Let me give you a short summary on how I filtered few stocks:
1. In stock filtration lesson, @soicfinance taught me a wonderful way of regularly tracking holdings of best Indian investors.
2. I went through the holdings of all the investors I admire. (1/n)
1. In stock filtration lesson, @soicfinance taught me a wonderful way of regularly tracking holdings of best Indian investors.
2. I went through the holdings of all the investors I admire. (1/n)
I checked where they have made the fresh entry, which ones they have added more, and which ones they have reduced. Some of the investors I hugely admire are Mukul Agrawal, Ashish Dhawan, Samit Vartak, etc.
3. There are few fund houses which I love to track. (2/n)
3. There are few fund houses which I love to track. (2/n)
Few notable examples: Abakkus, Solidarity, 2point2 Capital, Bowhead, Counter Cyclical, etc.
4. Removed few stocks based on if stock is overly priced, poor management quality, whether industry is facing headwinds in short term, result comparison QoQ/YoY, margin erosion, etc (3/n)
4. Removed few stocks based on if stock is overly priced, poor management quality, whether industry is facing headwinds in short term, result comparison QoQ/YoY, margin erosion, etc (3/n)
5. How to evaluate Management quality - Most of the times I end up using either "About" section on company website or the other best option is to check Linkedin.
6. I was left with handful of stocks for which I applied these must have criteria: (4/n)
6. I was left with handful of stocks for which I applied these must have criteria: (4/n)
a) Whether the stock is in Stage 1 or Stage 2 technically. b) Growth triggers - concalls, annual reports, order book, industry tailwinds, management guidance, etc.
7. The stocks which I zeroed in are Capacite Infraprojects Limited, Uniparts, Equitas Small Finance Bank. (5/n)
7. The stocks which I zeroed in are Capacite Infraprojects Limited, Uniparts, Equitas Small Finance Bank. (5/n)
I ended up buying Capacite and increased my allocation in Equitas.
8. My teacher @ishmohit1 may disapprove my first choice 😀 but guys the larger purpose of this post is to give you an idea on how one can pick stocks. (6/n)
8. My teacher @ishmohit1 may disapprove my first choice 😀 but guys the larger purpose of this post is to give you an idea on how one can pick stocks. (6/n)
9. Another stock which I ended up buying few months back was Permanent Magnets. The filtration criteria was different. We will touch base on that in Part 2 (If there will be any after my first shoddy attempt) 😀
Disclaimer: No stock recos. An educational post from novice. (n/n)
Disclaimer: No stock recos. An educational post from novice. (n/n)
PS: Go through this brilliant video to understand more:
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