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Sunday, September 21, 2014

My investing mistakes of past few years - 20 bad stocks!

All bloggers write about their success story, and i have been no different so far. But, everyone makes mistakes and sweep their mistake under the carpet. No one talks about the battles they lost!

Well, I think i should be honest and i am detailing out 20 bad stocks that i picked in last 4-5 years and lost money. Some of these have stopped trading and others are just penny stocks now.


  1. Brandhouse Retail
  2. REI six ten retail
  3. REI agro
  4. Ankur Pharma
  5. Anu Lab
  6. Amar Remedies
  7. Raj Oil
  8. KS Oil
  9. Parekh Aluminex
  10. Midfield Industries
  11. Deccan Chronicles
  12. ICSA
  13. Zylog systems
  14. Geodesic
  15. ICSA
  16. Timbor Home
  17. Everonn
  18. Edserv
  19. Bilpower
  20. Winsome

Why did i invest in these bad stocks? Well, some of them failed due to bad business environment and were better firms when i decided to invest in them.

And some other are simply my mistake - either a hot business sector turned bad like e-Education or corrupt management like KS oils, Winsome or value traps like Deccan Chronicle or business which could not scale up like Timbor homes or some fly-by-night operators like Ankur Pharma.

Hopefully this post will help you avoid the investing mistake i did. We will always end up making some wrong investments, but key to survive is to diversify your portfolio, never put good money after bad money and get rid of bad stocks as soon as possible.

Saturday, September 20, 2014

Reader Query: I want to invest Rs 25,000 every month.

Often readers ask questions like "I want to invest Rs 25,000 every month or every year" and how do I go about doing this.

There are some extremely good stocks which you can buy systematically over a period of time to generate wealth. These are:

Auto:

Apollo Tyres
Ashok Leyland
Escort

Banking/Finance:

Canara Bank
IDBI
Reliance Capital

Cement:
JK Corp

Chemicals:
Philip Carbon Black

Realty:
Brigade Enterprises
Sobha Developers

Consumer:
Voltas
Zicom

Capital Goods:
Kalpataru Power Transmissions
Valecha Engineering


Each sector has good scrips that will make money for you year on year. So keep SIPing and see your wealth grow.
Buy more when markets are down and Sell slowly when markets climb up. Thats all you need to do.

Cheers
Naren




Sunday, September 7, 2014

Why Mary Kom is a great movie to watch! And why it will make you a better Trader!

It was a great experience watching "Mary Kom" movie today afternoon. The thought that a trader's life is so much similar to that of boxer kept creeping in my head, throughout the movie.

Mary Kom - five times amateur world boxing champion - is a story of hard work, grit, determination, tears, blood oozing out of your lips and much more. It is a single person standing against system, punching in and out, taking punches on your face and bowing to acknowledge them and moving on.

It is a story that is capable of moving you, creating knots in your stomach, moving you like no other movie will move you. It is the story of one of the greatest Indian sportswomen of our times.

Boxing is a tough sport. But it is a sport, not a battle, like Mary's coach warns her very early on. Like Trading. It is a art and science. It is a battle of wits, speed and concentration against your opponent. The greatest of traders take punches. They bleed and they lose. The secret is to stay on, keep fighting and live to trade another day.

The secret to becoming a great trader is embedded in the movie. It is to struggle against markets, against millions of algorithms running in the market, it is to be nimble and guess opponent's next move and it is to follow the rules. And train hard.

Watch the movie. It will make you a better trader!


Sunday, August 31, 2014

Interesting Midcap, Smallcap stocks to buy now...

Hi Friends,

So markets are dull from past one month or so and smallcaps and midcaps are going no where. This is because of two-three reasons. One being, economy is picking up, but smaller firms always lag in their growth, revenues and profits and hence their results will take at least 6 months to show improvement in numbers.

Secondly, sharp run-up in midcap and smallcap prices from their depressing aybss has left everyone breathless and time correction is underway. And third reason being, large investors like LIC are selling right now, so obviously there is lack of ammunition.

All said and done, there is some stocks which are interesting and can be nibbled upon. Lets look at these:

1. Globus Spirits

2.  Atlas Cycles

3. Philips Carbon Black

4. Jaypee Infratech

5. Videocon Industries

6. Zicom

7. A2Z Maintenance

8. Dhunseri Petrochem

9. Venky's India

10. Eros International Media

A portfolio with above stocks should deliver 20-25% YoY return in next 3-4 years!

Cheers
Naren


Saturday, August 2, 2014

Courageous Modi government veto's WTO agreement...

PM Modi and his government is courageous and are a bunch of patriots. This was again demonstrated when Mr Modi single-handedly blocked a agreement of 168 countries and did well in doing so.

Sample this view and counter-view article and decide for yourself:

Why India is not WTO villain

The US is often accused of distorting world cotton market, as it dumps its excess stock. So India's position was that the agreement on agriculture provide an exemption for food subsidy (meant for survival of poor people).

Nine Reasons Why India's WTO Veto Shocked the World

India's veto may be the beginning of the end for the WTO. Trade experts say that if the WTO's 20-year-old rulebook does not evolve, more and more trade will be governed by new regional agreements such as the Trans-Pacific Partnership, which will have their own rules and systems of resolving disputes. That could lead to a fragmented world of separate trade blocs.

This is a very complex legal topic and outside our scope :) However, rest assured, our country is safe in hands of a very brave leader, who is not afraid of what the whole world thinks or does. He simple thinks about welfare of our poor people.

Cheers to that for being pro-poor and now lets go back to our Lamborghini and drink Champagne! 

Saturday, July 26, 2014

Few interesting articles..

Ok, so my apologies to start with... I have been very quiet from last "god knows how many months" on my blog...Since i was regular last, markets have changed, government has changed, and India is on a different territory all together...

So let me start all over again and promise myself to be more regular on this forum..

For starters, here is what I read this weekend and my views on them..

A Former Microsoft Employee Shares His Experience Of Getting Fired After 15 Years

So for you people, who think your job is your life, think again. You don't have to ditch your job, but your job can ditch you anytime. Always be ready in today's world. Keep walking, keep learning, as they say!

If You Want To Be Rich, Don't Get An MBA

So yet another article on MBA debate. And some useful snippets on how rich think! Think like them, ape them, if you want to be them!

Some nuggets from above article, so that you don't have to do the effort to read it :)

If you want to be rich, you must be an entrepreneur, investor, or both..
A job will not make you rich.
However, An MBA may not make you rich, but it can open doors..

Cheers!

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