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| “Identifying Multibaggers - Road to financial retirement” |
“Men who can both be right and sit tight are uncommon. I found it one of the hardest things to learn. But it is only after an investor has firmly grasped this that he can make big money. It is literally true that millions come easier to a trader (investor) after he knows how to trade (invest) than hundreds did in the days of his ignorance." – Jesse Livermore
The program has been designed to make the common investor understand the internal dynamics of equity markets. The idea is to create an environment of quick number crunching aided by sharp and clear logic. Macro economic policies have a large bearing on the way the economy and capital markets function. A lucid understanding of the macro economic policies is imperative to gain insight into sectors and companies During the program we would move away from the theoretical parameters and attempt to blend macro and micro economics as a analytical tools for identifying sectors and economies . Once a sector has been identified companies can be evaluated through various computational measures. Since the idea is to develop analytical ability rather then extend accounting skills none of the computational tools would take more then 10 seconds to solve.
- Welcome to the world of equities - Understand how to allocate between equity and debt. Differentiate between Gambling Speculating and Investing
- Equity Markets climb a wall of worry - Bull Markets start amidst complete pessimism and bear markets amidst complete optimism
- The Investment Cycles - Integrating the Performance with the perception
- The two approaches to Investing Top down and Bottom up
- GDP and Stock Markets - Very positively correlated over the long term. Read the empirical evidence on India and Japan.
- India - Cross section of business opportunities
- The Foreign Money - Who is bringing what
- Markets react temporarily to political news but the reaction to fundamental news is permanent - Buying amidst a bomb blasts, terrorist strikes, political upheavals etc has invariably led to making a lot of money..
- Stock Computational Tools - The complete Directory of wealth. E.P.S, PE, RoE, RoCE, EV/EBIDTA, Market Capitalisation, Dividend yield etc.
- Always buy a good company at a good price. Never buy a good company at a bad price Infosys in March 2000 was a very good company but at a bad price
- Cyclical stocks need to be sold into the boom of the underlying commodity rather then be held as long term investments.
- Debt - The Dirty Four Letter word It is not that dirty as long as your RoCE is greater then the cost of capital
- Dividend - Watch the fine print a Stock having a 7% dividend yield goes down 15% you still lose 8%
- Growth Rate - The one last thing that the markets would pay for. Growth never comes cheap and if you have to pay for it do so because market will pay for growth and nothing but the growth.
- Diversification - A substitute for ignorance. The Robert Hagstrom Study- Concentrated portfolios outperform diversified ones.
- The Market Cap Argument - Check how the real multibaggers evolved from companies within the very small market cap base. After the markets become saturated these companies hit their top and plateau out.
- Various things that make up a potential multibagger
- Is the Management Fair or Foul - Use the Secret Sensors to decide
- Why should HLL trade at a PE of 5 times that of Tata Steel or why should VST trade at a discount to ITC inspite of having a common foreign parent? . Note down the drivers behind a PE ratio.
- The biggest money is made during a PE Re-Rating and the biggest money lost during a PE De Rating
- Filter all news & events to decide whether or not they affect the market cap. Case history of a few multibaggers - Infosys, Bharti Televentures, Pantaloon
- Sustainable Advantage - The Ultimate tool
- The economic Value added (EVA) - One of lesser publicized and better tools of equity valuation
- Breaking the final numbers - The Du Pont analysis. A study into the top 200 companies in india.
- There is no end to analyzing a stock - What else should you look for before buying that stock
- When to Sell? If only we knew! Read a few parameters on when and how to sell a stock
- Throw the text books into the dustbin - See through empirical evidence why nothing works in this market
- Experience the power of leveraging . Why a leveraged portfolio has a better chance of giving out a risk adjusted return. Discuss how some of the greatest names of the Indian stocks markets started on leverage.
- See why tax savings instruments are really wealth destroying Understand the kind of Insurance cover one should take. See why insurance policies should be taken only for the earning members of the family.
- At 24% per annum Rs.10 lacs become Rs.85 lacs in 10 Years. Am I dreaming or is it a reality. Be conversant with the magical powers of compounding
Apply a simulated stream of case studies relating to over 100 news flashes on a set of stocks
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