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******What not to buy *******
Don’t buy psu stocks - Govt does charity, not for profits
Don’t buy low PE stocks - Market give low PE for some reason (cyclical, CG, low growth, poor mgmt, unscalable, sector headwinds, etc.)
(1/n)
#Lessons #StockMarkets
Don’t buy psu stocks - Govt does charity, not for profits
Don’t buy low PE stocks - Market give low PE for some reason (cyclical, CG, low growth, poor mgmt, unscalable, sector headwinds, etc.)
(1/n)
#Lessons #StockMarkets
Don’t buy infra stocks - market leader L&T gave negligible returns in last decade, low margins, sector headwinds
Don’t buy commodities stocks - it is for traders, cyclical, hard to buy at bottom and sell at top
(2/n)
#sensex #nifty
Don’t buy commodities stocks - it is for traders, cyclical, hard to buy at bottom and sell at top
(2/n)
#sensex #nifty
Don’t buy high dividend yields stocks - if the company is paying all profits as cash, it implies that they don’t want to invest in company due to low growth
Don’t buy stocks where promoter holding is quite less - it should be minimum 50 to 60% if not 75%
#nifty #stocks
Don’t buy stocks where promoter holding is quite less - it should be minimum 50 to 60% if not 75%
#nifty #stocks
Don’t buy companies from rouge group/promoters irrespective of sector/business they are in
Bad ones - Ambani, Adani, Biyani
Good ones - Hdfc, Bajaj, Larsen
Bad ones - Ambani, Adani, Biyani
Good ones - Hdfc, Bajaj, Larsen
Don’t buy companies who frequently announces corporate action like split, bonus, rights etc. These actions are taken to lure investors and don’t help in growing business.
Don’t buy small price ticket companies also called penny stocks.
Don’t buy the company if the company is not in the top 2-3 leaders of the sector. The leader must be growing faster then the avg sector growth. #nifty50 #WhatNotToBuy
Don’t buy the company who is constantly touching upper or lower circuits. These are generally operated by traders and one may loose significantly when the tide turns
Don’t buy companies with huge debt (banking and nbfc is exception)
The companies with high debt face issues when the economy is not well, rising interest rates, sector headwinds etc.
Always prefer companies with no debt and optimum level of cash in books.
#Debt #Lessons
The companies with high debt face issues when the economy is not well, rising interest rates, sector headwinds etc.
Always prefer companies with no debt and optimum level of cash in books.
#Debt #Lessons
Don’t buy stocks on the basis of sms tips, friends tips, brokers tips, whatsapp forwards, TV channel recommendation, newsletters, tweets,etc.
One must study the company before investing hard earned money. The recommendations from above channels is mostly biased.
#lessonslearnt
One must study the company before investing hard earned money. The recommendations from above channels is mostly biased.
#lessonslearnt
Don’t buy companies where key personnel like auditors, CxOs, company secretary leave or asked to leave without reason. That may be business as usual but keep an eye 
on as some fraud or any negative news may unfold shortly
on as some fraud or any negative news may unfold shortly
Don’t buy companies with low ROE(Return on equity) , This metric represents companies efficiency in handling shareholders contribution and management ability to generate income and growth from equity financing
Ideally, A company should have minimum ROE as 20%
#StockMarket
Ideally, A company should have minimum ROE as 20%
#StockMarket
Don’t buy companies that are near 52 week low. It is better to see them bounce back from lows and then buy otherwise chances are they will fall further.
Again there can be exceptions, and 52 week low stock can give #multibagger returns with change in mgmt and business scenario
Again there can be exceptions, and 52 week low stock can give #multibagger returns with change in mgmt and business scenario
Don’t buy when the stock price fall suddenly(20-30%) without any news in normal market. This happens when some fraud in the books or promotors sold stock in open market.
Kwality dairy fell 20% suddenly and people said that this is due to some big investors sold, rest is history.
Kwality dairy fell 20% suddenly and people said that this is due to some big investors sold, rest is history.
X stock will become next HDFC Bank
Y stock will become next Page Industries
Z stock will become next L&T
Never buy so called X, Y, Z stock, it rarely happens that such #stocks outpace sector leader.
Not easy to be #sector leader
Any exceptions you can share ?
Y stock will become next Page Industries
Z stock will become next L&T
Never buy so called X, Y, Z stock, it rarely happens that such #stocks outpace sector leader.
Not easy to be #sector leader
Any exceptions you can share ?
Don’t buy stocks where too much research is required or you need to find lot of evidence to convince yourself for investing.
Investable stocks don’t let you ask many questions about them.
If you don’t get peace of mind by investing, please avoid such stocks
#investing #stocks
Investable stocks don’t let you ask many questions about them.
If you don’t get peace of mind by investing, please avoid such stocks
#investing #stocks
Don’t buy so called turnaround stories that are floated to trap small investors in the hope of 2x, 5x or 10x return in short time frame of 3-6 months
The success rate is only 2-5% and in most cases the investor is not able to exit timely and the stock is back to original price.
The success rate is only 2-5% and in most cases the investor is not able to exit timely and the stock is back to original price.
Don’t buy companies in regulated sectors like fertilisers, oil, sugar, steel, cement as these companies don’t have pricing power and run on thin margins. The govt. keep imposing import/export caps, duties, sale price subject to demand/supply and lead to profit deterioration.
