Intelligence, Skill, Discipline & Wisdom in Value Investing from Bharat Shah

I am a firm believer of Law of Attraction as well as Law of Simplicity.

Everything we do have to be very simple in understanding and in execution as well. Since the day I entered in Value Investing, it is my quest to have a very simple process of investing that I can follow and I follow it.

Intelligence, Skill, Discipline & Wisdomin Value Investing

As far as Law of Attraction is concerned, coming across this interview was a sheer Law of Attraction. I didn’t know Bharat Shah until my boss told me to read his interviews. # Bharat Shah Interview in Outlook Business (more…)

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Tuition Fees of Rs.12,562 & Learnings from Trading the Markets

You may think that why are you reading something about Trading on Equity Research Blog? It’s because trading is a part of my journey in the market. I will share my learnings from trading the markets.

As an every new guy in the market, I was also overly optimistic. I was also dreaming of making income through Trading and investing those proceeds into the market for longterm. I still have that dream!

To fulfil such dream, I had to test my feet in trading.

Learning from Trading the Markets

It was April 2013, One of my friend had his Axis Direct account ready with him. I sourced some funds from 3 other friends and sourced one call from another friend. It was UCO Bank. The stock was trading at 65. It was a JACKPOT Call! The stock was to shoot up to 80. The stock didn’t went there and I end us loosing close to Rs. 2000.

This was enough to make me invest for longterm. I was’t trading for a year and a half because of this incident. Then comes December 2014.

It was December 2014, and I started trading through my fathers ICICI Direct Account. This time, learning from my past mistake, I wasn’t working on others call. I developed my own basic system for Nifty Futures Trading.

I lost around Rs. 5462 there. I paid roughly Rs. 2600 in brokerages. So I had to move to a cheaper option Zerodha. 🙂 (more…)

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Idea Funnel, Tracking Position & Equity Research!

Each and every great investment needs research! Sincere research!

What is the problem?

We are so busy tracking hundreds of companies we hardly get serious about it. We have some basic content to talk about companies with clients or colleague but we often lack seriousness in research.[At least I am feeling so in my case!]

This hollowness comes forward as subjective questions arises and then we try to change the topic.

Often, our friends, colleague or network suggest us a stock, we have glance at it and we ignore it for one or another reason without sincerely looking into it. Than we say, It was lapsed from my hand when this was 1/10th of the price.

The point is, we are so much involved in noise we barely get time to go deeper  in it.

I see a problem there.  Psychologically something is resisting me from looking into it.

What’s the solution to it?

The solution is to develop a process through which you will be able to determine which companies to look into and which are to ignore, as per your investment philosophy or interest.

How can we develop  such process? 

I am not very sure! But I have some earlier experience into digital marketing, where we used to create a “Sales Funnel” which converts a visitors into buyers.

Here, We need to something of that kind. We need to make an Idea Funnel which will help us to gather ideas from various sources and then we can boil it down to few worthy companies to dig deeper into.

How to use “Idea Funnel”?

Idea Funnel
Idea Funnel

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Patterns, Investment Decisions & Noise!

There is a lot of discussion happening about the companies and investment processes with Investors & people from our industry since I started my job in June.

Thinking Patterns MoneyMonk

Till date, I could figure out the following which(I feel) is required to find a great investment. I also call it my investment philosophy. (I know! You may say, It’s very simple!) But the simplest are the hardest to execute!

Great so far! (more…)

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MoneyMonk’s Checklist for Business Analysis & Evaluation

If we want to come to a conclusion whether the company is a good buy or not, we have to consider 3 aspects.

  1. Business
  2. Management
  3. Valuation

So in-order to aid our decision making, creation of check-lists become necessary. It will help us to minimize the error and reduce the bias in decision making.

I am working on developing my own checklists for Business, Management & Valuation. Here I am posting my Business Evaluation Checklist. (more…)

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Market Share vs Profit Share in an Industry !

market Share vs Profit Share MoneyMonk

Yesterday, something strange happened to me when I read this tweet from Prof. Sanjay Bakshi.

As always, my curiosity didn’t let me loose the moment and I expanded the conversation. Just when my mental fuse was gone. The discussion was about apple is having 92% profit share despite having 20% market share. The answer of the quiz was Rajiv Bajaj 😀 (more…)

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How Capital Allocation plays role in generating great returns?

Let’s imagine a scenario. You have developed superb equity research skills over the years so that you can find those companies which will turn into multi baggers. Nowadays you are very good at it. You have identified few companies which is going to be multi-bagger 😀 And you invested in those companies.MoneyMonk's CApital Allocation

But according to conventional wisdom, these micro caps or small caps companies have high beta hence more risky. Hence to mitigate the risk of loosing capital you allocated 5% of your over all portfolio being a smart person. Isn’t it? (more…)

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Blogs & Forums I follow on Daily Basis for Value Investing

Blogs I follow

In this internet lifestyle, Blogs & Forums are part and parcel of the learning process. These are the only places where you can get first hand information from value investors. There are several blogs by value investors being maintained regularly and you can gain lot of insights from them. Forums like ValuePickr also add lot of value to your learning experience. Not blogs all but it definitely helps. Ultimately it depends on you, how much you can absorb and gain from.  On Blogs, you can directly ask your questions via Comment and usually they answer your queries. But ask right question!

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Websites or Tools I use in Equity Research

tools I use
I started working as Financial Analyst for Concept Securities last month. We are managing PMS for clients and I work as a buy side Financial Analyst.

This was my first job so I spent some time organising my daily rituals. I asked for helps of seniors regarding tools and websites they use in their daily schedule. Here is the curated list of the tools I generally use on daily basis. I will update this post time to time as I will get new information or insights. All these tools are free in nature and I insist you to use it to it’s optimum. I am thankful to those who built these wonderful tools.

Have a look! (more…)

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