Raamdeo Agarwal came from a middle-class family but his stock-picking abilities made his net-worth soar to ₹6,840 Crores
MOFSL (his investment firm) recently released a 27th wealth creation report on how they select stocks. [A thread...] 🧵👇
MOFSL (his investment firm) recently released a 27th wealth creation report on how they select stocks. [A thread...] 🧵👇
[1] Consistents & Volatiles
To study companies, MOFSL's 27th Annual Wealth Creation categorized companies into two:
A. Consistents and
B. Volatiles
Consistents need to pass 3 tests based on their Profits After Tax (PAT). What are these three tests?🤔Read on👇
To study companies, MOFSL's 27th Annual Wealth Creation categorized companies into two:
A. Consistents and
B. Volatiles
Consistents need to pass 3 tests based on their Profits After Tax (PAT). What are these three tests?🤔Read on👇
Consistent companies are those that satisfy all of these:
A. PAT has not fallen by >10% three times YoY in last 15 years. If history is of 10 yrs, then not more than twice;
B. PAT has never fallen by 50%+; and
C. Last yr PAT > first yr PAT
All other companies are Volatiles!
A. PAT has not fallen by >10% three times YoY in last 15 years. If history is of 10 yrs, then not more than twice;
B. PAT has never fallen by 50%+; and
C. Last yr PAT > first yr PAT
All other companies are Volatiles!
[2] A few examples
You should look at these practical examples.
Company B is "Consistent" even though its PAT has fallen 4 times because PAT hasn't fallen 10%+ for >3 times
In the thread ahead, let's look at which industries are Consistents & which are Volatiles👇
You should look at these practical examples.
Company B is "Consistent" even though its PAT has fallen 4 times because PAT hasn't fallen 10%+ for >3 times
In the thread ahead, let's look at which industries are Consistents & which are Volatiles👇
![[2] A few examples
You should look at these practical examples.
Company B is "Consistent" even tho...](https://pbs.twimg.com/media/F3t5velW4AE5UKu.jpg)
[3] Reasons behind Consistency / Volatility
A. Industry factors
🔸Nature of demand
🔸Competitive landscape
🔸Value inflow/outflow
🔸Govt regulation
B. Company-specific factors
🔸Company strategy & execution
🔸Industry leadership
🔸Pricing power
🔸Capital (mis)allocation
A. Industry factors
🔸Nature of demand
🔸Competitive landscape
🔸Value inflow/outflow
🔸Govt regulation
B. Company-specific factors
🔸Company strategy & execution
🔸Industry leadership
🔸Pricing power
🔸Capital (mis)allocation
Have discussed all these factors in depth in my video with Groww - yt.openinapp.co
Based on these studies which all industries are consistents and which are volatiles? 🤔
By what margin do the consistent companies beat Nifty50? Read on👇
Based on these studies which all industries are consistents and which are volatiles? 🤔
By what margin do the consistent companies beat Nifty50? Read on👇
[4] Consistent and Volatile Industries
Based on the above analysis, it was found that industries like Banks (private), Chemicals, FMCG, IT etc. were Consistents
While Automobile, Construction, Hospitality etc. were Volatiles
Here's the complete list👇
Based on the above analysis, it was found that industries like Banks (private), Chemicals, FMCG, IT etc. were Consistents
While Automobile, Construction, Hospitality etc. were Volatiles
Here's the complete list👇
![[4] Consistent and Volatile Industries
Based on the above analysis, it was found that industries li...](https://pbs.twimg.com/media/F3t5w4kXMAEJPfc.jpg)
[5] Performance vs Nifty50
87% Consistent companies beat the index while only 33% Volatile cos beat the index
Avg CAGR b/w 2007-12 of:
🔸Consistents: 17%
🔸Volatiles: 1%
🔸Nifty50: 9%
87% Consistent companies beat the index while only 33% Volatile cos beat the index
Avg CAGR b/w 2007-12 of:
🔸Consistents: 17%
🔸Volatiles: 1%
🔸Nifty50: 9%
![[5] Performance vs Nifty50
87% Consistent companies beat the index while only 33% Volatile cos beat...](https://pbs.twimg.com/media/F3t5xxNW8AMjGkC.jpg)
Much more in-depth discussion in this video.
Research for weeks to bring this to you - yt.openinapp.co
Do share your feedback after watching the video. Much appreciated
Research for weeks to bring this to you - yt.openinapp.co
Do share your feedback after watching the video. Much appreciated
If you like the content:
Follow me (@bahlkanan) for more on Personal Finance, Investing, and Startups
Retweet the first tweet to spread maximum awareness👇
Follow me (@bahlkanan) for more on Personal Finance, Investing, and Startups
Retweet the first tweet to spread maximum awareness👇
TL; DR
[1] Consistents & Volatiles
[2] A few examples
[3] Reasons behind Consistency / Volatility
[4] Consistent and Volatile Industries
[5] Performance vs Nifty50
[1] Consistents & Volatiles
[2] A few examples
[3] Reasons behind Consistency / Volatility
[4] Consistent and Volatile Industries
[5] Performance vs Nifty50
Disclaimer: This thread has been shared from an educational viewpoint and should not be construed as investment advice or any kind of buy/sell/hold recommendation.
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