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basant
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Quote basant Replybullet Topic: Basant's Corner delivers 78% since launch.
    Posted: 04/Nov/2013 at 8:00am

 

Basant's Corner completed 2 years of operation on the 1st of November 2013. In this period the Basant'sTop Ten Stocks  has returned 78% in total returns while gains for the last one year has been 26%. The CAGR for gains for the first two years has been 33.4% whereas everyone is aware as to what the Sensex and the small and mid cap stocks have done in this period. Please note that these gains  have been computed assuming an equal weighted passive portfolio of Top Ten stocks whereas gains for an astute and a slightly active investor would have been higher as the top 6 stocks of the portfolio has done a lot better than the tail a dichotomy which we will take up any day because the top stocks matter more for a portfolio than the tail  and though we have churned the Top Ten Stocks quite a bit the overall structure remains the same because the changes happen more in the bottom 4 stocks than in the top 6.

Even while the focus of the Basant's Top Ten set of stocks as also in Basant's Universe remains to provide a long term view we have continued to buy and sell a stock that has completed its objective or has met with a roadblock which threatened to cause significant damage to the original thesis. One such company was TBZ which was picked up at Rs 106 last year and then as it  hit 200 in the next 3 months it was recommended to reduce 50% positions and as the stock went past 270 it was put under a 'Sell' category.  TBZ is currently down 50% from that level but as our objective has been achieved we have refused to look at the stock after the 'Sell'.

Another stock that saw a change in thesis was Titan as when the RBI put its gold under lease model under check it put the business model of the company under threat as its capex light model was replaced by a capex heavy investment led model and though Titan is a world class business we think that growing at 25% will remain under serious threat and hence we replaced Titan with a better option capable of growing faster and available at a much cheaper valuation and competing in a near monopoly space with years of growth ahead of it but as with all small caps the story has to be watched carefully and closed out on the first signs of trouble..

Each year we have had our own share of hits and misses so while TBZ was the hit last year this year's hit was a Rural India play which is up 72% from its recommended price of March 2013.

The misses have also been there but none in the Top Ten so that helped a lot. In fact we do not put stocks in the Top ten unless we are very sure of capital protection.

One bad call was Innovative Industries that  was recommended at Rs 90 and then went up to Rs140 in quick time. The stock was than alleged to be under a scanner for some corporate governance issues and fell in a straight line to around Rs50 at which point we threw in the towel and said 'Reduce'. Innovative continued to fall and is now at Rs 11 all in a matter of a few months.

Another miss was Clariant Chemical a stock that was bought at Rs 600 on a 5% yield on the assumption and management communication that the Swiss parent wants to use India and China as its outsourcing hub. The parent than started selling off the plant and machinery of the subsidiary at which point we recommended a sell on a no loss or no profit basis. The stock fell 30% after that.

Overall the returns from the set of stocks that we keep putting up have been satisfactory and though the market continues to move into newer highs most of the stocks in the Top Ten have been making new highs for the past 2 years and seem set to do so for the next many. Let's see.

The trick to this superlative performance has been our ability to stay away from harm's way for a majority of stocks by selling out at the first signs of danger while extending our gains from the ones that we got it right.We continue to make many changes to Basant's Corner  and some of them have already happened while the others are in progress. I would share those as and when we complete it.



Edited by basant - 04/Nov/2013 at 8:10am
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ashwinidamani
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Quote ashwinidamani Replybullet Posted: 04/Nov/2013 at 10:53am
Congratulations Sir !!!
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rohit1889
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Quote rohit1889 Replybullet Posted: 04/Nov/2013 at 11:42am
Congrats Basantji for the splendid performance.
If you're prepared to invest in a company, then you ought to be able to explain why in simple language that a fifth grader could understand, and quickly enough so the fifth grader won't get bored.
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Quote raviteja02 Replybullet Posted: 05/Nov/2013 at 8:45pm
That's by far one of the best performances considering the broader market and if you give points to integrity and other intangible things like wisdom, it would have been 100% since launch. All the very best dear Basant and keep rocking!! You are the best.
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Quote DHIRAJKANT Replybullet Posted: 14/Nov/2013 at 1:27am
AFTER TAKE basant's corner U MAY Zzzzzzzzzzzzzzz
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LearningToFly
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Quote LearningToFly Replybullet Posted: 14/Nov/2013 at 8:56am
Great performance Basant Jee.
Success... at all cost.
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basant
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Quote basant Replybullet Posted: 17/Nov/2013 at 11:43am
Originally posted by raviteja02

That's by far one of the best performances considering the broader market and if you give points to integrity and other intangible things like wisdom, it would have been 100% since launch. All the very best dear Basant and keep rocking!! You are the best.


Thank you all.
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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Quote catchsudipto Replybullet Posted: 26/Nov/2013 at 4:42pm
congrats Basant

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