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Example 1 of common sense investing
Granules
If I remember it right, I picked it around Dec 2018 at a price of around 80-90.
Here is a thread of how I rode the journey since than.....
Granules
If I remember it right, I picked it around Dec 2018 at a price of around 80-90.
Here is a thread of how I rode the journey since than.....
Pointers
~ There was visible value in terms of stock price
~ Even though I don& #39;t have deep knowledge to understand the pharma as a subject; however I could see that Business was into few must consumption medicines, hence business potential was predictable.
~ There was visible value in terms of stock price
~ Even though I don& #39;t have deep knowledge to understand the pharma as a subject; however I could see that Business was into few must consumption medicines, hence business potential was predictable.
~ Company was consistently showing growth in terms of topline since many years
~ Could identify triggers that may come up potentially in future based on basic level of research thru company announcements, past quarterly statements, concalls, thru understanding company website.
~ Could identify triggers that may come up potentially in future based on basic level of research thru company announcements, past quarterly statements, concalls, thru understanding company website.
~ Since I could see value, business potential and future triggers in terms of business growth...I took a reasonable starting position
~ I continued to review every quarterly earnings and wherever the numbers added to my conviction, I increased my allocation almost every time.
~ I continued to review every quarterly earnings and wherever the numbers added to my conviction, I increased my allocation almost every time.
~ When I first bought, it was around 8-9 pe. Since than, earnings grew, fundamentals turned stronger and hence the valuations multiple grew.
~ I continued to add until I could see that the valuations multiple can appreciate by atleast 50% from that time.
~ I continued to add until I could see that the valuations multiple can appreciate by atleast 50% from that time.
~ In between, there were multiple noises like hyderabad companies are not good, huge debt, big pledging, etc., etc.
~ As an investor, we cannot make a perception based on certain bad past, we need to look at present & try to foresee how future can take shape.
~ As an investor, we cannot make a perception based on certain bad past, we need to look at present & try to foresee how future can take shape.
~ As of today, even though there are new speculations that KKR may buy a stake; however value is not much visible at around 400 levels.
So I have reduced my allocation significantly and have shuffled into better potential opportunities.
So I have reduced my allocation significantly and have shuffled into better potential opportunities.
Like Granules, there are many examples like Bharat Rasayan, IOLCP, Avanti Feeds, Astec Life, etc......where I rode the journey in almost similar way.
Mentioning these names doesn& #39;t mean I am holding all these names as of today with same conviction as of earlier.
Mentioning these names doesn& #39;t mean I am holding all these names as of today with same conviction as of earlier.
You can read this thread thru judgemental & contrarian thought process that where I went wrong or where I could have gone wrong.
Or
You can read this thread thru learning mindset that how we can simply ride a potential wealth creation idea.
Or
You can read this thread thru learning mindset that how we can simply ride a potential wealth creation idea.
