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[theupdatesblog]

My Main Strategy

- Groww Portfolio

- Zerodha Portfolio

- Paytm Portfolio

### Groww Portfolio

Put stocks in here for tracking the worthiness of the stocks over the long term.

- You like it well

- Earning growth is consistent

- Huge earnings potential

- Small enough for hyper growth

- Unique business

### Zerodha Portfolio

Stocks which are out of favour from the markets.

Trading at historical lowest PE, but has good business growth.

- Big enough

- Unique Business

- Lowest PE

- Consistent Earnings Growth

### Paytm Portfolio

Micro cap companies with good potential.

- Unique Business

- Micro Cap

- Huge hyper growth potential.

## Sectoral KB

### NBFC

High CAR is desirable, Bajaj Finance had high CAR at critical juncture (GFC, Covid).

Customer breakup - high share of salaried or consistent income, high auto loans, high consumer durable.

Cost of fund is higher as compared to banks, hence need to lend in segments where interest margin is higher.

Turn around time for money is quite less, as raw material is money and final product is money. You the return from reinvested profits quickly.

RBI has made NPA norms stricter in recent years.

| Institution | Cost of Funds | NIM | Remarks |

| --- | --- | --- | --- |

| NBFC | around 7% | |Comparable to FD rates of the time |

| Banks | 3.5% | 4% |Comparable to repo rate of the time |

Banks don't unsecured loans, whereas for NBFCs they are ideal customers.

#### [[Bajaj Finance Ltd]]

For banks, ideal customer are

- Mortgages

- Auto Loans

- Personal Loans

### Banks

Book Value compounding is important than PE.

High Return on Equity is important too.

Good Management is important, since accounting in banking very arbitrary, one can show same npa in a very attractive way.

Counter Cyclical Lending

High CASA

## Screening Tools and Resources

- [[Screener.in]]

- [[Tickertape]]

- [[Tijori]]

- [[Moneycontrol]] [[Research]]

- Value picker Forum

- India's macro data

- Energy demand

- Oil Import demand

- (link::https://www.indiainvestments.wiki/)

## Investing Strategies

- Intraday trading

- Positional Trading

- HODL

- Securities Lending and Borrowing

- straddle strategy.

- short volatility.

- sell straddle

## Checklist for Shortlisting

(link::https://www.indiainvestments.wiki/stocks/due-diligence-checklist)

==Replace the below with above link==

- Outperform the NIfty 50

- Good Revenue/Sales Growth

- [[Company Fundamental's Glossary#ROCE|ROCE]] >15 | High ROCE

- Profit/Net-Income Growth > 10

- Profit Margin Growth

- Read about the company & sector

- Check the Chart of PE & EPS

- Debt levels

- Promotor Holding Increase

- Product mix is good

- Unique business model.

- Cashflow

- Growth Guidance.

## Unique Businesses

- Titan

- Mapmyindia

- **Elasticrun**, it seems, has managed to crack an elusive code—hyper-scale without upsetting incumbents. Which, in this case, are distributors of FMCG products.

- **Atomionics** - they into using quantum sensors to create the map of the earths crust, so that mining can be made green and more exact process.

- Infoedge

- EaseMyTrip

## Shorthands

### Rule of 72

Divide 72 with rate of return, the number you get is the no of year it takes to double your investment.

## Things that are everyone needs

1. Paints

2. Wires & Cables

3. Medicines

4. FMCG

5. Fashion

6. Fast Food

7. Laptops

8. Batteries

1. Electric Vehicles

2. Mobile

3. Electronics

## Advices

- Lowest PB Ratio

- Put a Keywords Alert on Google or other such sites to know when that particular stock is getting popular aka euphoria

- Boring is Beautiful

- Sit on Cash, if not finding ideas

- Be a Dumpster Diver

- Look at Sector that have tanked due to some problems.

- Small in size, Medium in experience, Large in aspiration and Extra-large in market potential - SMILE

- Look for companies that are going to manufacture laptops.

- Buy companies after a scandal or spooky regulation changes [[#^p1]] [[#^p2]] [[#^p3]]

- Pharmas, etc

- Buy companies that might go bankrupt but has huge moat or historical significance. [[#^p1]] [[#^p4]]

- Look for companies that have moat that is difficult to replicate.

- Stay invested during last and first week of year. Preferably stay invested all the time.

- Nifty Basis Charts for seeing the buying and selling pressures.

- Watch for Dairy Industry for coming decade.

- Bet on aspects that if stayed the same, will result in multi baggers. Look at past performance rather than future speculations.

- Like people, companies have character, which pays off in long term. Bet on that character staying the same.

- Sameness means the persistence of history.

![[Benner-Cycle.webp]]

## Cutouts




## Related

- [[Company Fundamental's Glossary]]

- [[Nifty Index Constituent's Perf Evaluation]]

- [[Interesting Sectors]]

- [[Good Stocks]]

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Wealth Share of Richest vs Poorest (at Greater NOIDA - U.P) https://www.instagram.com/p/ChRtoLXpDDn/?igshid=NGJjMDIxMWI=

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