm Egg Products Export (India) Ltd posted on the blog at 47.90 on 15th October 2014.
Currently trading around 140.
Company has announced quarterly results as follows.

As seen above: The quarterly results are decent and at par with market expectations. Going forward new export markets will open up new avenues of growth for SKM which happened in the case of Avanti Feeds too, I am hopeful that soon it will successfully tap new markets and deliver robust performance.

Good stock to hold in the portfolio.

Due to travelling and other commitments not able to reply to all queries and also not able to update about quarterly result for all scrips instantly. Sorry for the delay and keep reading! :)