Go Back   Team-BHP > Around the Corner > Shifting gears


View Poll Results: Stocks as a percentage of my net assets are -
0 - 25% -- I'm like the most conservative Indians. I love FDs. 224 31.95%
26 - 50% -- I have a few stocks. 313 44.65%
51 - 75% -- I'm an active trader. 114 16.26%
76 - 100% -- Hey, I'm an i-banker!!! 50 7.13%
Voters: 701. You may not vote on this poll

Reply
 
Thread Tools Search this Thread
Old 6th January 2013, 01:09   #2101
Distinguished - BHPian
 
smartcat's Avatar
 
Join Date: Jun 2007
Location: Bangalore
Posts: 2,974
Thanked: 11,922 Times
Default Re: Do you play the stock market

Quote:
Originally Posted by JMaruru View Post
How about Bosch and Motherson Sumi? Bosch has been on automobile components for many a years and have been growing their topline n bottomline consistently.
Bosch is a very high quality company. Definitely worth buying because the stock is a good proxy for the entire automobile industry.

Motherson Sumi is an avoid. Growing sales by acquiring company in Europe/US is fraught with risks. They need to work on reducing debt and increasing return on equity.
smartcat is online now   Reply With Quote
Old 6th January 2013, 07:47   #2102
Senior - BHPian
 
Join Date: Mar 2007
Location: Mumbai
Posts: 1,457
Thanked: 282 Times
Default Re: Do you play the stock market

Quote:
Originally Posted by smartcat View Post
Bajaj Auto
M&M
Hero Moto Corp
Castrol India
Exide Industries
Eicher Motors
Amara Raja Batteries
Tube Investments
Balkrishna Industries
Cummins India

All the above companies are good investments for relatively long term (3 years+) investors.
Castrol India - highly overpriced
Exide Industries - overpriced

Quote:
Originally Posted by JMaruru View Post
How about Bosch and Motherson Sumi? Bosch has been on automobile components for many a years and have been growing their topline n bottomline consistently.
Bosch - overpriced.
Motherson - highly overpriced.

Picking good stocks is not end of story. It also needs to be a good buy. Lots of good stocks aren't good buys.
carboy is online now   Reply With Quote
Old 6th January 2013, 09:38   #2103
BHPian
 
JMaruru's Avatar
 
Join Date: Jun 2008
Location: Bengaluru
Posts: 527
Thanked: 101 Times
Thumbs up Re: Do you play the stock market

Quote:
Originally Posted by carboy View Post
Picking good stocks is not end of story. It also needs to be a good buy. Lots of good stocks aren't good buys.
I feel quality always comes with a price. It may not be a value buy at certain times, but when it is one can invest. Just my 2 cents.
JMaruru is online now   Reply With Quote
Old 7th January 2013, 10:20   #2104
Distinguished - BHPian
 
smartcat's Avatar
 
Join Date: Jun 2007
Location: Bangalore
Posts: 2,974
Thanked: 11,922 Times
Default Re: Do you play the stock market

Quote:
Originally Posted by JMaruru View Post
I feel quality always comes with a price.
Brilliant quote! You cannot look at just the on-road price and say that BMW 3-Series is overpriced!


Quote:
Originally Posted by carboy View Post
Castrol India - highly overpriced
Exide Industries - overpriced
Bosch - overpriced.
Motherson - highly overpriced.

Picking good stocks is not end of story. It also needs to be a good buy. Lots of good stocks aren't good buys.
If a particular company has the following attributes, then its P/E ratio can remain high for many many years -

- Solid brand name
- Dominant market share
- Good balance sheet (low debt, high RoE, decent dividend payout ratio)

Nestle India is a classic example. It has rarely traded below P/E of 35, but the stock price keeps going up almost every year.

Name:  nestle.jpg
Views: 1991
Size:  64.0 KB
smartcat is online now   Reply With Quote
Old 7th January 2013, 10:51   #2105
Senior - BHPian
 
Join Date: Mar 2007
Location: Mumbai
Posts: 1,457
Thanked: 282 Times
Default Re: Do you play the stock market

Quote:
Originally Posted by smartcat View Post
Brilliant quote! You cannot look at just the on-road price and say that BMW 3-Series is overpriced!
I didn't realize that the BMW-3 Series was an investment in the first place.
carboy is online now   Reply With Quote
Old 8th January 2013, 03:30   #2106
BHPian
 
JMaruru's Avatar
 
Join Date: Jun 2008
Location: Bengaluru
Posts: 527
Thanked: 101 Times
Thumbs up Re: Do you play the stock market

Quote:
Originally Posted by smartcat View Post
If a particular company has the following attributes, then its P/E ratio can remain high for many many years -
- Solid brand name
- Dominant market share
- Good balance sheet (low debt, high RoE, decent dividend payout ratio)
Nestle India is a classic example. It has rarely traded below P/E of 35, but the stock price keeps going up almost every year.
Couldn't agree more. The other FMCG stock which sustains high PE(30+) and has seen consistent growth is ITC. In fact it has been one of largest wealth creator on absolute terms, in the recent past.
JMaruru is online now   Reply With Quote
Old 8th January 2013, 15:50   #2107
PGA
BHPian
 
Join Date: Apr 2012
Location: Ludhiana
Posts: 129
Thanked: 138 Times
Default Re: Do you play the stock market

Hi,
I am new to stock markets. I have always watched them from a distance albeit with an interest. I have few questions, I will be grateful if experienced inputs are accorded to enable me make a choice.

Is it possible to make a career/living by dealing in stocks at an individual capacity.

If so, then what is the correlation of the investment vis a vis the returns, considering one doesn't want to go too aggressive.

Does day trading invariably leads to losses in the long run and one should go for long term investments, that is the conventional wisdom as per my understanding, or is it possible to have a steady cash flows.

What role does technology play in day trading? Is algorithimic based trading the panacea for day trading. Is intricate knowledge of statistics/technicals essential for day trading.

Eagerly awaiting for some inputs
Regards
PGA is offline   Reply With Quote
Old 8th January 2013, 16:42   #2108
BHPian
 
penpavan's Avatar
 
Join Date: Oct 2007
Location: Blore
Posts: 381
Thanked: 131 Times
Default Re: Do you play the stock market

Guys, how is Exide Industries?
People are suggesting aggressive targets like 160+
penpavan is online now   Reply With Quote
Old 8th January 2013, 17:26   #2109
Distinguished - BHPian
 
smartcat's Avatar
 
Join Date: Jun 2007
Location: Bangalore
Posts: 2,974
Thanked: 11,922 Times
Default Re: Do you play the stock market

Quote:
Originally Posted by PGA View Post
Is it possible to make a career/living by dealing in stocks at an individual capacity.
Yes. I know many people who are doing it. Including myself.

Minimum Requirements:

1) Genuine interest in the markets. If your intention is only to "earn money", then drop the idea right now.

2) Large starting capital. Think of this as starting a new business. Ideally, you should be having no outstanding loans to pay off (no EMIs = peace of mind). Plus, it helps if your spouse is working so that there is no pressure on you to earn money every month.

3) Tons of experience. It took me 11 years in the market to finally decide that this is where I want to be.

4) Be open to new ideas and be ready to experiment. Nothing is taboo. Stocks, debt MFs/FDs, currencies, commodities or Futures/Options in Stocks etc.

Quote:
If so, then what is the correlation of the investment vis a vis the returns, considering one doesn't want to go too aggressive.
Not sure if I understood the question - but your returns will generally be directly proportional to the risks you take.

Quote:
Does day trading invariably leads to losses in the long run and one should go for long term investments, that is the conventional wisdom as per my understanding, or is it possible to have a steady cash flows.
Since you are new to the markets, you should be doing long term investing first. Start with www.investopedia.com. Read up on "fundamental analysis" using Google. Read Peter Lynch's book "One Up On The Wall Street".

After a few years, get into short term/positional trading.

Think of making a career out of this only after you have seen a couple of bear markets.

Quote:
What role does technology play in day trading? Is algorithimic based trading the panacea for day trading. Is intricate knowledge of statistics/technicals essential for day trading.
You can make money in a million ways. You need to find one that you are most comfortable with. Meanwhile, you need to understand "technical analysis" before you get into day trading. Again, read up on Google/investopedia.com

Last edited by smartcat : 8th January 2013 at 17:30.
smartcat is online now   Reply With Quote
Old 8th January 2013, 22:40   #2110
PGA
BHPian
 
Join Date: Apr 2012
Location: Ludhiana
Posts: 129
Thanked: 138 Times
Default Re: Do you play the stock market

Quote:
Originally Posted by smartcat View Post

Yes. I know many people who are doing it. Including myself.
Thanks a lot for these inputs. I am thinking of progressing ahead with the idea, would like to seek your advice as I move forward, hope you will oblige.
rgds
PGA is offline   Reply With Quote
Old 9th January 2013, 21:18   #2111
Senior - BHPian
 
PatienceWins's Avatar
 
Join Date: May 2007
Location: Bangalore
Posts: 2,157
Thanked: 261 Times
Default Re: Do you play the stock market

Quote:
Originally Posted by PGA View Post
Hi,
I am new to stock markets. I have always watched them from a distance albeit with an interest. I have few questions, I will be grateful if experienced inputs are accorded to enable me make a choice.

Is it possible to make a career/living by dealing in stocks at an individual capacity.

If so, then what is the correlation of the investment vis a vis the returns, considering one doesn't want to go too aggressive.

Does day trading invariably leads to losses in the long run and one should go for long term investments, that is the conventional wisdom as per my understanding, or is it possible to have a steady cash flows.

What role does technology play in day trading? Is algorithimic based trading the panacea for day trading. Is intricate knowledge of statistics/technicals essential for day trading.

Eagerly awaiting for some inputs
Regards
I would recommend you to read about value investing. The successful way of long term investing practiced and proven by Warren Buffet and Charlie Munger.

The golden rule of investing according to me - "Buy when others are fearful, sell when others are greedy." Do not get carried away by the optimism/ euphoria in the market.
PatienceWins is online now   Reply With Quote
Old 9th January 2013, 21:26   #2112
Senior - BHPian
 
Join Date: Mar 2007
Location: Mumbai
Posts: 1,457
Thanked: 282 Times
Default Re: Do you play the stock market

Quote:
Originally Posted by PatienceWins View Post
I would recommend you to read about value investing. The successful way of long term investing practiced and proven by Warren Buffet and Charlie Munger.
The best book for this is "Intelligent Investor" by Benjamin Graham. Graham was Buffet and Munger's teacher. I think this is the first book anyone thinking of investing money should read. Even if you don't want to get into 'value investing' - this book is a must read, IMHO.

You can start by reading this essay by Buffet - http://www.safalniveshak.com/wp-cont...en-Buffett.pdf
carboy is online now   Reply With Quote
Old 9th January 2013, 21:45   #2113
BHPian
 
JMaruru's Avatar
 
Join Date: Jun 2008
Location: Bengaluru
Posts: 527
Thanked: 101 Times
Thumbs up Re: Do you play the stock market

Quote:
Originally Posted by penpavan View Post
Guys, how is Exide Industries?
People are suggesting aggressive targets like 160+
These might be short term technical targets. But, yes it is good as an investment, considering they have their foot in automotive and also non-automotive markets. They have been increasing their share in inverter battery segment. Considering that most of the towns/cities are power starved and hence the increased relevance of back up power, one can invest in this stock for long term.
JMaruru is online now   Reply With Quote
Old 9th January 2013, 21:51   #2114
Senior - BHPian
 
PatienceWins's Avatar
 
Join Date: May 2007
Location: Bangalore
Posts: 2,157
Thanked: 261 Times
Default Re: Do you play the stock market

Quote:
Originally Posted by carboy View Post
You can start by reading this essay by Buffet - http://www.safalniveshak.com/wp-cont...en-Buffett.pdf
Safal Niveshak (www.safalniveshak.com) has all the resources needed for a value investor.

I am currently reading "The Little Book That Builds Wealth" by Pat Dorsey. Excellent book to understand Moats.
PatienceWins is online now   Reply With Quote
Old 24th January 2013, 02:21   #2115
BHPian
 
JMaruru's Avatar
 
Join Date: Jun 2008
Location: Bengaluru
Posts: 527
Thanked: 101 Times
Question Re: Forum/Community for Indian Stocks!

Is there an active forum/community for discussion solely on indian stock market investments and trading?

Pl. suggest some quality portals/forum where the discussions are moderated.
JMaruru is online now   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Stock Steering Wheel with Audio Controls Connected to After Market Headunit? Epic In-Car Entertainment 34 24th July 2014 12:36
Stock Market - Technical Analyis Tutorial carboy Shifting gears 5 24th June 2011 23:28
Games you can play at office (Flash / browser based) Spinnerr Shifting gears 24 23rd September 2010 20:37


All times are GMT +5.5. The time now is 16:29.

Copyright 2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks