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INVESTMENT JOURNEY

VP -2019, GOA

NARENDRA
Beginning

 Concept of saving/finance
 Initially started as FD&RD
 Mutual funds for 2-3 years
 Slowly started reading about equities
Initial steps

 First stock: Vakrangee


 Next : DHFL
 Reading Economic Times: value stock-NMDC
 Investing based on PE ratio
 Misunderstanding of great quotes
 Experience with Kaveri seeds and SKM eggs
 2015: came across VP forum: didn't believe it for few
months.
 Teaching at home!!
 Finolex /Sintex- realised power of BRAND
 Clue to look at finance companies
 Bajaj finance
 Incident which made me to buy
 local scuttlebutt
2016-17
 Realised that I have to look forward than what happened
with company in the past (August 2016)
 Shiva texyarn story
 Started giving more time from later half of 2016
 Active participation on VP/readings
 Following VP seniors/cloning portfolio/following posts
Scuttlebutt!!
 VST tillers- farmers feedback
 GMM pfaudler- local service guy
 Wonderla- feedback from Chaiwala
 Distributors and customers- Bajaj finance, STY
 Plant visits- Ador/Balaji amines..etc
 Meeting with promoters and business heads
concalls
 Many companies in same sector
 Gives an idea about industry trends: sugar, pharma
companies.
 Helps in selling decision: who is better than management
in signalling irrespective of valuation
 No of analyst participating/duration of con-
call/confrontation with management.
 Saves time for me!!
Buying decisions

 Growth oriented
 Not consider PE
 Importance to management quality
 Limited players –VST tillers(aware of limited size also)
 Edge in the process of manufacturing- Fairchem.
 Sector tailwinds, Govt policy changes
SELLING DECISION:

 Govt regulations: Hospitals


 Misallocation of capital-
 kovai medicals -medical college.
 Balaji amines-hotel business
 Con-calls- look for subtle clues
 Change in trends: reasonable easy for me to take decision
by looking around
 Data consumption helped in exiting ENIL
 Manpower supply to Auto industry
 What I/family members buying
Key learning's
 Clear identification of business driver
 Not to get overexcited by growth in new division
 VST ltd- tillers v/s tractor division
 Shemaroo –traditional v/s new media
 Avoid company with unrelated diworsification
 Ador fontech- 3D future technology
 cyclicals: earnings growth not to reflect on stock
price(?depend on market sentiment)
 Paper companies
 Sugar companies
 Not to overpay!! Paid enough tuition fee
Key learnings
 Repeated mistake with same stock
 Averaging down: gone horribly wrong!!!
 Started looking for previous support levels.
 Averaging UP – most important for me
 Asses quarterly results
 Industry continues to have tailwinds
 Data/information to add further
BOOKS
 What I have read
 FIVE RULES OF PAT DORSEY
 RICH DAD POOR DAD
 ONE UP ON WALL STREET
 Tried reading other books
FUTURE
 Buy at appropriate price
 VALUE of business
 Sit on cash
 Better understanding of financial statements/ratio
 Am I making return from my “own” picks
 Find another Bajaj finance!!
 Managing Health/Family/Profession