Strategy

Techniques used

  • My first and foremost approach is to delve into the fundamentals of the company.
  • This would include a detailed examination of things like the financial health, risks, management, earnings and potential for growth.
  • The picks would cover multiple sectors like technology, health, retail, energy to name a few.
  • Once a stock passes my litmus test on Fundamentals, it will fall into my monitor list where I would regularly follow the stock.
  • I would then use some technical analysis to determine the few best entry points for the stocks.
  • As soon as those entry points are hit, the stock would make it into the Recommendations list and you will receive an email.
 

Recommended Use

  • When a new recommendation is made, you could:
    • Open a position around the recommended price immediately if you have money to invest
    • Take note of the stock, monitor it and buy it when you are comfortable
  • You do not necessarily have to buy all the recommendations.
  • You are encouraged to diversify in multiple different recommendations. Do not over invest on any single stock.
  • You are encouraged to develop interest in the recommended stocks, follow developments related to that company etc.
  • The picks are better suited for investing, rather than trading. Stocks may fluctuate in either directions in short term, but don't let that scare you!
  • It is okay to buy the stock at a price little above the recommended price as well. Our aim is to make solid gains over an extended period so exact cost basis is not needed!
  • You may choose to report me your purchase and sale if you want me to monitor your portfolio
  • Now for the toughest part, When to Sell? It deserves a separate section!

When to Sell?

  • I will make a formal Sell recommendation when:
    • The price has gone beyond its justified valuation
    • We have made a significant gain
    • The pick is not doing as well as I had expected
    • The fundamentals of the company have deteriorated
    • The growth potential has diminished for internal or external reasons
  • However, you are encouraged to periodically exit from some positions to lock gains and reinvest in other recommendations.
  • Most picks are with an intent to bet on long term growth in solid businesses and hence we may Hold some of them for years.